Prevention: Before You Apply
If you’re considering applying for a new credit card, first check your credit report and make sure there are no mistakes. Take a look at what the credit card requires for qualification, which can be found along with an application for a new card, on the company’s Web site or by calling a customer service line.
One common mistake people make is to assume that “as long as they’re paying bills on time that they have good credit,” Detweiler says. But about one-third of your credit score is actually determined by how much debt you carry. “The ideal ratio is 10% or less of available credit,” Detweiler says.
Related Articles
Related Links:
Are You in Denial About Your Money Matters?
4 New Rules That Matter to Your Credit Score
—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.
- 1
- 2
