Credit Card Score

Credit Card Score And Credit Card Rating

There is no magical formula to having a good credit report score.

People with great scores, have learned the art of borrowing and repaying credit on time without defaulting. They have earned credit worthiness and have built their credit reputations based on responsible money management.

People with good credit report scores ensure they make all credit card payments on time and doubly ensure that they never miss any of them. Even one missed payment can have a negative impact on your credit standing and could make improving your credit score an uphill struggle for a long time to come.

Should you encounter financial hardships, try at the very least to make the minimum payment each month. If this is beyond you, take steps to inform your credit card issuer at the very earliest opportunity.

While this step will not help to improve your credit card score, It is far better to be upfront and secure reduced payments than to endure many sleepless nights, not to mention the increased risk you run of defaulting and completely destroying your credit card credit standing.

If it is the case that you have an existing poor credit rating, providing that you have addressed and settled any credit report disputes you might find that the only option you have to improve credit score is a significantly higher rate of interest.

If you are prepared to be be patient however, six month to a year or so of using a higher interest rate credit card can help to get you back on track to improving your credit card score. It may be faster (and less frustrating) to work with experienced credit repair consultants.

By using your credit cards responsibly - i.e. using them for grocery shopping etc., and repaying them in full each month, will help you in re-establishing your credit standing or credit history and ultimately your credit card rating score.

How To Start Establishing A Credit Report Score

If you are new to credit, your focus is clearly not on improving credit card rating score. Rather, it will most probably be on how to go about establishing a healthy credit card credit score for yourself or not getting rejected on your first credit card application.

This can seem daunting, since you have no credit history on which lenders can predict your behaviour or on which to assess your level of credit worthiness. Younger people and students in particular may face this challenge.

A good way to get on the credit card credit ladder and to consistently improve credit score standing is, to apply for a credit card with one of the retail chain stores that report to one of the three main credit reporting companies.

Students can apply for student credit cards which, although offers lower credit limits, are nevertheless an excellent way to start building your credit card history while improving your credit card score in the process.

By demonstrating your ability to use your chain store credit card or student credit card responsibly, you will set yourself on the road to establishing a credit history and improve credit rating potential.

A second way to start establishing your credit standing and improve credit card rating score is for a parent or guardian with an established credit card score to stand as guarantor for you.

It remains your responsibility however, to maintain your credit card account appropriately and to make the required payments. If you don't, the guarantor will have to pay on your behalf, which will do nothing to improve credit standing, your credit reputation, nor your card score now or in the future.

The content on this site is purely for information purposes only and is not intended to replace your seeking professional financial advice.

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