Credit Secrets & Tips

The lenders often look for 4 basic things when you apply for the credit:

1.  Good payment record

If you pay your bills on time, you’ll score major points with lenders.

If you have a lot of late payments, this can hurt your chances of getting a card, and, if the lender decides to issue you a card, it’s probably going to have a higher interest rate.

2.  Signs of stability, responsibility

Lenders perceive things such longevity in your home and job (at least two years) as signs of stability. Having a respected profession doesn’t hurt either.
 
3.  Control of debt load

Lenders generally want to see that you are a good credit risk and that you aren’t living beyond your means.

Experts say non-mortgage credit payments each month should not exceed more than 20 or 25 percent of your take-home pay.

4. Reduce credit inquiries

Whenever you apply for a credit card, the lender will pull your credit report from one or more of the major bureaus as part of the approval process.

Each time a report is pulled, it’s marked as an inquiry and stays on your credit bureau report for two years.

Lenders perceive several inquiries on your report as indications that you’re scrambling for loans and may consider you a poor credit risk.

Bt following above 4 points, your chance to get approved for the credit is much improved.