How to act to apply for the best credit cards?

No doubt you want to apply the best credit cards to get nice rewards, lowest rates and reasonable annual fee. And not just apply, but to be approved for it. There are some basic tips how to change your lifestyle to be qualified for the best offers. It’s not a tough task to improve your credit score by doing these simple things.

Stop carrying high balance

There is a rule: if the ratio between your debt and your credit limit is more than 1/3 (that means you carry balance of more than 30% of your limit), you can hardly get a new credit card. To find out what your ratio is you need to summarize all your debts (mortgage, car loan, credit cards) and divide the number by your total credit limit (again mortgage, car loan, credit cards). Though you cannot decrease your 20 years mortgage in a week, you can start being more accurate with your credit card balance – at least pay more than just a minimum payment each month.

Avoid late payments

Do you know that when you pay your bills online, the money appears in the account only within 3 working days? When you send a hand-written check by mail, delivery can take another couple days. So the point is: don’t wait until “pay due” date to submit the payment. Late payments negatively affect your credit score and they also are reason of miscellaneous fees and surcharges. You can save much money by being accurate in your financial matters.

Fix mistakes

Sometimes clerical mistakes can be a cause of black spots in the credit score report. The thing is: each misspelled character in your name, wrong address and lost check can damage your credit ranking. Fortunately, you can fix them if you’ve noticed them on time. Check your credit score once a year to avoid unpleasant errors in your report.

Manage old accounts

Sometimes we just stop using our old credit cards, but we never close that accounts. Banks usually close them in couple years if there is no activity, but you can make more use if it.  You can carry a credit card with credit limit if you pay with it at least once a month and then pay of the balance. This credit limit will decrease the ratio of your debts. Unfortunately, you can find out that your old card is not closed due to balance with unpleasant fees – pay it off as soon as possible and close the account.

Start building your credit

Someone can think: no debts at all are the best thing for your credit score. Unfortunately banks don’t like black horses and unpleasant surprises. They prefer to have business with those who already have credit history. If you don’t, start building your credit score right now. Apply for a credit card that does not require a credit score.