Every day consumers across America receive credit card promotional offers that seem to be a great deal. They promote 
low interest rates and special rewards programs that many people end up not being able to resist. If you are new to the credit card game or even an old hat, you should know that the times of easy credit card applications are over. The bar has been raised and if you don’t meet the new requirements, you may very well be denied for a credit card. Many times, one rejection will lead to other unnecessary applications that are also rejected. Too many applications and too many rejections can actually reduce your credit score. This is the last thing you need to do with your credit.
The Importance of the Score
Credit scores have long been the great determiner for getting approved for lines of credit, mortgages, and other types of loans. In the last few years, a credit score of around 700 used to be good enough to sit you in the ‘excellent credit’ category. However, with the recent problems in the economy and the credit card and housing industries, there have come changes to the credit score calculation as well. Now to be considered credit worthy, creditors and lenders want to see minimum scores of 720 and above in order to be approved for credit.
Many rather live in the dark about their credit score for fear it will be too low. However, unless you know where you stand, you can never be sure of your financial situation. You should never apply for new credit or loans without first checking the current state of your credit history and score. Everyone is entitled to a free credit report once a year but additional history reports and credit scores do charge a fee to have access to your information. You are also eligible to receive a free copy of your credit history each time you are denied credit. Realistically you should never let it go this far. Instead, if you don’t know what your credit looks like, contact the two credit reporting agencies, Equifax and TransUnion, to get a copy of your report and your score. It will cost around $15 to get your score.
Review Where You Stand
When you get your credit history, take the time to review it. Often there are errors on the report that will reflect badly on your history but which can be corrected by filling out the appropriate paperwork. If you don’t correct the mistakes, your credit will continue to suffer. Evaluate what the report tells you about your credit and follow the advice given, such as if you are late on your payments make a point to focus on always paying on time each month. In a few months, go back and request additional reports and scores to see how you have done. If your score has been boosted, then consider applying for the credit cards or loans.
If you pay attention to your credit and know hat your report is saying about you, you will be able to make more intelligent financial decisions and choices for yourself, allowing you to keep good credit without much extra effort.
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