Most of know exactly what credit is and how to use it, albeit maybe too much, but do you know everything there is to know about applying for said credit?
There are 5 major areas that any credit card company, lender, or even an instant loan institution will look at before processing your request.
The 5 C’s of Credit
While a lot of the time applying for credit can very much be a numbers game, certain characteristics can influence your application. Good traits such as being at the same job for a steady number of years or being with the same credit card company or banking institution for years are all good signs that they will take into account. It may not make or break your application, but discussing your good traits with the lender could help connect any dots that otherwise would have be left unanswered.
You need credit to get credit. While most of us know this to be true, there are many misconceptions about what good credit is and how to get it. Your credit score is basically a clue to how you’ve handled credit in the past. Do you make your payments on time? Do you miss payments? Do you apply for credit at a too-rapid pace? All of these traits are indicated by your credit score or credit report. Of course, the higher the score, the better. It’s not hard to check on your credit either. Both Equifax and Transunion will give you your report for free.