Your report won’t give your actual score, however; you need to pay $10 or more for that. Or you can go to myFico.com and pay $15.95, which also gets you access to a calculator that lets you see how actions, such as paying off a debt, would improve your score.
Getting a new card shouldn’t be a problem for anyone with excellent credit. If your credit is fair to good, your interest rate might be as much as 8 percentage points higher than someone with excellent credit. You can probably get a card with a poor score. But expect a slew of fees that might not make it worthwhile.
Weigh the repercussions
Before you apply, consider whether you might also be seeking a mortgage or car loan in the next year. Applying for a new card can shave a few points off your score. The same is true if you open a new card, since the new account will bring down the average length of your credit history. The negative impact usually disappears after about a year. For the near term, however, a difference of just a few points could end up costing you, or determining whether you even qualify for a loan.
“Particularly for a mortgage, every single point is going to count,’’ said Greg McBride, an analyst with Bankrate.com.
For the same reasons, be careful about closing old accounts once you get a new one.
Determine your needs
If you’re prone to carrying a balance, your top priority should be a low interest rate. Also be on the lookout for balance transfer fees; many banks now charge up to 5 percent.
If you’re trying to budget, you might want to avoid rewards cards. They tend to have higher interest rates, and you might be inclined to spend more under the premise that you’re earning points.
If you pay off your bill every month, interest rates have no bearing on you and the world of rewards opens up.
For personalized recommendations, punch in your information at BillShrink.com or Mint.com. You can also comparison shop at sites like bankrate.com, cardhub.com, and lowcards.com.
Candice Choi is a personal finance writer for the Associated Press.
