How to Qualify For a New Credit Card How You Can Improve Your Credit Score Here ph
Everyone assumes that it’s easier to qualify for a new credit card. After all, you’ve been there and done that. Don’t be too confident, though. It’s best to be prepared just the same. A rejected application can badly hurt your credit score. Qualifications for a New Credit Card Do you still remember how you qualified for your first credit card? The same goes when applying for a new card. Certain factors will still be checked, but with slight differences. Age.At this point, age is not a factor anymore. You’re probably of legal age, and perhaps maybe more than 25 years old. Income.Since 2011, credit companies only accept the personal income of applicants, not of their parents or spouses. Even if given regular allowance, the household income will never count as your own income. Credit score.Everyone has a credit history-a record of how well one manages financial obligations. This history is summed up in three digits: your credit score. The higher your score is, the better the rates, discounts, and offers will be. A 750-score or above is good while 650 or lower than that is bad. A quick way to boost score is to check your credit report for any errors and correct them. Every year, you are entitled a free copy of credit report from three major bureaus, namely Equifax, TransUnion, and Experian. No worries if you have a bad credit. Banks offer special credit cards for people just like you. The catch? Higher interest rates, more expensive fees, and lower credit limit. Debt.Have you heard about “utilization rate?” It is the ratio of debt to the available credit. Ideally, you should never have a debt more than 30% of the credit. Too much debt will indicate that the applicant has no way to pay the new card, thus, do not qualify to get one. But don’t lose hope. If there are cards for bad credits, there are also cards for those in debt. These are referred to as balance transfer credit cards. They’re specially offered for people who want to manage debt wisely. But take note that such cards also carry high interest rates, enormous fees, and low credit limit. Sometimes, all it takes to tell whether you qualify or not is your current and active plastic. The
1/2
record there will demonstrate how good you are at using plastics. What If You Don’t Qualify? In this case, your best choice is get a secured credit card. It can be used the same as a new credit card. The only difference is it needs a security deposit of as little as $300 before approval. This deposit will give the bank peace of mind. But this will not be used to pay off your monthly bills. Bills still have to be paid just the same. Pay on time and pay fully every month. After a year, your hard work will pay off and you may qualify for a new credit card. Leave your comment below...and I'll send you a free gift.
Tweet This Post
Do's and Dont's of the Credit Card Game Here pf Futhermore: How to Qualify For a New Credit Card
2/2 Powered by TCPDF (www.tcpdf.org)