To Close or Not To Close (Credit Card Accounts)? – Jake, Amir and Experian
Did you know that there are many different factors that can affect your credit score? Would you believe that applying for a credit also affect your score?
Well get to understand more on how this may affect your score by opening or even closing a credit. This video will guide you on how you can have a better learning experience regarding credit.
This will entertain you by providing you a real life situation by a well know celebrity star that actual share experiences about credit score.
So enjoy and learn more To close or Not to close (Credit Card Accounts)? – Jake, Amir and Experian.
You Can Get A Good Credit Score With Bank Secured Credit Card
Bank secured credit cards are ideal for those who have no credit history or for those who have bad credit scores. Since banking or financial institutions will not grant you any loan facility or credit cards if you have no credit history to check against. Since credit history and credit score are important, your initial course would be through bank secured credit cards.
Bank secured credit cards are also extended to individuals who would like to repair their credit scores by keeping their credit reports active with new rounds of credit transactions and manifest their rehabilitated paying habits. A person may have gone through a trying experience that affected his or her capacity to pay. A major illness perhaps, a divorce or sudden loss of job are situations beyond his control which caused him or her credit score to drop from good to bad.
In some cases however, a person was simply too reckless with his spending habits until every credit purchase caught up with him. A declaration of bankruptcy was his only way out. However, these persons are not doomed for life since some banks will still take the risks of extending credit facilities through bank secured credit cards. In fact, they have very minimal risk exposure via this type of credit card since the individual will be required to put up a bank deposit account. The bank deposit account should maintain a balance, usually 0, which will be equivalent to the cardholder’s maximum credit limit. Depending on the cardholder’s history, the credit limit may be equivalent to 100% of his deposit or can even be less.
The only objective of the bank secured credit cards is to provide a credit facility that the cardholder can use to create a new credit history that will eventually overwrite the bad credit score attached to his report. It may take 5 to 7 seven years before the bad credit score can be removed in a person’s credit reputation. For those who resorted to bankruptcy declaration, it will take about 10 years from the date bankruptcy was declared before the bad credit score can be removed.
The cardholder will be prevented from incurring additional bad credit points in bank secured credit cards. The maintaining deposit will be applied in case the cardholder fails to add additional funds in his account as payment for his current credit obligation. There is a price to pay though, because the cardholder will be hit with considerable amounts of bank charges. Naturally, he will be required to replenish the maintaining balance of his security deposit in order to continue with the use of his bank secured credit card.
There are banks however who will reward a cardholder for good credit records by increasing the amount of his bank secured credit card limit, although with an equivalent increase in his bank deposit balance. What is important however is for the bank to report your good credit performance to the credit monitoring bureaus. Otherwise, all the additional costs on your bank secured credit card purchases as well as the fees and charges you have paid for will all go to waste. Your bad credit score will not change unless these reports reach FICO through the credit monitoring bureaus.
FICO or First Isaacs and Co. is responsible for tabulating all the points created by your bank secured credit card history and the company can only use the information supplied by any of the three bureaus namely Experian, TransUnion and Equifax.
Be wary of banks or credit unions that will charge you with unnecessary fees just to have a bank secured credit card. Checkout Bankrate.com for a comprehensive list of credit card companies or credit unions that issue bank secured credit cards for reasonable interest rates.
For more useful information, please visit our website: THE KNOWLEDGE BASE, and look for the BUSINESS & FINANCE section.
Written by ja_schmidt
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How long will credit score take to return to normal after opening a new credit card?
Question by Jared: How long will credit score take to return to normal after opening a new credit card?
I recently opened a new credit card and noticed that my fico score plumetted 50 points after doing so. How long will it take for credit score to get over the fact that I opened a new account and regain those 50 points?
Best answer:
Answer by chic_chic1989
1. How many credit cards did you open within the past 12 months? If you open 2-3 cards in a year, this flags you as a “high risk” for lenders.
2. Have you checked your credit report? Are you sure you’re not missing any payments? This also could lower your score.
I would suggest for you to check your credit report and see what’s going on. It’s weird that your score went down for 50 points after opening a card. There are a lot of factors to determine how long and how much your score will go up so it’s hard to tell. As long as you keep your cc balance low, your score will go up little by little.
Give your answer to this question below!
