A credit score is a numerical expression based on a statistical analysis of a person’s credit files that shows the creditworthiness of that person. So it is important to have a good credit score so you can have lower rate, smaller monthly payment, and speed up credit approval. So it is very essensial to increase your credit score. To know how to increase your score, you need to know how it is calculated. Many lenders use third party credit scoring system such as FICO to evaluate the credit worthiness of a borrower.

If you are using FICO (the most widely used in the mortgage industry). You should understand how FICO calculate your score. They will look into:

1. Payment history (35%). The better you have good payment history, the higher your score. So tips #1: Do pay your bills in time.
2. Amounts owed (30%). The more amounts you owe, the lower your score. Tips#2: Keep your credit card balance low, and pay your debt.
3. Length of credit history (15%). Longer credit history will have higher score. Tips#3: Don’t open a lot of new accounts.
4. New credit (10%). The more you have new credit, the lower your score. Tips#4: Don’t open accounts that you don’t need.
5. Type of credit used (10%). If you have a mix of credit types like credit cards, mortgage, or auto loan, you will have a slight higher score. Tips#5: If you need it you can apply for other credit types. Don’t apply just to raise your score. Remember it only counts for 10% having mix of credit types.

Another thing you have to know is FICO allows “rate shopping” / applying to many lenders for the same loan to obtain a better rate of interest and other terms like repayment schedule. If you use rate shopping, multiple lenders will request your credit report, even though you’re only looking for one loan. FICO® scores distinguish between a search for a single loan and a search for many new credit lines. You can avoid lowering your FICO® score by doing your rate shopping within a short period of time, such as 14 days.

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People these days have got the tendency to acquire things which in fact they actually do not really need. Various technological services and gadgets came into being which in turn targeted a huge market of buyers and this surfacing of new gadgets and things have actually made the people blind.

Since money has become a major concern for us, the people, a new range of financial options and services have emerged. The most known and never finishing mode of financial management option is the credit card.

Although credit cards might offer you convenience and even many people would even vouch for it, it does not actually mean that such conveniences may not actually apply for you or any one for that matter.

There might be several reasons on why someone applies for a credit card. It could be for preparing for a bigger expenditure, or needing more money or even to well manage the finances. Although there may be such different reason to apply for a credit card but one major reason could be the convenience it could bring in. Right now you would have got your own pre-approved or yet to approved credit card offers got junked in your regular mail as well as your email. Because some people are easy to fall prey any credit card companies attract such people by offering no annual fees or low APR and many such offers to them. Mostly these offers are to get the people that are wishing to apply a credit card to sway between deals.

There is no doubt that there too numerous to count pros as well as cons attached to it when you are applying for a credit card, but there are some tips and guides given below which can help you a great deal if you have indeed decided to get yourself a credit card.

There really are three easy to follow steps or rules that you will need to follow if in fact you have decided to apply a credit card. The initial rule is to do the necessary research on the credit cards at the net. If you could do this, you are actually getting yourself familiarizing with different types of credit cards and its types and terms. Secondly you would be able to compare various credit cards that actually would serve you better and also you would be able to apply for a credit card just by filling up the application for the credit card either through online or through a bank representative.

Just make sure that you have indeed become an expert when it comes to knowing the credit card terms to find the ideal credit card the easy and faster way before in fact you apply for the credit card. Before applying for a credit card you must be knowing what exactly is this credit card. Since it involves various charges and conditions as it is just a form of a borrowing option you must know about these before you actually apply for a credit card. Hence it is advisable that you just compare all the fees and
terms involved. Make sure that you know the terms like APR or annual percentage rate, etc.

Before applying for a credit you should know the effects of APR in your credit account. Since it is just a cost of credit which is actually mentioned in an yearly rate, it should clearly be disclosed before in fact you apply for a credit card hence you will not need to be obliged to the bank later. Apart from the APR, the annual rates and other rates should be mentioned to the card holder before you in fact apply for the same, so that the customers would know about the total outstanding available on their credit card. The next most important terms you should know are the interest free period, transaction charges and annual fees involved with these credit cards and other fees and charges involved with your credit card.

