rebecca writes 78

Essay guides and tips

United States Debt Crisis

Nowadays, companies have begun to give details about how maxing out a credit or filing for bankruptcy can affect people’s credit score. There are many actions that affect credit scores including the financial crisis. It is important to know that people with the same credit score can have very different credit profiles: fewer or more accounts, a longer or shorter credit history or a different mix of accounts.

Post-Crisis Economy

Good credit is essential in our post-crisis economy if you want to have the same opportunity as the lenders. As for the credit scores, they were meant to evaluate if you had an acceptable credit rating. Before the US financial crisis it was easy to get loan terms with a lower credit score. Even people with very low credit scores used to get the desired loan. No score was too low for you to get a loan.

Once the U.S. financial crisis is over, credit card issuers are in search for customers who present no risk and have high Fico scores. Now rewards cards are in power. If you have excellent credit scores, you will be certainly chased by issuers in order to become their customer. Credit scores are extremely important. If you have average or sub-average credit scores, you are not the best option for the issuers.

Credit Scores

Nowadays lenders ask for 740 credit score for the best level of interest of the banks on loans. If you have lower scores it means that the rate will be higher or that you will not get any loan. If you have high scores you will be offered credit card and balance transfer. On the contrary, if your scores are low you will have limited access to credit. So having good credit scores is essential these days. If your scores are low, it will take longer to get a loan. But you can progress and you can finally hit the 740 mark if you learn how to use credit better.

After the U.S. financial crisis, the best options for you when choosing a reward card are according to three major categories: travel, savings, and cash back. Travel cards offer the richest returns but you should choose the right card and you should know how to use it. As for savings, these types of cards are meant to help you save money, pay your mortgage and get discounts. Cash back cards are considered to be good and a simple choice for you; more than that, you can get discounts.