You need to get a copy of your credit score. But the question is, what is a credit score after all? A credit score is just a 3-digit number derived from the analysis of your personal credit score. This number ranges between 300 and 850. A lower score will get a denial from creditors or hard terms, depending on the situation. You can get your credit score from any of the major credit agencies: Equifax, Experian y TransUnion, and they do not disclose their exact formula used to calculate your credit score. These are the factors that determine your credit score: the payment history, amounts owed, credit history’s length, types of your credit, and new credit.
If you get a copy of your credit score, this action will not affect your score in any way, as the financial system considers it to be a ‘soft inquiry.” If a creditor checks your credit score, it will negatively affect the credit score, as the financial system considers it to be a ‘hard inquiry.” You can also fix any inaccuracies in your credit score if you get a copy. Getting a free copy of your credit score is not enough, as you will only get “educational scores” or estimates.
You will have to pay around $40 to check all three credit scores. These scores will be different from one agency to the next as they get information from one another and use proprietary technology to calculate these scores. However, these credit scores will look very similar after all. Both TransUnion and Experian will let you check your educational score for free. Though these scores are not real, you will get advice and useful information on how to improve them.
Checking Reports and Doing Your Housekeeping
If you did not get a loan, you can get a free copy of your credit report from any of the three major agencies. You can also get a free copy of your credit report every year. These credit reports contain necessary information to compute your score, but you will not see the score on them. Dispute the inaccurate information on the credit report right away, as this situation is not uncommon. You will get a response from the credit agency within 45 or 30 days. If the agency either does not respond or finds the information inaccurate, the information will be erased from the credit score, which will tend to really raise your score. You can also write a 100-word paragraph explaining any issues about your credit score.
If possible, you may ask any creditworthy family member or friend to include you as an authorized user on his oldest credit card. This will help you apply for credit card. Remember that he does not have to give you the business credit card, he just have to include you as an authorized user to his account. Doing so will both increase the average age of all your accounts and give you a better credit history. To demonstrate your creditworthiness, take out a small loan from a bank and then pay it back in full.
Understanding The Landscape
If your credit score is 650 or above, you can take out an unsecured credit card, and it does not require a deposit. If your credit score is not very good, you should take out a secure credit card which requires a deposit as a collateral. This deposited will “secure” your credit card, but it will be deposited back in full upon your closing the account in good standing. You will have to transfer money directly to your debit card to use it as a credit card. Make sure these cards report to the credit agencies, and pay attention to interest rates and fees of your cards.
Credit Card Applications
People with high credit scores may get both cash back and very low interest rates. Since you will be giving away sensitive financial and personal information, keep all your data safe. For instance, do not enter your financial or personal information on any public computer out there, and the same is true if you use a public Internet connection.
If you really want to apply for credit card, you have to bear in mind the above tips. If you really want to get the most out of credit card services and best credit card offers, you should follow the tips above.