Introduction
Almost all of us knows that how much negativity a bad credit card can bring us but very few of us pays attention to the warning signs of bad credit. Bad credit card does not take place overnight; it starts to inform about its happening quite early. But we do not pay attention to it and fall prey to bad credit card. This over all affects the credit rating, the loan and other sources of financing, utilized by the borrower. The possible and most common bad credit card signs are:
Detail
Any pending payments shown in the history:
It is recommended to keep reviewing your credit history from regular intervals. At times there are accounts that are either mistakenly posted in the report or have any association with you but you don’t know about them. There may be chances that really they are your transactions and you actually forgot to clear the dues. If you have any such transaction or account on your credit report then surely you are heading towards the bad credit card. To avoid such situation, it’s better to keep a strong check on your credit report. If your financial institution is not ending them regularly for you, you can demand them yourself.
Late payments in report:
While using a credit card, we at times forget that it’s not our money and we have to repay it to the bank, which results in penalties too. Late payments and penalties create bad image and reflect bad credit card history. These late payments and penalties, cumulatively brings down the credit ratings of the borrower, resulting in the bad credit card report.
Features
Heard no for more credit:
One of the reasons for receiving a denial from creditors is the bad credit card report. Most of the people don’t take into consideration this point and put the whole blame on the creditor. Denial can also mean there is something wrong with the credit history. Either you have scored the limit or at the boundary line and granting you with more credit will actually exhaust your credit limit. In such situation, creditors at times refused to issue credit or issue it at a very high rate.
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You are asked for some security deposit:
While applying for some credit or to avail a new facility in which you are to make payments later, the lender may ask you to deposit some money as security. This is another sign of bad credit card history. This means that your credit rating is not enough and the lender is not willing to rake risk. He thinks that allowing you credit or later payment can be a loss to him. To cover that loss he asks for deposit to make sure he has something to cover his loss. There can be some more signs too for bad credit card history and it does not come immediately. It takes good time to for bad credit history to reflect in the report. Keep proper check on your credit report, make timely payments and don’t let any payment or dues pending.
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