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Yes,
you've gotten literally hundreds of credit card applications
in the mail and each and every one of them has said you have
been pre-approved. Of course it is 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 things, 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 You 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.
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Credit Card Information
»Credit Card
Information
»Types
of Credit Cards I
»Types
of Credit Cards II
»Various
Features
»APR
Explained
»Choosing
a Credit Card
»Credit History
»What
is a Credit Report
»Credit
Card Numbers
»Expiration
Date
»Application
Process
What to do When...
»Your
Credit Card is Stolen
»Your
Application was rejected
»You
Have no Credit History
»You have Credit
Card Debt
»You have to pay your bill
Business Owners Section
»How
Credit Cards are Processed
»Accepting
payments online
»Accepting
payments offline
»Protecting
Your Business From Fraud |
What To Do
Clean up your credit history! 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 may 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. Start paying
your bills on time. See about consolidating your bills so
you can afford to pay the monthly amount. Eliminate any
extra spending that isn't necessary and use that towards
your outstanding debts. Yes, this could take some time, but
in the long run it will be worth it.
Once you have cleaned up your credit a bit or established
some basic credit, let some time pass. Apply for the card
again. Once the creditor sees how hard you have 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 new credit and dig
yourself into a financial hole!♦
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