There are a number of different circumstances in life where people might need to apply online for a credit card. A person can apply for credit cards in a number of different ways but with the online revolution and the convenience of using the internet it has not only become very easy to apply for credit cards online but in fact many people are very interested in filling out credit card applications online simply because it is such an easy thing to do.
In order to get the good credit cards however it takes a little bit more than simply sitting down at your computer, filling out an application and waiting a few weeks for your brand new credit card. People that have good credit can do this because they have proven over the course of their life that they can be trusted with these types of situations.
It is very important that people are very careful with how they go about building their credit however and whether you have bad credit history or indeed no credit history it is important that you are aware of some of the considerations that need to be taken into account when someone is dealing with the concepts relating to building a credit history. This article aims to give you that insight in as concise a package as possible.
Importance of Credit
Before one can go about building their credit it is always good to understand why credit is important in the first place. A person that understands the consequences of reaching their goals are far more likely to work towards those goals in a very motivated manner and it is for this reason that discussing the importance of credit before moving on and actually discussing how credit can be built is such a useful thing to do. A number of reasons currently exist as to why credit is so important and here are some of the more important reasons.
Good Credit Cards: The difference between whether a person can get good credit cards or bad credit cards is almost always going to be determined by credit. It is quite possible for a person with bad credit to smooth talk their way into getting a good credit card but it is important to realize that in this endeavor you’re going up against a company that makes its living by smooth talking people into taking these credit card deals.
999 times out of 1000 it is going to be as a result of credit scores whether or not a person gets good credit cards or fair credit cards for their personal use. What’s the difference? The difference lies in the interest rate (the lower the better) as well as the different fees involved within the daily use of the credit card (also the lower the better).
Loans: This is another extremely important aspect and to a large extent one that you can make the argument is largely ignored by people that are in credit problems. The ability to get a loan as well as the ability to get a loan with favorable terms are both significantly affected by the credit you possess as a person.
When you are talking about personal loans like home equity loans and mortgages in addition to things like lines of credit and even all the way up to loans for business reasons it is all going to be controlled by the quality of your credit score.
Improving Your Credit Score
There are a great number of things that you can do in order to improve your credit score. It is vital to understand the importance of these things whilst at the same time actually committing to doing them. Here are the most important things that you can do in order to improve your credit score.
Check your report regularly: Obtain a copy of your credit report from each of the three main credit bureaus (Equifax, Trans Union and Experian) and check it over for errors. Report any errors as quickly as possible and additionally exercise your right to make 100 word responses to all of the poor items on your credit report.
This not only allows you to understand your current situation but it also has the added benefit of showing the credit bureaus and the money lenders that you are serious about improving your credit score.
Keep your bank accounts active: This is perhaps an angle that not many people consider but at the same time it is indeed a very important one to consider. Make sure that any chequing accounts that you own have regular transactions going in and out of them and also make sure that any savings accounts you possess are regularly being added to (even if it is only a small amount).
This will allow you to really get on top of things quickly and will also show people that you are handling your money frequently and efficiently.
Pay all bills on time: This is the most important thing. People that lend money are looking for stability and if you can show over a long period of time that you have been making regular payments to your creditors then you will have established that proof of stability which in turn means that more people are going to be willing to work with you in spite of the bad credit history.