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Are you really a newbie in terms of credit cards or you already own a credit card and know a thing or two about them? Anyway you should be knowing that it would take more time than you would imagine to get your credit card application processed.

For the newbie we will see the stage in which how the credit card processing takes place and why does it take so much time to get it processed, etc.

One of the most important thing that your credit card company look into during the stage of processing of your credit card application is that whether you have any account with any other credit cards or not. This is actually the part in which where the credit card company or the bank people will get to the bottom of it to find your records with them. This process will also include for how long did it took for your other credit card to be processed when you applied for the same last time. This actually would mean that they are trying to find out what is your real worth is. You would actually be categorized into subgroups. They will decide here whether are you a good re-payer or whether they would need to toil around to get they payment from you.

If it happens during the processing stage of the credit card they would require your alternative address in which they will have to send the credit card bills and this way they will know that you will indeed pay and they just want to make sure the same. And if you have indeed crossed this stage involved with credit card processing without any major damages then the other step would be find whether you have any unpaid money from other bank’s credit cards or any credit card processing going on with other banks or not. This would simply mean that they are trying to find out your credit card repayment history. This is done to find out whether you do indeed have the better repaying capacity. If you were able to pass this stage unscathed then the next stage would be to find whether you are indeed a US citizen or not. This was due to the latest US Patriotic Act those are trying to get any other thing available in the US they will need to verify their identity because they really did not want it to go in the wrong hands.

The final part involved in credit card processing is to confirm whether all the things are in order and were indeed meeting their standards. In summary, in order for you to get a credit card and its process you must meet the criteria of owning another bank’s credit card if they are active. Secondly you should have been a good payer and thirdly you must be a US citizen.

Although you may have problems and issues when applying for a credit during the processing period, it actually would be a worthy wait. If used efficiently and correctly credit cards can in fact turn into a great tool for your financial needs. It can help in managing ones finances very well. They also bring you convenience since you do not really need to carry money or checks anywhere and everywhere.

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Credit card has always been known by its other name plastic money by people around the world. With the fast paced lifestyle we follow, and with the current economic situation we all want everything to be done in a fast way. This is the reason right from the young professionals to business men and bankers to students are fighting it out to get themselves a credit card of their own from many of the trusted banks or credit card companies.

Credit card applications have indeed take up with the need to get the cold cash and also many are even trading their hard-earned money to give a shot at the charge-it card. Responsibility is what we have been unaware of when it comes to applying for a credit card. Hence when you are planning to get yourself a credit card of your own and even before filling the necessary forms or applications to get the credit card you should be knowing all the counter measures and precautions you should take after you have been approved of the credit card. We all know that it would take ages for the credit card companies to approve our credit card application and also with the recent US Patriotic Act it has become even more difficult to get it approved with the further verification that is involved with to verify your US citizenship. Because of the significance of owning a credit card has become the topmost priority for many in US, they are actually willing to undergo this tedious procedure to own a credit card.

Owning a credit card has become an important aspect in an average American. As he/she owns at an average of at least five to six credit cards and most of them even use them on an average of at least once a day. With such numbers, there is no surprise that there are around 1000s of credit card applications that is being processed currently on a single day. And this rate is surely expected to rise sooner rather than later.

The need to own a debit card or credit card are indeed real and the banks or credit card companies should actually be open to have more applications for the credit card that might actually increase in the very near future. It is indeed important that people are taught on how to use a credit card properly as it is actually their hard earned money that they are spending in such a manner. Hence be ready to fill out the application for the credit card with enthusiasm filled with caution.

Although there may be instances where you might have got the pre-approved credit cards to your mailbox but still you would need to fill in the credit card application as well as the form for acceptance. The reason behind this is the fact that the banks would need to check the identification of the individual that the card has been sent. As also many banks or credit card companies offer the option of applying for the credit card online you can do so to make it easier and convenient as well as faster for you to get the credit card approved.

When you are actually filling the credit card application form, apart from your personal details like name as well as contact details you should also look into the other important facts like hidden fee, offers and other important terms and conditions to make the credit card processing and owning a pleasant experience for you. With these tips and suggestions you can easily make the credit cards work for you rather than the other way around.

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