Applying For New Credit Cards Getting Harder As Credit Score Gets Lower

Ever since credit card companies have tightened their business, credit card holders have been having rough time dealing with credit cards. It isn’t getting any easier for those who want to apply for new credit cards either.

With the economy and the credit industry the way it is at the moment, a lot of credit card holders are probably unhappy with their credit cards and are looking to move to another credit card. Unfortunately, the days of cheap and easy to get credit card offers have ended. Nowadays, consumers no longer have the luxury of being able to choose from ten or more credit card offers arriving via mail. According to market research firm Synovate, credit card offers being sent to households this year are forecast to drop by 60%. Last year, it fell by 71%.

However, that does not mean that credit card companies are not looking for clients. They are, though they are getting very uptight about whom they want to take in.

For those who want to apply for a credit card, the most important thing that they ought to do is to know how they stand financially. This means checking their credit scores.

In the U.S., there are three major credit bureaus that consumers can deal with. These are Transunion, Equifax and Experian. Consumers can check their credit reports from them and they get one report free every year. The report will not, however give them their credit score which is the all-important number which determines if they get a favorable credit card or not. To get their credit score, they’ll have to pay around $10 or more for it, depending on which agency they choose. They can also get their scores from FICO through the website myFico.com, though this will cost higher.

Credit scores are usually grouped into categories: Poor (350 to 619), Fair (620 to 659), Good (660 to 749) and Excellent (750 and higher).

Consumers with excellent credit scores won’t have a problem finding a credit card. Those with fair and good scores will be able to get a credit card relatively easy though they will most probably have a higher interest rate compared to those who rate at excellent. Those with poor credit scores may be able to get a credit card but they will probably have even higher interest rates and a lot of fees to contend with.

For those with poor credit scores, getting a secured credit card might be a more viable option. A secured credit card more or less works like a credit card except that it requires a deposit which is basically the card holders’ credit line. There will usually be a membership fee and a setup fee as well.