Many people have questions when they obtain a credit card - which is the very best for me? How do they decide to give me credit cards? Why do they need to know each one of these things about me? What does it mean to become pre-approved? What could make the card organization decide not to give me credit cards? It's not all that mysterious a procedure. Companies make their decisions based in your credit score, which is derived out of your credit report and other information they may have about you. Your personal credit record is maintained by reporting bureaus -- the Big Three are Equifax, Experian as well as CallCredit. Each maintains a separate credit rating, and as a general rule, they don't share information with one another. Your credit file may contain might details like: - People on the electoral register at the address- Details of late payments or non-payments on any loans- CCJs and bankruptcy purchases against you- All your applications for credit- Other individuals wh
o share your addressThe credit reference agency does a maximum of supply the information on your credit rating. When you apply for a charge card, the company that will issue that card takes your credit history and feeds the information in it into some algorithms - mathematical equations - that compare your data with the information about a make believe 'ideal customer'. That customer has certain traits - a specific wage, a certain number of charge cards, a particular marital status, own a house or rent one, be living there for a certain period of time. The closer your own traits are to that particular ideal, the higher your credit rating or score is going to be. The higher your credit rating, the more credit card issuers would be pleased to have you like a customer. Before you apply, it's to help you to shop around for the best charge card for you. It is NOT to help you to just apply willy-nilly to any charge card offer that strikes your fancy. It is not true that 'the worst
that may happen is they'll say no. a There's another, not-so-obvious consequence to charge card rejections. You might have noticed that among the things that appears in your credit report is a summary of your applications for credit. If that list is too much time, it will be a negative mark inside your credit score, making it harder to get the credit card you want. That's why you need to shop around before applying - and also the best is one that is almost certain to approve the application. Some reasons your application may be rejected: - You've applied for a card that targets individuals with higher credit scores. Most companies that issue credit cards have a number of them - they call them 'credit products' - each targeted at a different market. A reward charge card, for instance, often targets those using the best credit scores. At a charge card comparison site like moneyeverything. com, you can examine each credit card offer to see if it's aimed at those with excellent
, great, fair, poor or bad credit, and apply for the one which best applies to you. - You have no credit history. Believe it or not really, never having borrowed money before can function against you when you obtain a credit card. If you have no history of getting paid bills, then the company has no way of judging whether you'll pay their account. - You've not experienced your current job or residence lengthy enough. One of the pieces of the credit score puzzle is how stable you're, and that's judged by how long you've experienced your current residence or position. Whether it's less than two years, it would have been a negative, even if there's a valid reason for it. - You've applied for a lot of other credit cards and loans. This is one reason to be certain you only apply for the best credit card - the one which you're most likely to be authorized for. If you've applied for many charge cards in a six to twelve 30 days period, the companies may see it as a sign that you mig
ht be in financial trouble.
Jon Francis may be involved in various areas with the planet of finance and has a keen eye for any bargin! He has an in-depth understanding of the credit card UK market and today helps others get the best from the credit card. To learn more visit "http: //www. moneyeverything. com".
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