Improve Less Than Perfect Credit Score and Repair Credit Card Debt
Article by New Credit Applications
Improve your credit score by repairing credit card debt even if you have less than perfect credit. Alleviating credit card debt is the best way to repair your credit score and improve your less than perfect credit. Once your credit card debt is repaired your credit score will improve thus allowing you to once again obtain new credit cards and receive instant approval online.
There are five simple steps to improve less than perfect credit by repairing your credit card debt. Following these simple steps to repair credit card debt can improve your credit score by nearly a 100 points.
The first step to improve your less than perfect credit score and repair credit card debt is to obtain a copy of your credit report. Pull your credit report from all three bureaus to see what is negatively impacting your credit score. You can obtain a free credit report annually from http://www.annualcreditreport.com.
The 2nd step is to reduce the number of credit collection accounts that are negatively impacting your credit score. These negative credit marks will hurt your chances of obtaining a new credit card. After reviewing your credit report write a dispute letter to each credit card bureau (Experian, TransUnion, and Equifax) via certified mail. Dispute every credit collection or negative credit card account that is listed on your credit report even if the account are in fact legitimate. Credit card companies and creditors have 30 days to respond to the bureaus to state that the negative items are in fact owed by you. If they do not respond they have to drop the negative credit accounts or collection items from your credit report thereby improving your less than perfect credit almost instantly. It’s also best to send in dispute letters during holiday months when they are understaffed and overworked. You can also request that any old accounts (older than 7 years) be removed from your credit report. They have to do this by law, but don’t have your oldest credit card account removed if it’s not negatively affecting your credit score. The longer you have established credit the higher your credit score will be. This ultimately will improve your less than perfect credit by boosting your credit score significantly. Most people experience a 100 point increase in their credit report from this step alone.
The 3rd and most important step in repairing your credit card debt is to establish two new lines of credit instantly. There are several new credit cards to choose from with different perks and APR’s. You can compare new credit cards and complete a new credit card application online http://EasyCreditApp.NewCreditApplications.com/ for instant approval on most applicants. Applying for new credit can initially lower your score by just a few point due to the number of inquiries that post to your credit report so only apply for credit cards that you have a better chance of obtaining. You can start with a prepaid visa that has a built in credit builder program designed for people with poor credit.
The 4th step in repairing less than perfect credit is to maintain a good standing with the new lines of credit you recently obtained from New Credit Applications. As a rule of thumb its best not to purchase anything on credit that you will not have when the credit card statement arrives or only charge something that you pay each month anyway like your electric bill. Charge it and then pay it off as soon as the bill arrives. Don’t use your new credit cards for anything else. Put them in a drawer and forget about them. Remember the key is to keep them in good standing not to charge things that you cannot afford or that you will not be able to pay for in full when the bill comes in. Learning responsibility can also play a key role in repairing your credit card debt. Which most of us learned the hard way and believe that once we are able to get a second chance we will look at credit in a whole new way.
The 5th and final step is to routinely monitor your credit report and credit score. Your FICO score is the most important number that your creditors see when deciding your credit worthiness. My personal favorite is http://www.myfico.com for the best score watch system that is available today. You can also obtain your score for free at http://www.creditkarma.com, but it varies from the official FICO credit score.
New Credit Applications is committed to helping those who don’t have a credit card or who have had credit lines taken away in the past. Easily apply online for instant approval for the credit card that most fits your needs!
You may also be interested in WalletHub, which recently became the first and only website to offer free credit scores and full credit reports that are updated on a daily basis.
Whats my tips to get a new credit card (whats my credit score)
Article by Shane Lee
This article is about questions like: how to get my first credit card, whats my credit score, how to check my credit score, etc.
For the people who has a poor credit score or don’t establish his/her credit history yet, it is hard to apply for the loans or new credit cards. Actually there are still some opportunities for these people to improve their credit scores. ( you can get “whats my credit score” info from Whats My Credit Score Dot Travel2ChinaInfo Dot COM )
1. The shopping credit cards from the department stores or shopping malls
Usually, the department stores and shopping malls will encourage their customers to apply for their own credit cards. Although these credit cards can only be used for shopping in these places, they are still the real credit cards, which can help you to improve your credit score or establish your credit history. These credit cards don’t have a high credit limit and they are not difficult to get because of this low credit limit. (the low credit limit means low risks for the companies) You can use these shopping credit cards to gain a better credit score by always paying your credit card bills on time. Once your credit score is improved, you will have much more chances to get loans and other good credit cards.
