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My Credit Card Application Was Rejected! Now What?!?
By: Alain Diza
No doubt, you've probably gotten literally hundreds of credit card applications
in the mail and online, and each and every one of them has said that you've been
"Pre-Approved".
Of course it's natural that this would lead us to believe that the application
process is simply a formality. After all, you've been approved already so no
worries, right? Wrong! Many of the offers that say you're "pre-approved" don't
actually mean for the credit card. I know it's misleading, but what they're
really saying is that you've been approved to apply for your card, not actually
receive one. Your actual approval will depend on several different factors, any
of which can keep you off the receiving end.
We'll go over some of the reasons for rejection and what, if anything, can be
done about them.
WHY YOUR WERE REJECTED...
The most probable answer is your credit score. Although several other things may
have been taken into consideration, such as your salary or time on your job,
your credit score is usually the biggie. The catch here is that your credit
history doesn't even have to be bad, it can be blank and that will work against
you just as much as a bad score will. Having no credit is almost as bad as
having bad credit since the credit card companies have no reference point to see
just how you will handle your credit account.
If you have a history of making late payments on bills and other loans, that
will work against you. The credit card company wants to know that you are a
worthwhile risk before they issue you a card.
As I mentioned above, other issues also come into play. If you have just started
a new job, a creditor may want to wait a while to make sure that you keep it.
These are other factors that will be considered if your credit history is less
than perfect but not a total loss.
WHAT TO DO ABOUT IT...
Clean up your credit history ASAP! This is the single best step you can take in
improving your options when it comes to credit cards and other types of loans as
well.
Most creditors are required to tell you why you were rejected and what credit
bureau they used to access your report. You should be entitled to a free copy of
your credit report if the data contained on it was used to deny your
application. Check with the credit bureau to see.
If your credit rating is poor, take action immediately. Start paying your bills
on time. Look into consolidating your bills so that you can afford to pay the
monthly amount. Eliminate any extra spending that isn't necessary and use that
"extra" towards your outstanding debts. Yes, this could take some time, but in
the long run it will be well worth it.
Once you have cleaned up your credit a bit or established some basic credit, let
some time pass. Apply for the card (or a better one) again. Once the creditor
sees how hard you've been working to get your credit report up to par, you may
just be rewarded for your efforts. Be careful, though. The last thing you want
to do is go overboard with your new credit card and dig yourself into another
financial hell-hole! So be wary.
About the Author:
Alain Diza makes it easy to acquire a large selection of premier credit cards
designed specifically for your needs. Access his "insiders-only" selection of
credit cards and financial resources today at: http://www.onlinecreditcardsdirectory.com |
