Getting started with your credit cards for bad credit and your credit history at the same time can be beneficial for you in the long run. Use your credit cards to build a great credit score and keep an eye out to monitor it regularly. But a lot of people who do not know how to check their credit reports, don't really understand how they work. There can be several errors in your credit reports which you might not even be aware of at the moment. If you are as regular with checking your credit reports as you are with credit card comparison, you may be able to correct any inaccuracies in the information recorded in them.
Different Ways To Access Your Credit Reports
There are different ways to access your credit reports and you are also entitled to one free credit report every 12 months legally from each credit bureau. Monitoring your credit reports therefore becomes easier. You will have a minimum of 3 credit scores. Checking and monitoring all of them can be a little tricky than you know. However, it is always advised that you follow some of your credit scores on a regular basis over a period of time. This will help you get a general idea of what your credit history looks like to any potential lender that you might want to associate with in the future.
There are 3 primary credit scoring agencies in the market which are TransUnion, FICO Score and Vantage Score. Reports generated by all three agencies will be considered by the leading lenders / banks / financial institutions whenever you apply for a loan or a credit card. But also, you need to remember that knowing each and every detail about the various scoring models used by these agencies is absolutely futile. There is no point in getting into the intricacies of any of them. Leave this job to the agencies and focus more on how to use your credit cards for bad credit intelligently.
What Is Exactly In Your Credit Score?
There are various criteria used to create your FICO scores. Similarly, there will be a long list of factors that TransUnion and Vantage Score are going to use to assess your credit score. According to experts, there are numerous lenders in the market that rely significantly on your FICO score. Whenever you apply for a credit card, they would want to monitor this particular score. Several major credit card companies have also begun to offer free FICO score once every month.
Vantage Scores on the other hand are different from FICO scores. However, there are similar factors at play here and monitoring this score on a regular basis is also a good idea. It will give you a reliable estimate of whether your credit report looks bad or good to any lenders in the market. It is advised that you should never let your FICO score go less than 670. If you have a FICO score of about 670 or higher than this, you will come across as a reliable borrower to the leading lending institutions / banks.
Can Any Pre-approved Credit Card Offers Help You Enhance Your Overall Credit Scores?
You notice that you are getting a lot of credit card offers in your mail. This offer seems to be the only thing apart from the several bills and advertisements that you have been receiving on a regular basis. But you don't want any more credit cards. Are you sure?
All of these offers and advertisements have "limited time" and "apply now" directives and messages printed on them. It is time to consider these offers and not take any pre-approved credit cards lightly. Remember, many reputable credit card companies would enquire from the leading credit bureaus about individuals / credit card owners who readily meet a few important credit criteria laid down by these companies. If you happen to be on this list, you are considered a good borrower. If you get a pre-approved credit card offer in your mail, do not miss this opportunity. Receiving all of these mails means that you have passed those requirements and you can avail this offer at any time.
Pre-Approved, Pre-Screened, Pre-Qualified
All these three terms are used interchangeably in our routine life. However, they have a few differences that are mostly avoidable. Some credit card companies and related websites use these terms to describe a pre-approved credit card. When it comes to the context of mortgages and other lending products, the use of these three terms may vary. To understand their definition better, you can get in touch with the credit card issuer. Getting pre approved for a quality credit card means that you easily qualify to apply for it but it is not a guarantee that you will get it. This approval is primarily based on the information that you have submitted to the credit card company. You are still required to submit an application for the credit card to be officially approved for it. This eventually reflects positively on your credit history.
