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Making an unsecured credit card application requires you to know something about your credit standing before you apply. This understanding will help you decide which offers give you the best rates and the most benefit. The application process is simple and can be completed by following these tips, which should help improve your approval rate.
Know Your Credit Score
You should know what your credit score is before you apply for an unsecured credit card. The credit score is a measure of your creditworthiness and is maintained by three reporting bureaus, Trans Union, Equifax and Experior. The scale of acceptable scores for an unsecured card varies by issuer. The typical range is between 620 and 90. Having a score lower than 620 will not allow you to qualify for an unsecured credit card.
Each of the three reporting bureaus must provide you with a free credit report at lease annually, according to Federal law. It is a good ideal to monitor this report and dispute any discrepancies or inaccuracies that appear. Keeping a good clean credit report will mean that your score will remain sufficiently high to be approved.
Make Sure Your Debts Are Current
Any debt that you have is looked at as a measurement of your creditworthiness and factors into your credit score. Late and slow pays affect your credit score and make you more of a risk when attempting to obtain an unsecured card. Avoid this problem by doing the following:
- Make arrangements to pay off old debts
- Keep current on any ongoing or new obligations
- Stay within your budget
- Consolidate debts when necessary in order to reduce interest charges
As you search for an unsecured credit card, choose the card that fits your needs and spending habits. It is not necessary for you to choose a card that offers many benefits like airline and hotel miles if you do not travel. Instead, seek a card that has a low annual percentage rate or APR. The APR, which consists of the card’s interest rate and fees, should be reasonable, preferably under 10 percent.
Read the fine print for offers of 0 percent APR that balloon to a double-digit amount after 6 months or 1 year. These teaser rates are designed to bring you in a new customer and get you later on with excessive fees and charges. Make sure that you compare rates on an apples-to-apples basis and ask questions before sending in an application.
