Having a credit card sounds incredible, being able to obtain all the possible benefits. That come with it is something that promises to give us a certain security and financial freedom. However, sometimes it may seem to us that the process. And the requirements to obtain it, as is the case with the score, are a whole tangle of information.. And something extremely complicated in the credit world. Don’t despair! In reality, what you need is to be well informed to understand. How this topic works and thus be able to make the best decisions regarding your finances.
What is the credit score?
The credit score is a score that is shown in the credit bureau report. It can go from 400 to 850 points. This is formed through a wealth of information. Such as the punctuality of your payments, the job stability you have. And the seniority you have in the credit bureau. Even if you have only been in it for six months, you already have a history. And therefore a score in the bureau that will position you to find the credit card. That best suits your needs and, above all, your economic possibilities.
The better your credit habits (such as paying your cards on time, for example), the better your score will be. In reality, it is something that you cultivate over time and with your punctuality. The score is one of the fundamental points that banks take into account to give you a credit card or not. Since they obviously seek not to take too much risk with customers and try to avoid those that could be a problem when making their payments on time.
So what score do I need to get a credit card?
Depending on your credit score, it will be the plastic that the banks will give you. If you have a low score, your card will not be as attractive. As those offered to people with a high score, good income and job stability.
Below we list the cards you can get according to your score:
- If you have a credit score of 400 points, you will surely qualify as unsatisfactory. So you will most likely not be approve for a credit card. In this case, the best thing is that you advise yourself. And propose to clean your credit bureau, so you can reapply for a card.
- On the other hand, if your score is between 450 and 500 points. You can already be a candidate to receive a card; Under this scenario, most likely the one that will be grant to you will be one of the so-call departmental cards. Which are generally only accept at the establishment. That issued it to you and have one of the highest interest rates that exist. If this is your case, check the interest rates well. So that you can choose the one that suits you best.
- In a score of 500 to 550 points, credit cards are grant to people who are new to the bureau, which would be, for example, students who just want to get their first loan. These are very accessible plastics and a very good start to have a credit history, something simple and not very ostentatious with which you can start to generate a good score.
- On the other hand, if the score goes from 550 to 600 points, the plastic for which you qualify will be of low requirements, they have some of the highest interest rates, which is obviously a disadvantage, but they are recommend for those people who seek to remedy their credit situation.
- A score of 650 to 700 points can give you classic credit cards with the lowest annuities on the market; however they also imply a small line of credit, which is inconvenient if what you are looking for is a higher amount.
- In scores of 700 to 750, gold and platinum cards are the perfect suitors and this credit score is practically a guarantee that you will not fail in your payments, that you are a responsible prospect in terms of your finances and obligations regarding your credit. .
- The score of 850 points is the highest of all, which makes you a candidate for practically any credit card you want because you do not represent any risk for the banking institution.
Now that you know the importance of your credit scores, it’s time for you to get to work and cultivate the best financial habits you can. Remember that with good financial discipline you can enjoy the multiple benefits that credits offer you, without fear of things getting out of control. You have the tools at hand; all you have to do is use them to the best of your ability.