Credit 101: The Good, the Bad, the Ugly
|October 25, 2011||Filled under Credit Cards|
Below you’ll find Capital One’s minimum criteria for Excellent, Average and Below Average credit. Usually companies offer more cash rewards for applicants with Excellent ratings, albeit to compensate for the free stuff you’ll most likely face higher Annual Fees or Variable APR after the first year. In these cases it’s always best to evaulate your options — there are plenty of rewards options for those with Average credit, too.
*You’ve not been more than 60 days late on any credit card, medical bill, or loan in the last year, AND
*You’ve never declared bankruptcy or defaulted on a loan more than once, AND
* You’ve had a loan or credit card for three years or more with a credit limit above $5,000.
*You’ve been more than 60 days late on more than one credit card, medical bill or loan payment in the last year, OR
*You’ve declared bankruptcy or defaulted on a loan in the past 5 years, OR
*You have limited credit history, i.e. students, recent immigrants, or authorized users on someone else’s card.
Bad (or “Re-Building”) Credit
*You’ve been more than 90 days late on a credit card, medical bill or loan payment in the last year, OR
*You’ve declared bankruptcy or defaulted on a loan more than once, OR
*You’ve been declined for a credit card in the last 3 months.
For those of you who feel nervous about online credit rating systems, this list will certainly help you gauge which credit cards you’d get approval for.
But Capital One also offers a 60-second evaulation tool for applicants who want to see if they pre-qualify for any Capital One credit cards. The tool uses your social security number to access your credit history and match you to a card, but the process is not an application and will not affect your credit score– a good option for anyone who isn’t sure where his/her credit rating stands.