| Have you wondered how credit card eligibility is | | | | Getting a Credit Card |
| determined? | | | | When you apply for a credit card, the company that |
| Curious whether you're eligible for a credit card? | | | | issues the card checks with a credit reporting agency |
| It all has to do with your credit rating and credit score. | | | | to get your credit report and find out your credit score. |
| Here we go with a quick tutorial on what constitutes | | | | Since they're basically lending you money whenever |
| credit-worthiness and how you can make sure that | | | | you use your credit card, they want to make sure that |
| you are eligible for a credit card when you want one. | | | | you're the kind of person who pays your debts on |
| Credit Reports and Credit Scores | | | | time. They have an ideal 'snapshot' that they compare |
| When you buy something on credit or have a credit | | | | your credit report and score with. The closer your |
| card, the credit card company or store makes periodic | | | | credit score is to their ideal, the better your chances of |
| reports to one or more credit reporting agencies. | | | | getting a credit card with a great interest rate and |
| Those agencies keep records of your credit history - | | | | good terms. |
| how good you are at paying your bills on time. | | | | The lower your credit score is, the more a risk you are |
| Among the things that go into your credit history are: | | | | for the credit card company. Because they take a |
| 1. How many credit cards you have | | | | bigger risk when they lend you money, they charge |
| 2. How much you owe on each one | | | | you more by giving you a higher interest rate. If your |
| 3. How many loans you've taken out | | | | credit score is too low, they won't give you a credit |
| 4. How much you still owe on them | | | | card at all. If you have no credit history at all, they also |
| 5. Any payments that you've made late | | | | may decide not to give you a credit card, depending |
| 6. Any payments that you've missed | | | | on other factors in your credit history. |
| 7. If you've ever defaulted on a loan | | | | If you're turned down for a credit card.. |
| 8. If you've ever filed for bankruptcy | | | | The credit card company has to tell you the reasons |
| 9. If you own a house | | | | that you were turned down. They also have to tell you |
| 10. If there has ever been a judgment against you for | | | | which credit reporting agency they got your credit |
| unpaid debts | | | | history from. There are three major credit reporting |
| Credit reporting agencies assign a 'weight' to each of | | | | agencies in the country - Equifax, Experian and |
| those facts, and assign points to you based on each | | | | Transunion. The report that the credit card company |
| of those points. The total of those points is called your | | | | used to make their decision will be one of those. |
| 'credit score'. The higher your credit score is, the better | | | | You have the right to request a copy of the credit |
| your credit is. | | | | report that they used to make your decision. The |
| Some of the things that you lose points on your credit | | | | company that provided the report to the credit agency |
| score for are: | | | | has to give you a copy free. The credit reporting |
| 1. Having too many credit cards | | | | agency also has to give you a copy of your credit |
| 2. Carrying too much debt on your credit cards | | | | report once every 12 months if you request it. Get |
| 3. Carrying too many loans | | | | your credit report to find out what it says about you - |
| 4. Making late payments or missing payments | | | | and to see how you can improve your credit score so |
| 5. Defaulting on a loan | | | | that you won't be turned down next time. |
| 6. Applying for a lot of credit cards in a short time | | | | You may freely reprint this article provided the author |
| The credit card and credit score give a 'snapshot' of | | | | bio and live links are left intact. |
| your credit history. | | | | |