Have you ever been turned down for a card or for a loan? If your answer is yes, you might have a low credit score. If your score is low, the perception is that you will have a hard time paying obligations or you cannot pay at all. Lenders are much wiser now. They only grant cards to those who have high or at least good credit scores.

There are criteria from which creditors refer to when judging whether to grant a card or not. They are known as the three Cs, namely character, capacity, and credit. Character, establishes your identity. They would want to know where you live and where you work. Companies will be interested on how long have you been residing in your domicile and how long have you been connected to your current work. It is stability that they are trying to review.

Meanwhile, for capacity, companies would like to find out how much credit you can afford based on monthly and annual salary. They will review expenses and other financial obligations to ascertain whether you can truly pay off debts. Last of the 3 Cs is credit. It shows how you handle credit transactions, be it cards, loans, or mortgages. For cards, they would like to know your credit limits, how much available credit balance is left, and whether you practice punctual payments of dues.

As mentioned above, credit companies would only grant credit cards without much ado to cardholders with good credit scores. Good credit score is defined as a score client obtains through payment of his card obligations including credit card management. For somebody to get a favorable score, he must have 700 or higher. If you have not reached this level yet, you have to go an extra mile in managing expenditures. Your objective must be to obtain a favorable score of 700 or higher.

To get a score like this, review your report to see how well you performed as a debtor. There might be details that you may find incorrect like name and address. Record shows that a significant number of reports have errors due to confusion or identity theft. Should you find incorrect information in your report, contact the bureau responsible. Make sure to report all information, especially those which can bring up your score. Credit bureaus will be more than happy to have your corrections as long as you present a proof.

Your report might be outdated. It might not contain employment history and some other data essential to having a favorable report.

Constantly monitor your credit standing. Be sure to keep your score high since this will be your access to good credit cards.

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