It is not uncommon to see the mailbox getting filled with flyers from banks and other financial institutions soliciting new customers to try out the various products and services they have on offer. However, it is imperative to tread cautiously and not jump at every opportunity that comes knocking.
With the fall in the number of delinquencies and defaulters, the economy is surely turning better, but this time around the banks are also being very careful while choosing their customers. Long gone are the days when every person looking for a credit card would be given one. Today, the new credit card offers are being rolled out only to consumers who have relatively good credit standing.
Though it is not necessarily impossible to obtain a card, there are a lot of efforts that one has to put in to qualify for the offers. Prior to filling out a credit card application form, obtain a copy of your credit score from one of the credit bureaus. If the score is in the range of 300 to 850, the chances of obtaining a credit card are relatively high. However, if the scores are below 300, it is imperative to first repair and fix the scores before filling out the application form.
The lower the credit score, the higher the fees associated with the card. Though banks do consider certain applications from people with low scores, the cards come at a heavy price. The fees associated on the card and interest rates will definitely be higher as compared to cards issued to people with good scores.
If the credit score is in the range of 660 to 720, it is considered to be acceptable, but a score over 720 is an excellent one. In such cases, it is wise to opt for credit cards that award the highest credit limit possible.
A FICO score below 650 is considered to be subprime, thus making it tough for people with this type of score of avail credit cards with favorable terms. The scores get to a number lesser than 650 because of the excessive late payments, bankruptcy, foreclosures and increased debts of credit cards.
It is better to stay away from applying for the cards if the eligibility criteria are not being met since the chances of rejection are very high. Applying for a number of credit cards at the same time is also not recommended since it is sure to negatively impact your credit score.