Negotiating For Better Credit Card Terms
View PDF | Print View
by: barrywaters
Total views: 105
Word Count: 534
If you have a poor credit history, you may have already realized how hard it is to get a good rate on credit cards. If you regularly miss making payments on your credit card or worse, fail to pay them off entirely, you will likely be given a low rating by credit bureaus, which will in turn result in you having a poor credit history. Regardless of whether the late payments are the result of negligence or a lack of funds, the low credit score that results will make it difficult for you to get a credit card.
So how do you get a credit card if you have a bad credit standing? The best way to do this is to improve your credit score. It is fairly common knowledge that people who have higher credit scores stand a better chance of being given credit cards with good terms than people who have less than ideal credit scores. A higher credit rating will also give you the added advantage of being eligible for lower mortgage and car loan interest payments.
Here are some of the ways by which you can improve your credit standing.
Correct mistakes in your credit report. Since a mistake on your credit report can result in a lower credit rating, it is important to check these reports thoroughly before you apply for a credit card. This should be done well in advance, since correcting a mistake can take anywhere from one to three months and possibly even longer.
Pay your bills on time. One of the things that credit card companies look into when determining how eligible you are for a credit card with good terms is your payment history. Even if you have only missed one credit card payment in the past, your credit rating may be affected adversely. Paying your bills on time is the single best thing you can do to raise your credit rating.
Pay off any remaining balance on your credit card. One other factor that will have an effect on your eligibility for a credit card with better terms is the amount of your balance compared to your credit limit. If you are interested in raising your credit score, keeping your balance below 25 percent of your credit limit is a good way to do just that.
Keep your past accounts open. There was a time when the best option with regard to old accounts was to simply close them. The change in the way that credit ratings are calculated however has made it more feasible to keep older accounts open, thereby increasing your credit score. Closing your old accounts will not only shorten your credit history and decrease the amount of credit that you can have, but will also make your existing balance seem bigger when your credit score is calculated. Closing old accounts will also result in a only a slight lowering of your credit score, while retaining them may just improve your chances of getting a good credit card. Related Links Credit card application |
About the Author
Similar articles on best credit cards, link to www.getsmart.com/credit-cards.
Rating: Not yet rated