Board 8 > What does it mean when you apply for a credit card and you get a credit report?

(+) Yeah! (+)

Just start spending money.

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Congratulations to Rafael Nadal on a Career Golden Slam. - The Mana Sword

I applied for a credit card with my bank. It shows one of my credit scores (which ranks as "good" according to some websites and mediocre to others), and some stuff about understanding my credit score. It mentions nothing about the card. This is confusing me. I applied for another card in 2010 (I think) and I got rejected for not having a credit history (hilarious, since it was a student credit card).

How should I interpret this?

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Zachnorn Everything = overrated.
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But I don't have money to spend right now! Damn you, my education and my car!

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multiple updates tomorrow or i will publicly admit that zachnorn is better than me -Sess
Posted 3/5/12, with no more updates since...

But if you spend money you don't have, they'll see you're fit for a credit card.

You're just gonna have to trust me on this one.

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Congratulations to Rafael Nadal on a Career Golden Slam. - The Mana Sword

Anri's half right. Basically, if you don't have a credit report, then banks have no idea what you're gonna be like when you borrow money. Doesn't mean you won't get credit, just means you'll probably be charged a high interest rate, which is bad news when you wanna get a mortgage.

You can build up your credit history a number of ways. Having and using an overdraft responsibly, having monthly payments and not missing any of them (such as a phone bill), not apply for too many products on credit (every application you do, even if it's successful affects your credit history and multiple successful applications in a short time can bring it down), not incurring charges on your cards, etc.

Banks do not like the idea of lending money to people they don't know can pay it back, which is why people with a better track record of repaying credit and managing money are rewarded with lower interest rates of things like credit cards, loans and mortgages.

Hell, even if you don't need credit, it's a good idea to build up your credit history. I've had a ton of customers who call saying that they've never needed credit in their life, but need a loan because they've had an unexpected payment come up and then don't get accepted for that very reason.

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