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My Credit Card Application Was Rejected! Now What?!?
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....
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.
Alain Diza is an Ex-Enron survivor, turned Internet Marketer,
Real Estate Investor, and published author who partnered with
financial credit industry 'guru' Joe Lloyd, to negotiate the
arguably largest & most competitive online selection of
highly-targeted credit cards in the industry to date. Get your
own free credit card designed specifically for you, at Alain's
"insiders-only" site: http://www.onlinecreditcardsdirectory.com
MORE RESOURCES:
Credit - Google News
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