Deciding to get a credit card can be a big decision for anyone. The hardest part of it is keeping up with your credit score and knowing what kind of credit you actually deserve. Many individuals try and apply for credit cards and then wonder why they get turned down or why they were given such a high interest rate. It is extremely important to know what your credit score means and what range you are in. This number can impact a number of important decisions in your life so it is crucial to know what it means and how to improve it.
Credit card companies do not want to give a credit card to someone who cannot pay their monthly bill. So having a good credit score is important if you want to be offered a credit card with a good interest rate. A credit score is determined by weighing out different aspects of a credit rating such as amount of credit history, number of different credit inquiries, years with credit history, and so on.
You are considered to have bad credit if you fall into the 300-629 category. If you fall into this category then you will probably only be able to obtain secured credit cards. 630-689 would put you in the fair category. If you are trying to obtain a home you may have to come up with a higher amount for a down payment. 690-719 is considered good credit and you can get approved for most credit cards but maybe not the high-end credit cards with the really low interest rates. 720-850 scores give you special treatment with an excellent credit rating. You will get special treatment and get the best rates on any type of credit.
If you do not have the best credit there may be some options available for you. Your best bet is to start out with a secured credit card if you have bad credit. This will help to reestablish your credit and if you make timely payments even give you the opportunity to obtain an unsecured card. Credit card companies such as Capital One and First Premier Bank both offer secured card options for their customers with the option to move up to an unsecured credit card with six months of on time payments. Both of these cards have low annual fees and report to all credit agencies.
No matter what your credit score is there is always an option to get you back on your feet. Make sure you keep track of your credit score and any changes to your credit report. It is crucial for your future and can impact many future plans you have for you and your family.