Many reward credit cards provide bonus points for certain categories of spending like restaurants, groceries or gasoline purchases. Many people like the flexibility and easy payments that come with credit cards, so they may apply for a free credit card or even get a free gift card for using a credit card. However, the big issue that many people have when applying for a free credit card is that they may have bad credit.
What is Credit Score?
Credit score (also called credit report) is a report created by two different agencies. One is a credit bureau like Experian that determines credit scores for consumers, and the other is a private company called TransUnion that determines credit scores for companies and banks.
When someone applies for a credit card or gets a free gift card, their credit score is evaluated by the credit bureau, and the credit score is used to determine their credit score for applications from other lenders.
According to companies like SoFi, when someone applies for a credit card or gets a free gift card, their credit score is evaluated by the credit bureau, and the credit score is used to determine their credit score for applications from other lenders.
With both of these credit scores, an inquiry is counted as one point. But the average score for a new credit card is considered a composite score. That composite score is typically used to determine how good a credit card applicant is in general, and it’s based on an applicant’s credit score and other personal information like their age, the type of credit card they have, and whether or not they have been a victim of identity theft.
Why do I need a credit score?
As soon as you apply for a credit card, you’ll see the inquiry number. If you are approved for a credit card with that number, that means the credit bureau will be able to see your outstanding balances. You can then determine how much credit you should qualify for based on your current credit score.
In some instances, if you have a low credit score, a credit card approval will likely be denied. However, as you get better, you’ll be able to get approved for more cards.
There are a few credit score calculators to help you figure out your current credit score. The best one for the average American is the Equifax credit score calculator.
Credit Score Comparison
Equifax Credit Score Comparison Tool
The Equifax Credit Score Comparison Tool allows you to easily see the average credit score by checking your total number of accounts (including opened and closed accounts) and your balance. You can use this tool to figure out if you’re a suitable candidate to open or close a credit card. Credit Score Comparison Credit Card Comparison Tool What is a Credit Score? Credit scores are essentially a measure of your credit risk profile. They tell you how likely you are to repay your debts. They’re also used to determine how much you should borrow from the bank. The Credit Score Calculator will give you an idea of your credit score.