What Credit Rating Scores Tell a Potential Lender

by Courtney Jaden

Do are all those credit card companies intent on filling your mailbox with a bunch of credit card offers? There are so many companies who want to benefit from your spending that it has become somewhat easy to apply for a new card.

But offers are one thing; getting approved for a new card, on the other hand, that’s another story. Credit card companies usually have strict requirements, even if they seem to send credit card offers to just about anyone. One of the things they pay close attention to is credit rating scores.

You can improve your credit rating scores if they aren’t very good, but it’s not going to happen overnight. Improving your scores takes time and work, just like anything else. However, you’ll have a much easier time getting approvals once you have a good credit score built up.

There’s no way around it: It’s a must if you want a credit card. Now you may be wondering, how can you improve your credit rating scores? You can do at least three things to get things started.

One of the best things you can do right now is always pay your bills on time. To maintain good credit rating scores, and to get approved for a new credit card, you need pay all your bills before they’re due.

If you ever happen to pay late one month it is not like the world will come to an end. There is still hope for you to get a credit card as long as those late payments do not become a trend. When you are able to consistently pay your bills on time over several months, your credit rating scores will go up.

Have you ever been tempted to cancel old credit cards you never use? As odd as it may sound, this is really not the best thing to do. Each and every credit card you own just keeps contributing to your credit score. A credit card shows potential lenders that you have funds to pay them back if necessary.

So your second tip: Keep all your credit cards, even the ones you don’t use and are still paying on. By paying all your bills on time, your score will improve, which in turn makes it a lot easier for you to get approved for a new card.

The last recommendation is to not max out the credit limit on your current credit cards. If more than 50% of the limit is used, it is likely that your score will drop.

Staying below 50% will not only help you maintain a higher credit score, it will also help you maintain bills. Hopefully, these few tips have helped you understand how your credit rating scores affect your eligibility for a new credit card. Now go out there and get that credit score up.

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