Negotiating For Better Credit Card Terms

By: Barry Waters

People with a poor credit standing have already seen for themselves just how hard it is to secure a credit card with good terms. Failure to pay credit card debt or even consistently making late payments, contributes to a poor credit history resulting and in you receiving a negative rating from the credit bureaus. No matter what your reason is for failing to make good on your credit card obligations, whether it is because of pure neglect or simply not having enough money, your resulting low credit score will make it harder for you to get a credit card.
So how do you get a credit card if you have a bad credit standing? The best way to do this is to improve your credit score. It is fairly common knowledge that people who have higher credit scores stand a better chance of being given credit cards with good terms than people who have less than ideal credit scores. A higher credit rating will also give you the added advantage of being eligible for lower mortgage and car loan interest payments.
Some of the ways by which you can increase your credit score are outlined below.
Correct mistakes in your credit report. Since a mistake on your credit report can result in a lower credit rating, it is important to check these reports thoroughly before you apply for a credit card. This should be done well in advance, since correcting a mistake can take anywhere from one to three months and possibly even longer.
Pay your bills on time. One of the things that credit card companies look into when determining how eligible you are for a credit card with good terms is your payment history. Even a single missed payment can cause your credit rating to decrease considerably. Paying your bills on time is the single best thing you can do to raise your credit rating.
Pay off any remaining balance on your credit card. One other factor that will have an effect on your eligibility for a credit card with better terms is the amount of your balance compared to your credit limit. If you are interested in raising your credit score, keeping your balance below 25 percent of your credit limit is a good way to do just that.
Keep your past accounts open. People have traditionally opted to close their old accounts that were unused. With the way credit ratings are currently calculated nowadays however, it would actually be better to keep them open as a way to increase your credit score. Closing old accounts will actually have a detrimental effect in that it will shorten the length of your credit history, thereby decreasing your available credit, as well as increase the ratio of your credit balance in relation to your credit score. While closing your old accounts will only lower your credit score slightly, keeping them open may just spell the difference between being approved or rejected for a credit card with better terms.

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