What Does My Credit Score Mean?

Bad Credit

Bad credit is a negative rating given from the credit reporting agency usually associated with anyone whose credit score of 669 points or lower. Skipping payments for an extended period of time is the leading cause of bad credit. Whether non-payment is willful or due to financial problems, it can still result in a negative rating. However, lenders are more willing to work with individuals who contact them to inform them that they are having issues meeting their payment deadlines.

What Causes Bad Credit

• Making late payment of balance frequently


• Skipping payments frequently


• Exceeding card limits


• Declaring bankruptcy


• Having no credit

Bad credit can make it very difficult for someone to take out a student, auto or home loan, secure an apartment, or participate in any number of lending programs. It can be very difficult for someone with bad credit to increase their credit rating because most credit card companies are hesitant to issue a credit card to someone with bad credit or no credit. Applying for a loan becomes a much more detailed and lengthy process, because someone with a credit score that is low is considered a “credit risk”.

Fair Credit

Fair credit is a neutral credit rating issued to anyone with a credit score of 670-699. A fair credit rating shows credit card companies and money lenders that you do a fairly decent job of making you payments on time but still occasionally have issues. If you have fair credit, a lender may require additional documentation before a loan will be approved.

What Causes Fair Credit

• Occasionally making late payments of balance


• Occasionally skipping payments


• Having very little credit history

People with fair credit may have difficulty being approved for a credit card by some companies. Not all credit card companies or money lenders will reject an application from someone with fair credit, but difficulty may arise from trying to obtain a loan or credit card with a lower interest rate.

Good Credit

A good credit rating is applied to someone who has a credit rating of 700-729. People with good credit usually have no problem being approved for credit cards and loans with low interest rates.

What Leads to Good Credit

• Making payments on time and in full


• Having a fairly lengthy credit history


• Disputing unfavorable inaccuracies in your credit report

People who have good credit are able to borrow more money, with more ease, at lower interest rates. Many potential employers may also look at your credit rating and history to judge your level of dependability. Having a good credit history may also help you gain employment in some situations.

Excellent Credit

People with excellent credit usually have a credit rating of 730 or higher. People with excellent credit tend to make big purchases and/or loans and pay them back in full and as promptly as possible. Several years of this type of behavior can lead to an excellent credit rating. Credit card companies and banks see you as a responsible person and consider you not to be a credit risk. People with excellent credit have the ability to obtain credit cards and loans at the lowest possible interest rates.

What Leads to Excellent Credit

• Making large credit card purchases and paying them in full and on time


• Having several credit cards with a “zero” balance at the end of each month


• Disputing unfavorable inaccuracies in your credit report


• Never having late or short credit payments

Having excellent credit can take years to achieve. Once you have achieved an excellent credit rating you may become eligible for deals and rates not available to others with lesser ratings.

To learn more about credit and find the credit cards you are eligible for, please visit Credit Card Details.

Visa IPO - $10 Billion

Visa, the largest credit and debit card payment processor in the United States is slated for an IPO in the first quarter of 2008. The IPO is estimated to be worth $10 billion, the second largest in U.S. history. The first largest came in 2000, at the height of the dot-com boom. During that time AT&T raised $10.6 billion to expand operations.

Visa's closest competitor, MasterCard, went public about a year and a half ago raising $2.4 billion (17th largest IPO in U.S. history). Over that time MasterCard's stock climbed five-fold from its initial offering of $39 per share to $193 as of last week's closing (11/9/2007).

The demand for Visa stock is expected to be high since they have the largest credit card processing network in the U.S. Last year they processed 44 billion transactions worth $3.2 trillion. MasterCard was second by processing 23.4 billion transactions worth $1.9 trillion.

Buying Christmas Presents with Credit Card Rewards

It's almost that time of year again: Christmas shopping time. You know, where you navigate through overcrowded malls, wait in ridiculously long lines and spend way more than you said you would. This Christmas why not use a little strategy when it comes to Christmas shopping. Credit card companies are always eager to unload their newest rewards card to consumers in hopes that they'll rack up enough in purchases to outweigh what it will cost in rewards. Now before you curse credit card companies for contributing to the country's debt crisis keep one thing in mind: credit card companies still make money even if you don't pay a dime in interest. Every time a credit card is used for a transaction the credit card company charges the merchant a percentage of that transaction as a "transaction fee." In addition, credit card companies partner up with other retailers to offer rewards so they don't incur the entire cost (if any) to issue those rewards. So in essence, you get rewards and don't pay interest (provided you pay the balance in full), the credit card company gets money in transaction fees and the retail company receives money from the partnership agreement with the credit card company. Everybody wins!

So let's get down to business. In order to maximize the reward points that you can put toward Christmas presents you'll need to find a credit card that partners with big name retailers like Target. Big name retailers offer multiple bonus points per dollar during the holiday season (Target usually offers 9 points per dollar). This allows you to maximize the amount of points you receive so you can get more free Christmas presents. On top of that, most credit cards offer bonus points (usually valued at $50) the very first time you make a purchase.

So if you plan your Christmas shopping right you will have 1) planned a budget and saved enough cash to accomodate that budget, 2) found a credit card that offers rewards and is partnered with a big name retailer, 3) purchased MOST of your Christmas presents with the credit card, 4) used the rewards points to do the remainder of your Christmas shopping and 5) paid the credit card balance in full when the bill came in. All said and done you will have saved yourself a decent chunk of money that you can put towards a lavish Christmas dinner or sock it away under your mattress to plan for your next vacation. Being credit card savvy really can take you a long way.

To Apply Online for Rewards Credit Cards visit www.CreditCardSchool.net or www.CreditCardDetails.com.

What Was the First Brand of Credit Card?

If you said Diner's Club you're 100% right! Anything else is just absurd. Diner's Club was started in 1950 as a means for salesman to be able to conduct client lunches and not have to shuffle for cash. The first Diner's Club Cards were introduced by Frank McNamara, Ralph Schneider and Casey Taylor. They were given to 200 of McNamara's associates and accepted at 14 New York City restaurants.

As the first branded credit card, Diners Club didn't actually extend credit to its cardholders. The cards were issued to society's upper echelon and monthly balances were expected to be paid in full. Before long, however, two more credit card companies entered the scence and forced Diners Club to become more than just a means of paying for client lunches. American Express and Carte Blanche quickly penetrated this unchartered market with cards of their own. To compete Diners Club expanded internationally.

Today Diners Club is co-branded with MasterCard. It's rare that someone will show you their new Diners Club Card. It's either MasterCard, Visa, American Express or Discover. It's important to know how it all started though. Credit must be paid where credit is issued. Thank you Diners Club for issuing the first brand of credit card that increased the number of ways that we can finance life!

For more credit card info. and online applications visit Credit Card Details.com.