Many people who have a credit score are under the mistaken impression that it is used only when they apply for a loan.

There are several areas where your credit score is a big factor - including when you apply for a credit card. When you do not know your credit score and apply for a credit card, these are some possible outcomes:

• If you have a low credit score, your application will be rejected right away. This will have a negative impact on your score.
• If you think you might have a bad score, you may decide to make multiple credit card applications, hoping you will qualify with at least one lender. This is a self-defeating strategy as a low credit score automatically disqualifies all your applications. Making multiple applications and receiving multiple rejections will cause your score to drop substantially.
• Banks may be unwilling to increase your limit if you do not have a good enough credit score.

All these scenarios can be averted if you check your credit score before you decide to apply for a card. If you have a low score, it is worthwhile to spend some time on improving it so that you do not face rejection and a further decrease in your score.

dvweek.com can help you get your credit report for free and work with you on improving your credit score, if required.