subject: What You Need To Know About Your Credit Score And Credit Cards [print this page] In this time and age getting a new credit card shouldn't be considered as something out of the ordinary. Currently, there is a great deal of rivalry between financial institutions, which in search of bigger profits, try to win over as many customers as possible. In addition, more and more people consider a credit card as a quick fix to their damaged credit score. Credit cards when used wisely can put you on the right finance track in a nick of time.
You may feel like you need a credit card buy because your credit history is poor you're not sure if you can get one. Even if you were rejected in one place that does not necessarily mean you won't qualify for a new card somewhere else. There will be dozens of other institutions willing to turn a blind eye just to get you on their balance sheet. The catch? The riskier you are to the lender, the higher charges and interest on your plastic. The trick is to get a good deal without putting too much strain on your finances.
What you need to understand is how to strike a right balance between your credit score and your credit card. Having a credit card is good for your credit history but it has to be used responsibly. Repayments should be prompt and aimed at reducing the outstanding balance. While keeping too many credit cards can be a deterrent as too much debt gets in the way of fairer charges and interest. In no circumstances close down all your cards, card history is lodged against your credit report and once removed it will have a negative impact on your score.
If feasible by all means make some purchases on your card, but always ensure your balance goes down every month. It will be a good indication to your credit score that you can borrow money and repay them on the dot. In time, this should guarantee lots of extras such as cash back, rewards programs, balance transfer deals, and interest free shopping periods. Lastly, why not keep a frequent vigil by using credit score calculator? It might be interesting to see how your actions are reflected in the credit score movements. Or perhaps you could develop your own tactics on tackling a poor credit history?
Having a good grasp of the credit card and credit score relationships is the cornerstone of healthy finance, both in terms of building up a more positive credit profile, and enjoying the convenience of a credit card.
What You Need To Know About Your Credit Score And Credit Cards
