What Credit Score Favors your Credit Card Application?
No Credit History
People make mistakes. This is one of the facts of life that will most likely never change and it will always cause problems. When it comes to the financial aspects of many people’s lives they screw up once in a while, mostly when they are young and don’t know how to handle their finances as well. However, it is when this occurs that a person builds a bad credit history and puts themselves in a tough position. Your credit history determines a lot when it comes to your future, your finances and your credit card. A good credit history will get you good credit cards while a bad credit history will get you bad credit cards!
While it can be very difficult to bounce back from a bout of bad credit, it isn’t impossible. Below are some steps on how to improve your bad credit and how to apply for a credit card with bad credit. If you find yourself asking, “How do I establish credit?” you’ve come to the right place!
Starting credit on a good foot!
Your beginning steps are going to be you’re most crucial because they will determine just how quickly your credit begins to grow. A good start means getting a good, solid job and keeping it! Creditors want to see stability in your life and one of the surest ways to do this is to stay at a particular job for a decent amount of time. If you are constantly switching jobs here and there creditors will run the other way because they will see you as unstable and unpredictable!
Another good step to establishing a good credit history is to open up a savings and a checking account, if you don’t already have them. Both of these accounts will show a creditor that you are serious about your finances and that you aren’t just ‘stashing money under your mattress!’ A savings account shows that you are serious about saving for the future and a checking account shows that you have the capabilities to pay your bills!
Along these same lines you may want to consider getting all the bills you have in your name. Many times younger folk tend to have their utilities and phone bills in their parents names or their roommate’s names, not theirs. By having bills in your name you will build credit quicker and more efficiently.
The last first step that you can take is to get a copy of your credit report. Your credit report is basically your entire credit standing, good and bad. It will show all of your bills, all of your utilities and all of your open credit accounts. A 600+ credit score is good while over 720 will get you the best credit card offers (credit scores are calculated out of 800).
To request a copy of your credit reports go to one of the three main credit bureaus in the United States, Equifax, Experian or Trans-Union. Any of these will be able to provide you your report for a small fee. Checking your credit report will also ensure that your identity is not being stolen because it will show any suspicious happenings. If you do see something unusual in your report you should report it immediately because your credit could be further damaged!
Other ways to build a good credit score…
Building your credit score will take time and patience and will not happen over night. Of course, the worse your credit, the more time this process will take. Before long you’ll be qualifying for all the instant approval credit cards and rewards credit cards! To continue improving your credit score you should look to one of the below steps:
- Apply for a bank secured credit card! These cards work like a debit or ATM card because they require you to put money into an account before you can spend it. These cards will help you get a good credit history by slowly showing that you can handle your money properly. Plus, you can’t spend what you don’t have!
- Gasoline credit cards are typically easier to get! If you apply for a gasoline credit card, whether you have good or bad credit, you’ll probably get it because these cards are the easiest to get.
- Apply for a credit card through a co-signer! If your credit is really shot then you may want to look into getting a co-signer to help you get a card. If you have a close friend or relative with excellent credit, you can get them to sign on one of your cards just long enough for you to build good credit of your own.
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Comments
Daniel, 06:25 AM, September 06, 2007
I have a bad credit score and I think if it is worth taking a risk and trying to improve it. I hope your site will help me.
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