When credit card companies determine whether they will accept your application for a credit card there are 4 categories you might fall under:
1. Excellent credit -You have no missed or late payments or have low debt vs. earnings. With excellent credit you are low risk and will likely be approved for loans or credit cards, get the best rates of interest and have the most financial flexibility.
2. Average to good credit - You have 1 or more late payments but no missed payments. There are still many loans and credit cards available to you. You still qualify for good interest rates and rewards cards.
3. Bad credit - You have high debt, missing and late payments and/or bankruptcy. Certain banks cater to people under this category. Consider a secured or prepaid card which should help to rebuild your credit if you make payments on time.
4. No Credit - Certain credit cards cater to people in this category. This category means no credit history. It is usually young people or new immigrants under this category. Your income, your credit history, and your debt level are an important factors for in the type of credit card and credit limit you may qaulify for. Students should consider a student credit card to establish credit history. Others with no credit history, such as new immegrants to the USA, may consider applying for a secured credit card, or a store credit card to begin building their credit history.
