Why Can’t I Get Approved For A Secured Credit Card – Instant Credit Boost

I’m sure you’ve heard the term credit score previously. It’s that 3 digit number that follows you & your financial life every where you go. You need it to get authorized for loans, credit cards, homes, home loans & more! And since you never truly see it, it’s normally “out of sight, out of mind”– but this number is something that requires to be taken severe.

None of us like it, the fact that a credit score is so important to almost everything we do economically is exactly why we stated it has to be taken severe. It can take years to build up a excellent score and just a day or 2 to bring the entire thing crashing down.

Why Can't I Get Approved For A Secured Credit Card

Thankfully, there’s things you can do to protect and inform yourself on the subject. From tricks to give you a near-instant boost to your score to comprehending what a credit score even is from a basic level, we’re going to stroll you through this step by step. Get ready to take control of your financial flexibility once and for all!

What Exactly Is A “Credit Score”?

Simply put, a credit score is a number in between 300– 850 that portrays a customer’s (you) credit reliability. The higher ball game, the much better the individual seeking to borrow money or open a charge card aims to the possible lender. A credit score is based upon credit history, which includes:

  • Number of open accounts
  • How much debt is currently open
  • Repayment history
  • Number of hard inquiries
  • Age of credit history
  • Any derogatory marks

Lenders use credit report to examine the possibility that an person will repay loans on time and in full (or as determined in the loan agreement). It’s worth noting that it’s not always a clever idea to close a credit account that is not being used due to the fact that doing so can reduce your credit score by impacting your credit rating age & quantity of open credit offered to you.

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The credit score design was produced by the Fair Isaac Corporation ( typically referred to as FICO), and it is utilized by banks like banks. While other credit-scoring systems exist, the FICO score is by far the most frequently utilized.

Having issues with your credit? There are a number of methods to enhance your score, including paying back loans on time, settling credit cards monthly, and keeping financial obligation low. We will get into raising your credit score even more in the post.

How Do Credit Scores Work, Anyway? Why Can’t I Get Approved For A Secured Credit Card

A credit score is a significant element of your financial life. It plays a essential role in a lending institution’s choice to say “yes” or “no” to your loan or charge card application. For example, people with credit scores below 640 are normally thought about to be subprime debtors.

Loan provider frequently charge interest on subprime home loans at a rate higher than a conventional home loan in order to compensate themselves for handling a high danger customer. Depending upon how low your credit score is, they might likewise require a much shorter repayment term or a co-signer.

On the other hand, a credit score of 700 or more is typically thought about excellent and might result in you (the debtor) receiving a lower rates of interest. On loans like home mortgages, a somewhat slower interest rate can wind up saving you tens of thousands of dollars over the payment term!

Scores greater than 800 are considered excellent. It’s worth noting that while every financial institution defines its own varieties for credit report, the following FICO score variety is frequently utilized:

  • Excellent: 800 to 850
  • Very Good: 740 to 799
  • Good: 670 to 739
  • Fair: 580 to 669
  • Poor: 300 to 579

In short, your credit score is a mathematical analysis of your credit reliability and directly affects just how much or how little you may spend for your credit. Your credit score can likewise determine the size of a down payment required on items like phones, energies, or apartment leasings.

How A Bad Credit Score Is…Bad

As mentioned previously, a bad credit score is anything below 670. If you want to get more specific, a score varying in between 580-669 is thought about ” reasonable”, while anything in between 300 and 579 is considered ” bad”. This is going off the FICO scoring that’s most commonly utilized.

Not sure what your credit score is? Click here to get your score from all 3 major bureau’s. It’s free!

Having a bad score can stop you from doing a great deal of things. This consists of getting approved for much better credit cards, mortgages, apartments, personal loans, service loans, and more.

Plus, any loans or credit cards you do get authorized for will be a lot more pricey (as discussed above). This is because loan providers charge much greater rate of interest to those they deem “high danger” in order to balance out the extra threat they feel they’re taking by loaning you money.

How do they get more expensive? By charging higher rates of interest. For instance, if you get a $10,000, 48 month loan on a car with a 3.4% rate of interest, you’ll pay about $704 in interest throughout the loan. If you took out that very same loan with a 6.5% rate due to bad credit, you ‘d pay about $1,376 in interest. That’s practically double!

What Can I Do About A Bad Credit Score?

Think you have a bad score? Don’t fret– there’s excellent news: credit history aren’t fixed! Your score will alter when the information in your credit report changes. That implies you can take control of your financial health now by making changes that will favorably affect your credit score with time. Here’s a few things anyone can easily do to start:

  1. Take Advantage Of FreeScore360 by ScoreSense – If you want to improve your score, you need to be able to check it regularly & be sure you’re getting accurate data. That’s where FreeScore360 comes in. They allow you to easily check your score at all 3 major bureau’s, as well as providing daily credit monitoring, alerts, and $1 million in identity theft insurance. Plus you can try it for free here!
  2. Secured Credit Card – Just make an preliminary money deposit (which typically becomes your credit limit). You then utilize the card like a routine charge card and build your credit. Make certain to constantly pay your expense on time and keep the balance near to $0 as possible.
  3. Credit-Builder Loans – The loan quantity is launched back to you after the loan is paid off. Always make certain the loan provider (typically a cooperative credit union or community bank) will report your payments to the three significant credit bureau’s.
  4. Become an Authorized User – If somebody with a excellent score & a long record of on-time payments and low credit utilization is willing to add you as an authorized user to their credit card, your credit will benefit by having that card added to your report.

When it pertains to taking control of your finances and bettering your credit score, you have choices. Usage FreeScore360 to learn what your real score is, then sit down and make a master plan. Improving your score will require time, but it does not need to be tough! Great financial practices like settling your charge card each month will take you a long way toward that financial flexibility.