Credit Rating: How It Will Affect the Card You Get

Credit Rating: How It Will Affect the Card You Get

It is common knowledge that your credit card payment habits will affect your credit rating. If you use your credit card a lot and pay all your credit card bills on time, it will improve your credit rating. On the other hand, each time you go over limit or pay your bills past due, your credit rating suffers. And quite obviously, falling into credit card debt will surely hurt your credit rating very badly. However, do you realise that it is also the other way around? That it is not only your credit card habits that will affect your credit card rating, but that in turn your credit rating can affect the credit card you get?

The effect of your credit rating on the credit card you get is very simple. The better your credit rating, the more credit card choices you will have. This is because of the simple fact that your credit rating a measure of your trustworthiness when it comes to paying off your bills and loans. Hence, the better your credit rating is, the more trustworthy you will be in the eyes of credit card companies, and the more likely they are to approve you for their best cards. Credit ratings are the reason why you might be qualified for the best credit card a company has to offer, while your friends, who makes the same amount of money as you do, will not.

Aside from being the deciding factor on whether you will be qualified for the best credit card that companies have or not, your credit rating also determines your credit limit and annual percentage rate (APR).

Even if two people may hold the same kind of credit card, their credit limit may vary greatly due to their credit ratings. However, when it comes to credit limit disposable income is an equally huge factor. After all, even with an excellent credit rating, if your disposable income is quite meager, you can not expect to be extended the same amount of credit that a millionaire will be given.

When it comes to APR though, credit rating often does play a bigger role that your disposable income. Your credit rating reflects your dependability in paying your bills. If you have a good credit rating they know that lending money to you is not that risky, so that they will be willing to charge you lower interest rates. This means that by having a great credit rating, you not only get the best credit cards Ireland companies have to offer, but also the best rates for whichever card you have.

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