Bad Credit Affects Credit Card Applications
It is a very well-known practice that before actually doing business with any particular person, you must have considerable knowledge about his/her credit history. This is usually done to balance or minimize the risk involved with such transaction.
Your credit rating is very important because different banks that issue credit cards will mostly likely check your credit history. If you have a bad credit history, then your chances of getting a credit card is very slim.
Make sure that you apply for a credit card that doesn’t charge too may fees or have very high interest rates.
We live in a modern world where change occurs with just a blink of an eye. People are trading for nicer homes, fancier cars, and even credit cards. Most credit cards being offered by its provider promises higher credit limits. But you must watch out for these offers.
Higher credit limit entails a bigger amount of monthly dues. If you have trouble paying your current credit card dues, then most likely, you will have greater trouble with a card that offers a much higher credit limit.
Most of the time, people make unnecessary expenditures if they have a high credit limit, what they don’t actually see is that when ‘paying time’ comes, they may encounter some difficulty.
Your credit history also matters if you want to get a loan. So it does not only involve your credit card application, but also other more important things.
On the other hand, if you have a good rating when it comes to credit, people or banks often regard you less risky. They’d be more than glad to do business with you. You will soon realize that much of the offers charge very low interest rates, this is so because most banks or other business establishments want to attract those with clean ratings.
You can avoid the so-called ‘bad credit’ by making prompt monthly payments of your dues. Before making any purchases, or withdrawing money, make sure that you ‘badly’ need it. Oftentimes, people spend their money unwisely and most of them ended up having bad credit.
A wise decision is still the best solution to maintain a good credit standing; whether with a credit card, car loan, student loan, or a mortgage.
There are people who disregard their bad credit ratings. This is probably because they are not aware that there are actually organizations which keep a record of your credit transactions. Most states have these kinds of organizations to protect certain businesses against high risks of loss.
So if you were making an application for a credit card or a loan, the issuer would usually make routine checks with these organizations. But not all establishments have access to the credit information; a screening is usually conducted before the information is given out. There are also banks/establishments which ask for your permission for them to check your credit rating but there are also those who don’t.
If you don’t want to encounter any problem when making a credit card application, whether online or not, makes sure that from the very start you have a good rating. You know yourself very well, more than anybody else does.
Maintain a good credit reputation and get what you truly deserve. Know your obligations and your responsibilities.
Mario Churchill
http://www.articlesbase.com/advice-articles/bad-credit-affects-credit-card-applications-74608.html
How does declined credit card applications affect your score?
Hello, i applied for 2 credit card applications within a week and got declined. This is because, i am 18, and only have 2 bank accounts with no credit on file. When i paid $15 yesterday to see my credit score, it reported as having "no score". So i guess my declined accounts don't count, expect for the inquiry right?
And say i do have credit, how much does a decline account do for a credit card.
Also 1 more question: What is the easiest card to get, ive tried:
1. Texaco
2. Best Buy
3. Bank of America
any ideas?
Credit card declinations are not reflected in your credit report but a lot of inquiries can hurt your score. If I were you I would consider trying to get a credit card through your bank or try a local credit union. If you need to get a secured credit card where the amount of deposit you put in equals the credit line. Charge some small purchases but pay off the entire balance every month. You also want to show a payment as agreed history. My husband and I have superior credit (over 850 scores) He has limits of $25,000 or more on some of his cards. Believe me when I married him I was coming into the marraige with a Chapter 7 bankruptcy and by following this advice I am in Credit Heaven. Good Luck!!
References :
if you're just starting out, you may want to open a checking account with a visa/mc debit card, then open a small line of credit linked to your bank account — use the line, and pay it off regularly. this will allow you to establish credit history.
once you have a few months of good payments and responsible use, get a cash back rewards card, which actually PAYS YOU to use it.
I only use cash-back rewards cards, and here are the top ones available:
Citi Dividend Platinum Select — 5% cash back groceries, gas & drugstores and 1% on all other purchases (best all around card out there). No intro purchase APR, but 0% balance transfer APR for 1 year. There is a limitation of $300 dividend reward dollars / year, minimum $25 increments. this translates to $6k in gas, groceries, drugstores or $30k in general purchases.
https://www.accountonline.com/acq/choose...
Chase Free Cash Rewards Platinum Visa — 1% cash back on all purchases. UNLIMITED rewards that can be redeemed in $25 increments. 0% APR for 1 year.
http://www.chase.com/ccp/index.jsp?pg_na...
And if you are a Costco member, take advantage of their TrueEarnings American Express Card — 3% cash back at all restaurants, 2% for all travel (airfare, hotel, car rental), and 1% cash back on all other purchases. No limit in rewards, which are sent to you once a year in a check.
http://www201.americanexpress.com/apply/...
i personally utilize ALL THREE of these cards, for different purchase types — maximizing your rewards is easy with this great combination, as long as you are paying off the ENTIRE balance every month.
good luck!
References :
Well yes they do affect your score not that you were declined but by applying for credit many times over a short period of time, they are called inquiries and they reflect badly. If you have been applying for a credit card and were declined set your sights a little lower try bad credit credit cards found here :
http://www.dgftaworld.net
References :
If you were declined twice in such a short period of time, the best thing you can do is wait 6 months before applying again. Creditors see this as a desperate short-term need for credit.
If you wait 6 months, then you will be in a better position to apply. Furthermore, if you have 2 bank accounts in good standing, then your bank would be the best place to get your first card. You can meet with your personal banker (go to a branch) and ask them. Your good history with your bank accounts will be taken into consideration within that bank.
Here is some more information on how to choose the best card for your needs.
References :
http://www.managedebttoday.com/credit_debt_management.htm