The success of your credit card application is largely dependent
upon 2 broad factors; your history of credit and your
personal credit report/credit rating.
Your credit history is simply a record of your past pattern of both
borrowing and repaying credit. This record will form the basis of
your credit report, (which is a file that has been compiled on you)
by a credit reference agency or credit bureau.Any disputes that have arisen in relation to your credit card credit use or transaction payments
In addition to the above, your credit card history or credit report
will contain other personal information such as your date of birth,
employer's details, your social security number. If you have not
previously applied for credit or for a credit card - no history
exists and this will be noted also.
Assuming you have completed an application for credit card with
either a credit card company or for a store credit card, your information
is then forwarded onto a credit bureau (US) or a
credit reference agency (UK).
This new information will in effect update any existing information already held by the
credit bureau or credit reference agency. For instance, any change
of name, address, new credit transactions etc., since you last
applied for credit.
How Is Your Credit Card History Or
Credit History Report Information Used?
The credit report information that is held by credit reference
agencies or credit bureaus, is used by various credit lenders - from
banks, credit card companies, to store card suppliers etc.,
Your credit card history or credit report will help to assess and
determine in creditors' eyes, your level of credit worthiness -
which ultimately is your ability and motivation to repay any
credit borrowing, as well as helping the credit card companies to
decide on the terms and basis on which they will extend credit to
Personal credit reports and in particular, your credit card history
should therefore be very well taken care of. This is especially so,
since credit card companies have adopted a risk-based credit
advance system on lending, which effectively means that individuals
or businesses with healthy credit ratings and credit history reports
are deemed a better risk and this will be reflected in the more
favourable rate of interest (APR) they are awarded.
This is important information for you, since, in addition to your
past credit, your credit history report will contain information on
all your current activities such as loan or credit card credit
applications. Your credit history will of course also note, if
when you apply for credit cards, no credit history exist on
account that you are new to borrowing credit.
Each application for credit cards that you make, is logged
in the credit reporting system. Should your applications be too
frequent or even if you make multiple credit card applications,
this can give the impression that you are in desperate need of
credit and can most definately go against you in any decision
taken to advance you a credit card.
Bear in mind also that any instances of bankruptcy, foreclosures,
account judgments, or anything else in the public domain that points
to your being an adverse credit risk, will be deemed
relevant to your credit card history and as such, will be reflected
in your personal credit card report. This of course will have
a significant impact on your credit-worthiness.
The content on this site is purely for information purposes only
and is not intended to replace your seeking professional financial
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