How to Avoid Refusal On Issuing A Loan On a Credit Card?

How to Avoid Refusal On Issuing A Loan On a Credit Card?

Almost all of Americans live on tick. That’s the way most often we buy houses, cars, electronics, pay for studies at universities and colleges. Even daily expenses in the US are often paid with a credit card.

The crucial thing for obtaining credit funds is your credit history. It is, in fact, a proof of your reliability and solvency. The more scrupulously you have paid your previous loans back, the better is this indicator. The better the credit history and the longer it is, the lower the interest on future loans will be.

Credit Score

Credit history is reflected in the credit rating, namely the so-called Credit score. This is one of the most important indicators of a person’s financial reputation. As a rule, the rating is expressed in figures from 300 to 850. Accordingly, the higher the rating, the less likely you are to get refusal on your loan.

A credit history, as a rule, begins with opening the first credit card. However, a person may find himself or herself in a vicious circle: the bank does not issue a credit card, because there is no good rating. But at the same time it is impossible to build a high credit rating without getting any credit cards.

How To Improve the Rating

Here are some tips how to strengthen your chances of getting a credit:

  1. Apply for a secured credit card

The mechanism behind a secured credit card is as follows: you put a certain amount on the account, and then get a loan equal to the amount you have deposited. The deposit guarantees that the bank will receive its money back, if you will not be able to pay in some period of time.

  1. Get  a credit card if you have a bank account

Some banks may issue a credit on a card to their client even without a test with prepaid card product. The main condition is a significant savings or settlement account.

  1. Become the second holder of a credit account

Ask a main holder of a credit card to give you permission to use it as a relative.

  1. Get a credit card for a gasoline station or large stores

The main requirement is the availability of a social security number and a permanent source of income. Retailers can give both a prepaid card and an ordinary credit card. The only thing  to remember is that you can use it only in shops or at gas stations of this particular network. Money spent from the card must be replenished regularly.

So the main issue here is to pay all the loans back in time, and if you have no credit history or low credit score, to use those banking products that will allow to gain trust as a borrower again.

One Reply to “How to Avoid Refusal On Issuing A Loan On a Credit Card?”

  1. Now I do not use credit because I earn enough. But when I was a student, I often had to resort to credit cards, fortunately, I always repaid the debt in time

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