10:17 10 October 2013
A higher credit score can be given to those who make timely payments for a relatively long period as well as to those who do not use a big percentage of their credit limit. Though credit scores may be effective, it discriminates individuals without credit history along with those individuals who have bad credit history making it more difficult for them when applying for a loan.
Blacklisting or Universal Credit Rating
The choice of preferred customer depends on the lender itself. The rejection of applications from a credit card lender does not mean that other lenders would never accept your applications. The credit rating metrics vary for every lender and the range of products offered differs from scores obtained. More personalized and targeted offers are given to the new customer so as to increase the customer loyalty quotient. The measuring criterion is never published and not universal.
The past interactions that you had with the creditor are also verified to understand the profiling of customers and their respective credit score.
Ways to Boost Credit Score
When your credit card affects your credit rating
Having too many applications will negative effects to your credit rating. All applications are recorded in your file so every application refused will likewise get recorded and such cases will greatly affect your credit rating. It will look like nobody wants to lend you or you have enough credit cards so why should anybody issue you any further ones? Just choose one or two of the best cards available and make sure you afford repayments for whatever purchases you made using them.
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