In essence, it would seem that getting a credit card is easy. After all, credit card company representatives are out and about on the streets and in shopping malls signing up new customers all the time. However, filling out the form is only the first step, and your credit score will be used to determine if you are actually wanted as a customer. So, what credit score is actually needed to get a credit card?
For most of us, purchasing a house and a car are two major situations where borrowing money is essential. They are significant financial outlays that require dedicated effort to pay off over a long period of time. Banks and other lending institutions rely on our credit score for approval of loans, so what credit score is needed to buy a house or car?
Credit scores are the safeguard banks use to protect themselves against the possibility of loan defaults. They are based on a range of data related to the borrowers previous financial accountability and present financial status. Whether we like it or not, our credit score is a personalised risk assessment, and involves disclosure of both good and bad financial dealings. The positive and negative are taken into consideration for our individual credit score.
A bad credit score will cause a moneylender to consider you a risk. There are ways to plan right now if you are considering applying for a loan sometime in the future. Having a credit rating that doesn’t satisfy a moneylender will adversely affect your borrowing options. Some lenders claim that they will lend money to anyone regardless of a bad credit rating or history, but many of these financiers cover themselves by demanding unrealistically high interest and repayment terms.