Kerry Hedden asked:
How Credit Card Companies Define the Different Credit Rating Levels of Applicants
With regard to credit scores, there are different categories in which individuals will fall. These include bad credit, fair credit, good credit and excellent credit ratings. The better the credit score of an individual, the more likely it is that the individual will not only receive favorable credit card offers but have their applications for those offers accepted as well. Credit card companies have category levels in which to group credit card applicants within and each company has their own special criteria which must be met in order for the individual to fall within a specific category. The following will provide a general summation of how the companies determine the category of an individual and what makes someone fall within the excellent credit rating category, for example.
How Credit Card Companies Determine Good to Excellent Credit Ratings
The most favorable category of borrower for the credit card companies is the individual who falls within the good to excellent credit rating. Of course, one who has perfect credit is highly desirable to a credit card company and will almost always be accepted for a credit card. In general, one who has a credit score of 650 or greater falls within the good to excellent category and many credit card companies will offer cards to these individuals. The main determining factor for credit card companies in the decision-making process related to issuing credit cards is the individual credit score. They also look at factors such as employment and annual income.
How Credit Card Companies Define Bad to Fair Credit Ratings
Perhaps the less desirable categories of credit ratings are the bad credit rating and fair credit rating. For these groups of individuals, obtaining a credit card will be more difficult to do as their credit scores may not be as high and therefore they will be declared by the company to be more of a lending risk. In general, those who have less than a 650 with regard to credit scores may fall within the fair to bad credit rating categories. Factors such as prior delinquency on payments and/or bankruptcy, may put the individual into a less desirable category as again, the risk is higher for the credit card company. Each credit card company will have their own determining factors when it comes to application acceptance and which individual falls into what category.
How to Determine Which Category You Fall Into
The best way to determine whether your current financial situation puts you in the bad, fair, good or excellent credit rating category is to choose a credit card company and then determine what their specifications consist of. This can be done by using the Internet to peruse their website or calling the company directly to see if they have certain requirements when it comes to financial categories of credit card applicants. It is also a good idea to know what your individual credit score may be as this will help to determine if you fall within the bad, fair, good or excellent credit rating category. Just keep in mind that every time you apply for a credit card, an inquiry will show up on your credit report and this could have a negative overall impact when you try to apply for credit cards and loans in the future. Therefore, do the necessary research first and then only apply for those cards which truly interest you.
Theodore
How Credit Card Companies Define the Different Credit Rating Levels of Applicants
With regard to credit scores, there are different categories in which individuals will fall. These include bad credit, fair credit, good credit and excellent credit ratings. The better the credit score of an individual, the more likely it is that the individual will not only receive favorable credit card offers but have their applications for those offers accepted as well. Credit card companies have category levels in which to group credit card applicants within and each company has their own special criteria which must be met in order for the individual to fall within a specific category. The following will provide a general summation of how the companies determine the category of an individual and what makes someone fall within the excellent credit rating category, for example.
How Credit Card Companies Determine Good to Excellent Credit Ratings
The most favorable category of borrower for the credit card companies is the individual who falls within the good to excellent credit rating. Of course, one who has perfect credit is highly desirable to a credit card company and will almost always be accepted for a credit card. In general, one who has a credit score of 650 or greater falls within the good to excellent category and many credit card companies will offer cards to these individuals. The main determining factor for credit card companies in the decision-making process related to issuing credit cards is the individual credit score. They also look at factors such as employment and annual income.
How Credit Card Companies Define Bad to Fair Credit Ratings
Perhaps the less desirable categories of credit ratings are the bad credit rating and fair credit rating. For these groups of individuals, obtaining a credit card will be more difficult to do as their credit scores may not be as high and therefore they will be declared by the company to be more of a lending risk. In general, those who have less than a 650 with regard to credit scores may fall within the fair to bad credit rating categories. Factors such as prior delinquency on payments and/or bankruptcy, may put the individual into a less desirable category as again, the risk is higher for the credit card company. Each credit card company will have their own determining factors when it comes to application acceptance and which individual falls into what category.
How to Determine Which Category You Fall Into
The best way to determine whether your current financial situation puts you in the bad, fair, good or excellent credit rating category is to choose a credit card company and then determine what their specifications consist of. This can be done by using the Internet to peruse their website or calling the company directly to see if they have certain requirements when it comes to financial categories of credit card applicants. It is also a good idea to know what your individual credit score may be as this will help to determine if you fall within the bad, fair, good or excellent credit rating category. Just keep in mind that every time you apply for a credit card, an inquiry will show up on your credit report and this could have a negative overall impact when you try to apply for credit cards and loans in the future. Therefore, do the necessary research first and then only apply for those cards which truly interest you.
Theodore
