Read The Fine Print
When applying for credit not reading the fine print can be expensive. As most people are just so grateful for the opportunity to be invited to apply or just in a hurry to get it over with they simply apply for the credit and hope for the best. However this is not the tact that necessarily gets you the best healthy mix of available credit or the best interest or insurance rates.
Before you sign you need to read the fine print to find out the following four things –
1. What credit reporting agency does the credit bureau use when making a credit decision?
2. What is the minimum FICO credit score required to get approved?
3. What is the minimum FICO credit score required to get approved at your best interest rate?
4. How does what you already know about your credit report affect your eligibility for the application? Obviously if you read something in the fine print that makes you ineligible for the card or loan then you don’t want to bother applying because rejection could cause you a black mark on your credit report.
If you can’t divine the answers to these questions in the fine print then you can always call the issuer of the loan and ask them directly. Most reputable lenders will be happy to answer your questions, as it is all part of getting the best interest rate or credit limit.
You can also ask a lender what the minimum FICO score is for you to be eligible for credit. Once again there is no sense in applying if your credit must be 720 to be eligible for the credit product and your credit rating is 710.
If a lender refuses to answer your questions then it is probably not a reputable business! Don’t waste your time with companies that don’t seem to want your business. There are plenty of good lenders out there who do!
… Now that you have learned the 33 things that you shouldn’t do to sabotage your credit you have probably realized that you have already done most of them. In Part IV of this guide we are going to concentrate on how you can get your credit score, analyze it and then improve it – the right way!