If you are wondering what will lead to getting approved by security bank mastercard platinum or the credit card of your choice, you need to have a good credit score. Most people see this as a grey area; that as long as they do not have debts then they think that they are already settled but this is wrong. You have to know what a good credit score is, this will all make the difference between having the perfect credit card and getting a mediocre one.
Take a look at what a good credit score is, by reading below!
All in the Numbers
A credit score ranging between 300-850 or 700 and above is the basic and general standard of a good credit score. Once you hit the 800th mark, this is what credit card issuers consider as excellent. What you should know that for people who aim to be issued a credit card, their credit scores fall between 600 and 750. If you have a higher score, the greater your chances are at getting a good deal for your credit card.
Credit scores are used as a basis in order to determine your spending habits and credit decisions. This will serve as an establishment of trust between you and the bank which will help them be more confident that you will be faithful in accomplishing payments for the credit card.
Why is Credit Score Useful?
This quantifiable category is used by credit card companies, creditors, lenders, loan providers, and banks, to help them arrive at a decision whether they will grant your request of getting credit from them. Making decisions that come with getting approved by security bank mastercard platinum or otherwise, will mean that you should be disciplined in maintaining your credit score.
The two common types of credit scores are FICO® Scores and VantageScore. These are industry-specific scores that will help you determine how worthy you are of having a credit card. It is known that the highest credit score can go up to 850. This will help banks or other financial institutions calculate your credit risk, further improving your relationship with them and strengthening your agreement to be prudent on your payments.
What Can Affect Your Credit Score?
Financial institutions base your credit score depending on the criteria. Here are the factors that can affect your credit score:
- Payment Schedules
This includes how frequent you apply for credit, your credit payment habits, and how you go about your credit standing. Credit card issuers will check this to see if you can comply with the regular payments of your debt and this helps them to know if you are punctual in paying or not.
- Credit Utilization Ratio
Banks will look into this factor to know how much you spend from your credit limit. If you keep maxing out your credit card, this will reflect in all your credit card statements. Ultimately, this will lead to a lower credit score.
- Credit History
Of course, credit card issuers need to know how your loan accounts came into fruition, what types of credit you used, or if you are prone to getting multiple credit cards at one time. This information will help lenders gauge if you are responsible once you have a credit card.
A credit score is as one of the most important assets you can get in order to secure a financial aid such as a credit card. Financial responsibility immediately reflects in this quantifiable data which will highlight your qualifications in front of the lenders. Knowing this, make sure that you prove your discipline by avoiding late repayments or worse, failing to pay for your credit at all.