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Credit score report
Date: Jan 26, 2005
Contributor: Tia Lung
A credit score is based on your credit report, which shows your past history in managing credit. A limited credit history doesn't give the credit card companies much to go on in deciding whether to extend you credit.
Don't be envious of people getting a lot of offers for credit cards in the mail. The teaser rates posted on the front of the envelope are only available to prospects with a strong credit history. Credit card companies use risk metrics to decide on both a credit line and an interest rate and that decision isn't made when they mail the offer but rather after a consumer applies for the card.
Multiple inquiries don't help your cause, especially with credit cards. Every time you apply for a card that application stays on your credit report for two years. A lengthy list of declined applications makes you look desperate for credit and lenders hate to loan to desperate people.
The current practice of department stores to offer credit cards that are both store cards and national cards (MasterCard, Visa, etc.) may be an opportunity for you to get a national card with a marginal credit rating.
Check your credit report to see how many declined credit applications are on your report and when the last one was reported. Let some time pass before applying again. You don't have to wait two years, but several months is a good idea. Apply to one credit card provider. Bankrate's credit card search is a good way to find companies offering cards with the features you want.
Start with your credit union if you belong to one. Try a combined store/national card if you don't belong to a credit union. If that doesn't work, then you'll need to start out with a secured credit card and build your credit history with that.
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