Interested whether you're eligible for a credit card?
Eligibility is determined by your credit history and credit score. This small article will offer a brief overview of the factors that determine your credit rating.

How is your credit rating determined?
Whenever you purchase something on credit or have a credit card, the credit card company or store makes periodic reports to a number of credit reporting agencies. Those agencies keep records of your credit history - by looking at your payment record.
Most credit reporting companies take several factors into account. It is not easy to determine exactly how these companies determine your score, but the following factors are used: the amount of cards you have and the outstanding amount on each. They look at the payments made, how many of these payments were made on time, and how many were late payments. If you have missed any payments or defaulted on a loan, they will penalize you. They try to determine your assets in relation to your debts.
Each of these factors is given a certain point on a scoring table. The sum total of your score is your credit rating. A higher credit rating obviously means that you have a better credit rating.
What are the things that damage your credit rating?
If you have too much debt, you will be penalized in your credit rating. Furthermore, owning a lot of credit cards is negative for your rating. The most effective way to damage your credit rating is to skip payments or default on your loan. So whatever you do, never miss a payment. If you run into trouble with payments, contact the credit card company and come to an agreement as soon as possible.

What should I do to get a credit card?
If you are applying for a credit card, you should know that the credit card company will research your credit score. That is why your credit rating is so important. They have to determine the risk factor lending money to you entails. The higher your credit rating, the better deal you will receive from the credit company. Credit companies do not like giving credit cards to people with a low credit rating since the risk it entails is too great. Of course, the credit card companies want as many clients as possible, so they will only turn you down if you represent a real risk to them.

What can I do if I am turned down?
In most cases, there is not much you can do. Credit card companies do have to tell you why they turned your application down. The best you can do is to ask for a copy of your credit report. This will show you the reasons why you were turned down. Your best chance is to try and improve the areas where you have a low score. If you have a very bad credit score, you can always seek professional help. There are people who can help you repair your credit rating. With their help, you can ensure success on your next application.