Quick Cash for Smart Choices or How to Get the Best Credit Card

Young people the world over are often faced with a common conundrum. If no credit is as bad as bad credit, how are you ever going to get good credit? This is a loophole in our financial system that continues to be overlooked, so we are forced to find a plan of action on our own. Most lenders will view ‘no credit’ as a sign that you have yet to be trusted with a loan and therefore, should not be trusted. Many lenders share this slanted view towards those without a credit history. Thankfully, there are ways to avoid this type of situation.

Your credit rating is largely dependant on how much a prospective lender should trust you, based on your credit history. Therefore, it important to start building a good credit history as soon as you can. One of the best ways to achieve this is to remain at one single job for a number of years. This proves your loyalty as well as proving your money making power. Many potential lenders will look into your employment history before deciding to allocate you a loan or a credit card. Therefore, if you have been with the same employer for a few years, it looks great on your record.

Another great idea is to open up both a checking and savings account at one of your local banks. This will prove to potential lenders that you are responsible with your money. The checking account is used to pay off bills and the savings account is where you put everything extra aside. Any lender will be able to tell that you are trustworthy if you have both of these accounts and have been making faithful deposits.

One of the most effective ways of incurring a good credit rating is ensuring that your bills are always paid on time. Every ‘late fee’ or warning reflects negatively on your credit rating. However, every time that you do pay it on time, it reflects positively. If you pay your hydro, electric and phone bills on time every month, this reflects well on your credit history. A potential lender can view that information and is more likely to lend you the money based on your past.

Another very important option to consider is retaining a copy of your credit report. These reports are famously known to include glaring errors. However, these errors will never be corrected unless you find them yourself. Everyone is entitled to a copy of their credit report and it is up to you to obtain yours.

Upon receiving your credit report, read it very carefully. Compare it to your own records and ensure that every number adds up. There is a great chance that you credit report has misleading or false information in it. If you happen to find such information, send your complaint, along with your proof to the bureau that created your file. They then have 30 days to either reply to you or to update the information on your file.

Upon analyzing and questioning your credit report and making sure that it is error free, you still have many options. The first thing you are going to want to do is to apply for credit cards. You can look for unsecured credit card offers, secured credit card offers or even credit card offers that require the help of a co-signer. Although everything prior to this helps, having a credit card and maintaining the balance responsibly is a gold star in the eyes of a prospective lender.

Upon being approved for a credit card, your name will be added to a credit list. It completely depends on you and your actions of how your name will be treated on this list. But if you pay your bills on time, and adhere to the credit specifications, you shall continue to rise up the list. It may not seem all that important now but having a perfect credit rating in 30 years will serve to help you in more ways than you can imagine.

One thing to keep in mind is that by slowly paying off a debt, you are making yourself out to be a ‘credit risk.’ Anyone who receives a credit card bill each month knows that there is a minimum that you must pay. Although that is fine in the eyes of the creditor, because they will eventually get more money out of you from the extended interest rates, it is not good in the eyes of a lender. If you pay off more than simply the minimum amount owed each month, it will serve to boost your credit rating.

Another item to consider is that even though your credit limit may be $50,000, you should not use it up to that point every month. Every time that your spending approaches your limit, proves that are not very responsible with money that has been lent to you.

Therefore, keeping your borrowing below 70 per cent of the ultimate loan is a good idea. A credit card company will use this evidence as proof that you cannot pay a higher rate and will therefore charge you a higher interest rate.