Negotiating For Better Credit Card Terms
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by: barrywaters
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Word Count: 514
Date: Fri, 9 Jan 2009 Time: 6:06 PM
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So what can you do to secure a credit card even if your credit standing is poor? The best way to do this is to improve your credit score. It is fairly common knowledge that people who have higher credit scores stand a better chance of being given credit cards with good terms than people who have less than ideal credit scores. In addition, having a high credit rating will also make you eligible for lower interest payments on your mortgage and car loans.
Here are some of the ways by which you can improve your credit standing.
Correct mistakes in your credit report. Since a mistake on your credit report can result in a lower credit rating, it is important to check these reports thoroughly before you apply for a credit card. You should look into this as early as possible, since correcting any mistakes in your credit report is a process than can take a long time.
Make payments on time One of the things that credit card companies look into when determining how eligible you are for a credit card with good terms is your payment history. Even if you have only missed one credit card payment in the past, your credit rating may be affected adversely. Paying your bills on time is the single best thing you can do to raise your credit rating.
Pay off the balance on your credit card Another thing that can affect your chances of getting a credit card with good terms is the ratio of your credit balance compared to your credit limit. If you are interested in raising your credit score, keeping your balance below 25 percent of your credit limit is a good way to do just that.
Keep old accounts open There was a time when the best option with regard to old accounts was to simply close them. The change in the way that credit ratings are calculated however has made it more feasible to keep older accounts open, thereby increasing your credit score. Closing old accounts will actually have a detrimental effect in that it will shorten the length of your credit history, thereby decreasing your available credit, as well as increase the ratio of your credit balance in relation to your credit score. While closing your old accounts will only lower your credit score slightly, keeping them open may just spell the difference between being approved or rejected for a credit card with better terms.
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More information related to credit cards, read www.lendingtree.com/credit-cards.
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