When you apply for a credit card, it is one of the most important things to know that the bank uses the Credit Bureau to draw your credit report.
Your credit report is a wide record of your credit history that can determine whether you have been approved for a new line of credit cards such as credit cards.
In America, there are Three major credit bureau – Credit reporting agencies are also known – that banks and credit card companies can pay to access your credit report: Equifax, Experience and Transonians.
Connected: How to check your credit score for free
The Credit Reporting Agency (CRA) used by the card issuer to see your credit report can determine whether your application is approved or denied, especially when you apply for different cards in a short time. If many card issuer draws from the same credit reporting agency, it can affect you Possibility to be approved,
However, if the card issuer goes to separate credit bureau to buy your report, a issuer cannot see that you are applying elsewhere for a new account. As a result, the possibility of approved for many cards should increase.
Many credit applications can reduce your score, so it is important to know what you are deciding to apply for several cards at a time.
Before you apply for a new line of credit
It is important to know where your credit stands before applying for any type of new credit. Be sure to check your credit score and report before filling a new application.
Check your credit report
Your credit report is a record of your credit activity, including your payment history, outstanding loans and Credit inquiryUnderstanding your credit health gives you a better idea of ​​how your application can see a potential credit card issuers. Fortunately, it is easy to check your three credit reports.
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You can request a free report from Equifax, Transunion and Experian once every 12 months. Anfelcreditreport.com,
Connected: How to correct errors on your credit report
Check your credit score
While your credit report paints a detailed picture of your credit history, it usually does not include your current credit score, so you also want to check it.
Doing your check credit scoreHowever, it can be slightly more complicated. Instead of only three scores – one – hundreds of commercially available credit scores for each of your credit reports, and some lenders also use their own custom models. This means that there are thousands of possible credit scores variations.
There are two most widely used credit score models in the US Fico And VantagaskorThe Vantagskore, created by the three major credit bureau, has been gaining popularity since the launch in 2006.
Although the FICO industry remains standard, 90% of lenders rely on this for credit decisions. Many banks offer free FICO scores to card holders as an auxiliary perk.
What is a FICO score?
Your FICO score is between 300 and 850, depending on the information in your credit report.
The FICO score is calculated using several different pieces of credit data in your credit report. This data is divided into five categories: payment history (35%), quantity arrears (30%), credit history length (15%), new credit (10%) and credit mix (10%).
Lenders use this score to assess your credibility – the higher your score, the better your chances of being approved for credit cards and other loans.
According to FICO, a “good” credit score comes between 670 and 739, while the score of 740–799 is considered “very good” and 800+ is considered “extraordinary”. However, It is not necessary to chase a perfect 850 scoreIn most cases, credit card issuers do not distinguish a lot between scores above 720, so a strong score in this range is usually enough to secure. best Offer,
Which Credit Bureau checks banks – and why does it matter?
When you apply for one Credit cardThe issuer contacts a credit bureau (or several) to buy a copy of your credit report. The five categories included in your report are stated above.
Connected: What is a Good Credit Score?
You will see a credit report category, which matters to 10% of your score, is called “new credit”. If you have a lot of credit applications, it has been opened within a short time, it may be affected by you. credit score negative.
Imagine the following scenario: You have filled many applications for new credit (thinking about loan or credit card) in the last 12 months. These applications show your credit report as a “hard inquiry” and possibly damage your credit score.
Then you decide Apply for another new credit cardIn addition to your score a hit potentially, you can experience another road block.
The bank, which processes your application, may be worried about why you are applying for such new credit in a short time. As a result, there is a chance that you can be rejected for a credit card, even if your credit score is in good shape.
Knowing which credit reporting agencies use the card issuance to draw the report, can help avoid this problem. With this knowledge at the hand, you can bundle your applications (or bundle them, as the case may be) in such a way that you can improve your approval obstacles for a credit card you want.
Connected: To check 5 things before applying for your next credit card
Many credit card companies rely on a bureau on processing credit card applications. The credit bureau they use to buy a report may vary depending on the state you want and you want to have a specific credit card.
Credit Bureau here is usually used by three popular issuers:
- The city uses all three credit bureau, but usually draws credit reports from equipment or experience.
- The American Express uses all three Credit Bureau, but mainly draws reports from the experience, although sometimes even equipment or transnoon.
- Chase uses all three Credit Bureau, but does the exposure of the experience, yet can buy equifacts or transunion reports.
However, keep in mind that you can never know which credit bureau will use the Credit Card Company to ensure.
Ground level
Your credit report is an important part of your financial profile that can have a remarkable impact on your credibility. Understand which credit reporting agency banks use to review your credit, you may be able to increase approval Your next credit card application,
Connected: 4 general credit score myth
