Understanding and Boosting Your Credit Score

Did you know that there are ways that you can boost your odds at getting approved for a credit card? Many people don’t realize that they have more financial control than they think.

- Understand Credit Score in General

You should understand credit scores because they are an important component when it comes to your approval odds. While not all banks are the same with their approval criteria, a good rule of thumb to follow is that 300 to 629 is considered below average credit, 630 to 689 is considered average credit, 690 to 719 is considered above average credit, and 720 above is considered to be excellent credit.

- Know Your Credit Score(s)

The most common scoring models used are VantageScore and FICO score. There are applications/websites you can use like Credit Karma that can show you your score for free without hurting your credit. Depending on who your card is with you may be able to view your score for free. If you have Discover, they allow you to check your FICO score anytime on the app or on their website.

- Improve Your Credit

Now that you know your score and the goal you should reach to get above average credit or even excellent credit; you can begin improving your score. Some of the best ways to improve your score include you making payments on time, avoiding new debt, and keeping balances low on existing cards.

- Make Smart Decisions

If your credit is not great right now, you want to be mindful of where to apply. When you apply for a credit card you typically run a hard inquiry which can hurt your credit. It can even be worse if you get declined on hard inquiries because you still need to apply to get approved. You can use soft inquiries that see if you pre-qualify so you don’t have to hurt your credit by pulling a hard inquiry that you cannot even use. Also aim for cards that are more forgiving if you have a bad score, these are usually cards without rewards as well as secured credit cards.

- Make Sure to Fill Out Applications Properly

Even if you have a low score, if you have a high enough income that may be able to boost your odds as well. Make sure to accurately list out all forms of income! If you have your primary job and sell brownies on the side, then that baking sale income can actually help you. If you are married or have a partner, you can use the household income so that takes theirs into consideration as well to boost your overall income. However, regardless of the way you boost your income don’t do it illegally. If you purposely overstate your income and an issuer finds out, then you could be charged with credit card fraud. If you are unemployed then you should seek cards that are forgiving of the situation (again, these are typically secured credit cards).

Overall

You have more financial control than you think. If you are looking for a credit card you just need to know where to look given your financial standing. Take your time and figure out which card would be best for your situation.