Many people do not have a clue of why their application was rejected; especially young adults who take credit cards for granted. They are a necessity and everyone pulls out a credit card when they buy something, don’t they?
Older people (like me) remember a time when credit cards were mainly cards of local merchants and department stores. Use of the credit cards has been a revolution in our society and we now carry our plastic with us at all times.
The credit card is directly responsible for the growth of internet businesses that sell products online. Or maybe it’s the emergence of online shopping that caused a groundswell in credit card use?
The rate of credit applications has been on the rise for several years and credit cards are thought of as a necessity of life today.
Credit lenders advertise everywhere, offer cards to everyone and people rush to fill out those applications. Yet not all are approved. Why would a lender urge everyone to get his company’s credit card and then refuse to send a card to many who apply?
Human Error
One of the reasons for denial is simple human error. When you rushed to fill out the application, did you forget to enter some of the information?
Did you think some of the questions were too personal and none of the lender’s business? If you filled out the application by hand, is your writing legible?
No Savings or Checking Bank Accounts
The information requested on your application isn’t curiosity on the part of the lending institution – it is information needed to qualify you for credit.
One key part of the application that you need to pay special attention to is when you need to answer whether you have a checking and savings account.
If you don’t indicate any savings or checking bank accounts, your application will usually be automatically flagged as declined.
Late Payments & Credit Ratings
You should understand the fact that a lender does pull your credit independently whether you have applied for credit cards online or offline. If you know you have been late on paying accounts or have missed payments you should look for a credit company that advertises they can issue cards to slow pays or bad credit customers.
Your credit rating is what it is today – so if you know your credit is bad don’t apply for a high limit platinum card because you will just waste your time.
The credit rating is a three digit number available from credit rating bureaus. Your creditors report your payment records to them for most debts and even one or two late payments can reduce your rating.
There are laws designed to protect consumers if they are refused a credit card based on their credit score.
The lender must inform you if the credit rating is the reason for why your application was declined and tell you which of the three rating agencies made the report.
You are entitled to one free credit report each year from the three agencies but if you are denied credit they must send you a free report so you can personally see what is on your record.
Sometimes you may find an error has been reported and you will have the opportunity to have it removed and fixed.
Recommended Reading
- So, can a credit card company call you during non business hours for a late payment?
- How do I calculate my monthly card payment?
- How to check status on your application?
Rejection Can Be a Wakeup Call…
There are times when being rejected for a credit card is a wakeup call. If you pay bills late because you forget or are too busy to sent the payment in, being denied may be a reality check.
When controlling your application, the lender is looking for someone with stable economical situation who can pay his bills on time. So, if you’ve been denied for credit, find out why and take the steps you need to correct the problem.
