What do Credit Card Companies check in order to decide to extend you
credit?
Credit history
Bank statements
Employment history
School transcripts



Answer :

Credit card companies typically check several key factors when deciding to extend you credit. These factors help them assess your creditworthiness and ability to repay the borrowed money. Here are the main things they look at:

1. Credit History: This is a record of your past borrowing and repayment behavior. It includes information on how much debt you have, whether you make payments on time, and if you have any accounts in collections. A positive credit history with a good track record of repayment can increase your chances of getting approved for credit.

2. Employment History: Credit card companies may also consider your employment history to determine if you have a stable source of income to repay the credit. A steady job and a reliable income can be reassuring to lenders, showing that you have the means to make timely payments.

3. Bank Statements: Lenders may request your bank statements to review your financial stability and cash flow. By looking at your bank account activity, they can assess your spending habits, savings, and overall financial health. This information gives them insight into how you manage your money and if you have the capacity to handle additional credit responsibly.

In summary, credit card companies evaluate your credit history, employment history, and bank statements to make an informed decision about extending you credit. These factors help them assess your financial behavior, stability, and ability to manage credit effectively.