2. Get your first credit card by opening a checking or saving account first
In the U.S., the big banks have many branches in the big cities. These bank branches provide a lot of services and will love people to open checking or saving accounts in them. They often come to the colleges to do the promotions. For the students who don’t establish their credit history yet, this is a good chance for them to get their first credit cards. Because the purpose of these banks is to absorb deposits, you can open a checking or saving account first. This will help you to get your first credit card. These credit cards will not have a high credit limit of course. But they are still a good choice for the students or people with poor credit history to improve their credit scores. If you are a college student, usually, the local banks will do some promotions at the beginning of each semester. This will be your good time to get your first credit card.( you can get more “whats my credit score” info from Whats My Credit Score Dot Travel2ChinaInfo Dot COM )
3. The credit cards for students
Now the banks and credit card companies pay a lot of attention to the student credit card market. They have many student credit cards now. For those college students, you can find the materials for the student credit card application in the bulletin board of your school. These materials will help your to get your first credit card. Usually, you will need to send your student ID copy, registration certificate copy, tuition bill copy, etc to the banks or credit card companies. These will prove your pupilage and you will have a good chance to get your student credit card from them.
4. Find a cosigner
Why is it hard to get a new credit card for the people who has a poor credit score or don’t establish his/her credit history yet? Because it is risky to give them credit cards when the banks and credit card companies are not sure whether they will pay their credit card bills on time or not. In this case, you will get your new credit card much easier if you can find a cosigner who has a very good credit history and credit score. He/She will be responsible to pay your credit card bills if you don’t do it on time. You can use this method to establish your own credit history or repair your credit record. When your credit score is better, you can apply for your own credit cards (without cosigner) then.( you can get “how to check my credit score”, “whats my credit score” info from Whats My Credit Score Dot Travel2ChinaInfo Dot COM )
5. The pre-approved credit card
Sometimes, you will find some pre-approved credit card application materials in your mail box. Because they are pre-approved credit cards, you will get them for sure if you submit your application. But these offers are usually sent to the people with good credit history and credit scores in my point of view. I never receive these kind of offers when my credit history is still very short. Now my credit score are very high and I receive these kind of pre-approved credit card offers every week.
6. Credit card from the credit union
My first credit card is a Mastercard from a credit union. You will not be able to get a very good credit card from them, like 5% cash back, $ 100 bonus, travel insurance, etc. But these credit union credit cards are not difficult to get and they can be your good choice to establish your credit history or improve credit score. By the way, the credit limit of these credit cards are very low. I only get a $ 500 credit limit for my first credit card. Now I have a $ 6000 credit limit discover credit card. But my request for the credit limit increase of my first credit is still rejected by the credit union.:-)
By Shane Lee. Date: 06/12/2009.
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How much will my credit score go down by applying for a new card?
Question by stuinblue: How much will my credit score go down by applying for a new card?
I would prefer answers from people who work in the credit industry and can tell me roughly the number of points, and how long it will take for my score to recover once the new higher available credit kicks in…
I know part of your credit score is determined by how much available credit you have. I closed several cards a few years back before I knew it would hurt my score, and now I have very little credit available. I have excellent credit otherwise, and pay off anything I charge the next month. However, I do have a balance I’ve been slowly paying down, and want to open a new card so that my balance takes up less of a proportion to my total credit debt.
How much will this ding my credit in the short term? And how long will the point drop last?
Best answer:
Answer by withluv7
Usually it goes down by a point or two.
Know better? Leave your own answer in the comments!
What is the minimum credit score required to get a Amazon Visa Rewards card?
Question by Le All Knowing…………Mostly: What is the minimum credit score required to get a Amazon Visa Rewards card?
I am 20, and according to Experian, my credit score is 712. According to Equifax & TransUnion, my credit score is 700. What is the minimum score required to get that type of card. Also, what is the credit score required to get a Amazon Store Card?
I already have a credit monitoring program. I don’t need any others. I just want my question answered.
Best answer:
Answer by KMcG
No idea what that score would be, but you shouldn’t have any problems with a score that high.
Add your own answer in the comments!