Since the amounts you owe make up a whopping 30 percent of your credit score, it can be helpful to make an attempt to pay down your debts before trying to get a credit card.
You’re legally entitled to one free credit report a year from each of the three credit reporting agencies. Mistakes on your report may impact your score, so you’ll want to take care of any errors before you apply for any form of credit. Regardless of when you plan to apply for a credit card, get into the habit of reviewing your credit report on an annual basis. Whether it’s through your bank or elsewhere, many financial institutions offer tools to check your credit score and identify which, if any, of these areas are weaknesses in your credit profile. New Credit (10%): the number of new credit accounts you’ve applied for or opened.Credit Mix (10%): the different types of credit accounts you have open, including credit cards, retail accounts, installment loans, vehicle loans, and a home mortgage.A credit agency looks at the age of your oldest account, as well as the average age of all your accounts. Those with a longer record of repaying loans are seen as being more creditworthy. Length of Credit History (15%): the length of your credit history.Typically, the lower your credit utilization, the better. Amounts Owed (30%): the total amount of money you owe lenders as well as how that compares to the total amount of credit you’ve been extended, called your credit utilization ratio.This includes records from credit cards, retail accounts, mortgages and other types of loans.
Whether it’s your very first credit card or you’re looking to add another to your wallet, use the information in this article to better understand the process, from preparing to apply all the way through acceptance.īefore you apply for a credit card, it’s important to educate yourself and practice good credit habits from the beginning. If your credit card application for a standard card is denied, you may qualify for a secured credit cardĪpplying for a credit card can be a quick and easy process if you know what you’re doing. Some online credit card applications let you know right away whether you’re approved Before you apply for a credit card, understand the factors that affect your credit score