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 THINGS you should NOT TO DO WHEN YOU APPLY FOR A CREDIT CARD


1. APPLYING FOR A LOT OF CREDIT CARDS OR LOANS.

Each time you apply for credit, a hard inquiry is generated on

your credit report when a lender checks to see if you

are creditworthy.

Each hard inquiry drags down your score.

The effects are minor  usually, three to five points.

Paying on time with a new card quickly erases the damage.

But when you apply for multiple cards at once,

lenders view this as risky behavior.

So apply for new credit cards strategically.

If you get rejected once, figure out why before you apply again.

Either settle for the card that fits your credit standing, or work to improve your credit so you do qualify.

2. Do not use up all your available credit

Your credit utilization ratio accounts for 30 percent of

your credit score. If you’re close to maxing out any

account, you’re considered a high risk to credit card companies.

The smaller your credit utilization, the better

it is for your credit score. According to FICO, those

with the best credit scores on average use less than

7 percent of their credit limits.

3. Don't Miss PAYMENTS

Only hard inquiries when a lender looks at your

credit when you apply for a loan or credit card have

a negative impact on your scores, and the effect is

small and temporary.

Your payment history accounts for the biggest

chunk of your credit score, weighing in at 35 percent.

Paying bills on time for as little as one month can raise

a modest credit score by 25 points.

4. YOU HAVE TOO MANY SUBPRIME LOANS ON YOUR REPORT.

Subprime lenders are companies which market financial products to people with bad credit. Subprime products tend to carry much higher interest rate

Lenders “look at what types of Lenders you are doing business with, and some of them take issue with applicants who come in with a portfolio of subprime lenders

5. TOO MANY RECENT APPLICATIONS.

Too many recent applications can be perceived as desperation for credit and this could indicate that you're taking on too many accounts in a short period of time, 

Some credit card issuers deny cardholders who appear to be  churning credit cards—that is repeatedly opening credit cards to earn the signup bonus.

6. JOINT ACCOUNTS AFFECT YOUR CREDIT SCORES, BUT THERE AREN’T JOINT SCORES

If you open a loan or credit card with a partner, the account

activity will be reflected on both your credit reports.

Joint accounts are different than authorized users,

but whenever you share credit, make sure you’re aware

of who will be responsible and who will be affected

if a payment is missed.

7. NEGATIVE INFORMATION EVENTUALLY AGES OFF

Different kinds of negative information will remain

on your credit report for different periods of time

(bankruptcy is an exception to this, for example),

but generally, negative information ages off your

report and no longer affects your score after 7 years.

8. CREDIT SCORES AREN’T THE ONLY THINGS THAT

MATTER FOR LENDING DECISIONS

A credit score isn’t the only thing lenders consider

when reviewing applicants.

If you have no credit or poor credit, you may

be able to secure a loan through an alternative

lender, and in some situations, making a personal

appeal or giving a lender more context to your credit

report can help you access financial products.

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DID YOU CHECK YOUR CREDIT SCORE TODAY?

Checking your score will not hurt it
How to achieve a good credit score


A WORD OF CAUTION ABOUT TRAILING INTEREST


Trailing interest is the amount of interest that adds up between when a credit card bill is sent and when payment is received. 

It is also called Residual Interest.. It only applies when you carry a balance on your credit card

How do you get credit when no one wants to give it to you?

Why Its Important to know your score

To improve your score,

 To apply for a credit card

To apply for a mortgage, 

To apply for a rental To apply for a car loan, 

To apply for a personal loan

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