Doing a credit card comparison is of no use if you are not aware of how your credit scores function and how they impact your credit report.
What Is A Credit Score? This is basically just a number that indicates the amount of risk attached to you as a borrower. It is the likelihood expressed in a number that denotes just how capable you are of paying your bills on time. For example, Vantage Score or a FICO score is going to predict the likelihood of how capable you are of paying off any credit obligation in your name within the stipulated time period, before it begins to incur any late fee or additional interest. There are different mathematical models which are also called scoring models and are used to determine your credit scores. Using Secured Credit Cards If you have bad credit or absolutely no credit, banks and financial institutions will consider you a risky borrower. You will not be issued a traditional credit card that easily. But you may be able to get a secured credit card despite having any past credit issues. Opening a secured credit card account is possible if you make a deposit to establish your credit limit. For example, depositing $200 after applying for a secured credit card will get you a limit of around $200. You will also have to provide bank account information on this application so that the credit card issuer can withdraw the security deposit if and when your application is approved. What Is Actually A Credit Report? In the simplest words, your credit history when recorded on file is your credit report. There are three major credit bureaus which are also known as credit reporting agencies and every credit card holder in the United States has to make efforts to come into their good books, almost literally.
These credit bureaus collect and maintain data / critical information about your credit history. They store each detail in the form of a credit file and these can be conveyed to you or someone else who has a permissible purpose to access these reports. This is called a consumer disclosure if you are requesting the access and a credit report if someone else is requesting the same. This report is generated from the information found in your credit file. Before you begin with your credit card comparison, you should know that your credit reports are going to contain critical information about your accounts, both your past and present, your payment history, and a lot more.
0 Comments
|
Archives
June 2020
Categories
|