First Time Credit Cards – Credit Score
Credit is what makes this world go around. Credit is the system of buying and selling without immediate payment or security. Every company, big or small uses credit to run their business. Most individuals in this country has some sort debt, either by credit cards or with a loan (i.e. mortgage, auto). As someone applying for first time credit cards, your credit will be dictated by your credit score. You being approved will depend on the status of your credit score. Your credit score is calculated by many different factors;
1.How long is your credit history
2.How much is you credit limit
3.How much of you credit limit is being used
4.Have you been late with any payments
5.Did you ever file bankruptcy
There are quite a few more that I didn’t list, but you get the point of what goes into figuring out our credit score. There are three credit agencies that track your credit score and each one of them will give you a different score, not much of a difference, but a difference just the same. The range of a person’s credit score will start as low as 580 and go as higher as 850. The national average credit score is somewhere between 580-650, which goes to show you how bad the country’s credit is.
What can also damage your score is you apply for too many credit cards in a given period. Same thing goes if you go to buy a new car. In some cases people have been penalized on their credit score because of two different car dealers inquired about your credit in a short period of time. Of course you can just call up the credit agency and they’ll remove that since there is some sort of law that prevents you from being penalized in that manner. Even though you went to two different places, you were only shopping for one car.
Your credit score can help you some ways. The higher your credit score the lower you can get an interest rate.
So remember to keep your credit score high by keeping your credit debt low.
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