Summary:
Eventually
when you have an improved credit score, you could decide to change
your card to one with a higher limit and that does not require any
form of deposit. If you have plans of doing this, it is advisable
that you call your credit card Company to request for an upgrade.
Your credit history will be reviewed and if it is good enough, they
you will get the requested upgrade.
Most
lenders chose their specific requirements and in most cases, having a
good or bad credit score is just one of the criteria. Having a good
or bad credit score a very important factor but each lender has to
choose the exact way to select the credit applicant. This is because
lenders could decide to check your good or bad credit score from
several sources or will look through several credits scoring model,
the most import think is the range which you fall in. The main
criteria that determine a good or bad credit score is the range which
you fall into. These work as a quick reference for a lender. So the
main focus of a good or bad credit score is the range which you fall
into rather than being overly concerned about the particular score.
It’s
very important to understand the different scoring model and their
range and how they are being used by potential lenders. It’s
necessary to monitor where you stand which is your good or bad credit
score. It’s advised that you should use the same scoring model to
it won’t turn out to you trying to check the same score using
different scale. So select a scoring model and stick with it
throughout the whole process. Any improvement you make on one of the
models will reflect on others. Always remember that the score can
vary every time you check it. As long as the score is kept within a
very good range, those slight changes don’t make much difference in
your financial health.
When
you borrow a given amount of money, having a good or bad credit score
does not specifically determine if you will get approved for the loan
or if you will be given the best interest rate. Credit agencies
review your given credit history to determine if you could make
payment of the borrowed money on time. You can have a large amount of
debt and still have a very good credit score once you make timely
payments for your bills every month. From your credit report, it will
be determined if you can afford to make payments for the loan you are
applying for. This is why your income and other money that was
previously borrowed have a huge impact in rending decisions. Lender
will also review the money you owe and the amount you earn and the
assets you have available. If you have a good or bad credit score,
using one of the best
credit cards for good credit can be a very good way to
improve your credit score. These credit cards for good credit works
just the same way a regular card works. You are get charged for
purchases to your account, make monthly payments and also pay a given
interest rate on balances that was carried from one month to the
next. Some of these credit cards for good credit come with an added
advantage where you can make deposit first. His deposits will guard
you from card issuers when you don’t make payments and make it easy
for someone with good or bad credit score to get approved.
When
selecting credit cards for good credit, make sure you go for one that
reports to all three credit bureaus. Some cards don’t do this. If
your card issuer does not send the reports to these bureaus, your
good or bad credit score will not improve no matter how careful you
are with your payments. Even if you get a card that requires you to
make some down payments, you won’t automatically get credit cards
for good credit. You will need to go through an application process
and most times, the issuer will have to review your credit score.
Each credit check being made by these issuers will result in a slight
reduction in the score so it is advisable not to apply for so many
cards. If you have been rejected a number of times, check for other
options like a card that doesn’t require credit check at all. To
improve a good or bad credit score, always try to make payments using
credit cards for good credit on time and use a only a small
percentage of the given credit to you.
Related Source: Understanding What Is a Good Credit Rating Score
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