Now that you credit is improved in the FAIR range you can move to unsecured credit card.
What is an unsecured credit card?
An unsecured credit card for someone with fair credit is a card that his not backed by a cash deposit. These are traditional cards that can be used to pay for purchases and as such are subject to interest and fees, but the feeds and interest rates are usually lower than their unsecured counterparts.
In order to qualify for these cards the issuer will run a hard credit check to be sure that you meet their standards based on your FICO score. Generally a FAIR FICO Score would begin at the 580 mark.
In order to qualify for these cards the issuer will run a hard credit check to be sure that you meet their standards based on your FICO score. Generally a FAIR FICO Score would begin at the 580 mark.
How is my score calculated?
Payment History 35% - Have you paid your past credit accounts? Have you paid them on time? These include credit cards, retail accounts, installment loans, finance company accounts, and mortgage loans. Debt Utilization 30% - Of the accounts that you have, what percent of the credit limit are you currently using. The general rule is the lower the better. Length of history 15% - The longer the history the better. What is the average age of your accounts? Credit Inquiries 10% - Have you just recently opened or tried to open new credit? New inquiries represent greater risk and can negatively affect your score. Mix of Credit 10% - FICO scores consider a mix of credit cards, retail accounts, installment loans, finance accounts, and mortgage loans. You don't need to have one of each but a good mix can be helpful. |