If You Know What Creditors Look for Then You Can Get the Best Credit Card Deals!

September 14, 2007

If you are a credit card holder and consistent user, knowing how the minds of your creditors work is a crucial thing. Your creditors decide what you do, what you can purchase and what loans you are able to get. There are certain things that creditors look for specifically when they look at potential customers- here are the basics!

What is your ability to repay debt? This is the number one thing a creditor will look at when you fill out a credit card application. Before you are able to obtain a VISA or MasterCard you have to prove yourself worthy to pay back your debts. The best credit cards come from the best creditors and those lenders want to know you have the ability to pay back debts. When a creditor examines your abilities they will look into your employment history to make sure you have had a steady job. They will also look at your expenses, dependants and your savings.

What type of credit history do you have? In order to be considered for the top credit card deals a creditor wants to see your credit score. Your score will range from 350 to 850 and the higher is better. Outside of just your credit score, creditors will often look at how much money you currently owe, what types of credit you have taken out in your name and whether you rent or own your current home.

What type of protection do you have? Creditors have quite a bit of risk involved with doing their job and part of that risk includes you. If you have excellent credit then you will be less of a risk while if you have a poor credit history you may be considered a high risk borrower. If you fail to pay on time what type of assets to you have? This is important and creditors will look at your home, savings and investments because just in case you file bankruptcy they want to know they are protected!

While creditors are looking at this information you should be aware that they will be looking at your information differently. Each creditor could look at your credit score/history and decipher it differently. For instance, if you have a credit card application for bad credit you may have an easier time getting the card with bad credit then if you had one of the top credit card offers.

If one particular creditor turns you down don't get discouraged right away. If your credit is so bad you may be forced into getting a secured credit card which works in a similar way as a debit card but you shouldn't just assume that's all you can get. When you contact a credit card company you would be surprised at the deals you may be able to get!

Restrictions Dealing With Creditors

As a cardholder you should realize that there are certain restrictions and limitations against creditors. While the Equal Credit Opportunity Act doesn't guarantee anyone's ability to receive credit, creditors are not allowed to discriminate according to certain things. Below is a list of things creditors are not allowed to do:

• Creditors are not allowed to tell you not to fill out a credit card application or loan. They act the same for each of their customers.

• Creditors are not allowed to close any of your accounts just because you reach a certain age or if you are of a certain gender, occupation or marital status.
• Creditors are not allowed to give special preferences to someone else with the same income, history and credit score. They must treat everyone equally.
• Creditors are not allowed to not give you a loan or credit card application if you qualify for one.

Through all of these regulations against creditors there are a few special cases that involve them and you, the card holder. Age and public assistance are the two cases that may come up and you should know your rights:

Age: A creditor may try and discriminate against you just because you are a certain age or because you have gotten to retirement and lost your primary income. They are not allowed to do this; while a creditor can ask your age they are not allowed to do several things. Here are the main limitations:

• Creditors cannot give you a worse deal or turn you down just because of your age.
• Creditors cannot force you to reapply for a loan or credit card deal just because you turned a certain age.
• Creditors cannot look past your retirement income as part of your financial employment. Any money coming in should count as something you are earning.

Many creditors use age when they score you in their unique credit scoring programs but it shouldn't make or break a situation of getting the best credit cards. If you have excellent credit you shouldn't be denied on the basis of your age. This applies for online credit card applications as well. The internet is a great place to look for the new credit card deals and you can compare credit card offers and find the best one for you; just make sure they don't discriminate against you because of your age!

Public assistance: If you receive public assistance/ social security then you cannot be denied a credit card on this basis alone. These forms of payment should be included in your income and a credit card company cannot give you a higher interest rate just because of this. A creditor may look into other areas of your financial life but they cannot use public assistance as a negative thing.

Tips to Using Credit Cards Wisely!

• Keep track of your spending and save receipts. Making sure that the numbers add up at the end of the month is pretty important. Credit cards work like loans that must be paid back- don't forget this!
• Don't lend out your credit card- ever! Don't trust anyone with your credit card because you aren't just risking your money but your entire finances!
• Pay your bills on time every pay period! If you are serious about keeping your credit score at a reasonable level then the best thing you can do is pay your bills on time. Your credit is your financial responsibility- take care of it!