The credit score is very important to be able to sign up for a Target card. It is a basic element to contracting any card. If you want to know the minimum credit score you will need to get this card, keep reading the article.
A Target credit card is a financial product. Financing products need credit approval from the issuing institution. For this purpose, different parameters are measured. For example, if we apply for credit, our creditworthiness, our income, and whether we have debts or collateral and guarantees will be checked.
When it comes to applying for a credit card, one of the most influential factors in granting a credit card is the credit score.
What is credit scoring?
This is a basis on which the lender decides whether or not to provide a loan or contract a financial product with its client.
To establish a clear measurement, various factors are considered when calculating the credit score. However, it is very common to use what is called FICO. This system looks at payment history, credit usage, credit history, types of credit in use, and new credit.
In general, similar measures will apply to any credit score calculation. This results in a number that provides the moneylender with the information of whether it is a good or bad credit history.
Is the same credit rating always applied when granting a credit card?
No. Each finance company is free to decide how it applies these rates. There are lenders with very high standards that do not allow low scores, and there are other companies with more flexibility.
Generally, the more demanding the card, the better the card conditions with lower interest rates and higher financing. On the contrary, more flexible and less demanding cards tend to have higher interest rates and lower financing amounts.
Target credit card credit score
At the time of writing, the credit score required to sign up for a Target card is 620. However, we should not assume that having a better score guarantees that the card will be granted.
In addition to the score, the financial entity will consider other elements to decide whether or not to grant you the product. Among the most important are:
- Your income
- Your level of debts
- The amount of active loans you have
- The amount of active cards you hold
As you can see, some of these factors are already included in the credit score analysis itself. These factors are also taken into account on an individual basis. For example, even if your credit score exceeds the minimum required but your level of debt is high, you may not be granted the card.
Can you improve your credit score?
Yes, and it is highly recommended. Anyone can need finance at one time or another in life. Maintaining a good credit history and a good credit score is important to avoid problems when applying for a loan or credit card if needed.
In addition to being in good financial condition, there are a few things you can do to improve your credit score:
- The first is to eliminate debts: mainly by focusing on financial debts and starting to pay them off in order from the oldest to the youngest.
- The second would be to try not to accumulate too many active financing products. It is generally preferable to have a single credit card with a higher credit limit than several active cards.
- The third would be to keep good control of bills, fines, and current debts. Remember that you can be put on a debt list simply because of debt with a telephone provider. The system will detect that you are on a debt collection list regardless of the reasons, and this can mean that your loan or card will be rejected.
Is having fewer credit cards better for your credit score?
Not necessarily. Having fewer credit cards is always a good idea. Accumulating a lot of financial products in the long term means taking on the risk of debts, interest on late payments, etc.
However, some people are better off with two or three low-limit credit cards than one high-limit credit card. In the end, it is all about having a sound credit volume.
What is complex and can lead to rejection by the borrower is the massive use of credit. For example, if credit card users regularly withdraw cash or pay other financial debts with them.