How Your Credit Scores Affect Getting Credit Cards

You've seen this great offer for instant approval credit cards and you're all excited. After all, you were denied for a credit card in the past and were about to give up until you seen this offer. It states that they'll approve you instantly for one of their credit cards, right? Unfortunately, this may not be the case. What they're actually offering you is a credit card right away IF you are approved, which is determined by your credit scores or credit rating.




What Determines Your Credit Scores?
 
A number of factors determine your credit scores:
 
·         Total number of debts still unpaid
·         Balances in ratio to credit limit
·         Length you've had each account
·         How you've paid these accounts
·         Number of inquiries into your credit history
·         Any judgments, collections or bankruptcies in the past
 
Credit scores can range from the 300s up into the 800s. An individual with credit scores in the 300-400 range either has no credit or has very poor credit while someone in the 700-800 range has very good credit. Your credit score is actually determined by a mathematical formula based on the factors mentioned above.
 
Before you apply for instant approval credit cards or any type of credit, you should get a copy of your credit report so you know where you stand financially. Often there are mistakes on your credit report that may be affecting you negatively. You may find an open account on your credit report that's not yours or that has been paid off already. It's actually not all that uncommon to find errors on a credit report and it's best if they are found by you and not a lending institution. This way you have an opportunity to contact the credit reporting agency and clear up the mistakes.
 
How Credit Scores Affect a Credit Card
 
Credit scores determine not only if you're going to be approved for these instant approval credit cards but they also determine what kind of terms and benefits you'll get with the card. An individual that has a credit score of 600 may be approved for the same type of credit card as someone with a score of 800 but their interest rate is probably not going to be the same. The better your credit scores, the better benefits you'll be offered. Benefits such as 0% intro APR Balance transfer, cash back, rewards and no fees are generally reserved for the individuals with high credit scores although each credit card company varies. So, always be aware of your credit scores before applying for instant approval credit cards or any credit.
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