Posted: 02/09/2007--25/11/2008 || Rate this Article: 3 || Views|| Sign In || Register ||Hello Guest
Submitting an application for a credit card can be exciting until you receive a negative response. Being rejected may be due to several factors, such as no credit history, poor credit history, mistaken credit identity, or limited work experience or income level.
If your application is denied, here are some things you can do for another try:
1. Confirm the response. If the answer you received is based on a vague explanation, contact the company's customer service department. Ask for a more specific or detailed explanation of the reason for your rejection. Take notes from the person's reply. If you are still not satisfied, ask to speak to the supervisor. But if the reply makes sense, ask what you can do to improve for chances for a later reapplication. When you have that information, thank the representative and review your notes to decide your next step.
2. Check your credit report. If you are told that your credit history is not strong enough to support this credit application, yet you know of no reason why it would not be, contact one of the credit report agencies (Experian, Equifax, or TransUnion) to request a copy of your credit report. Review it carefully and check for discrepancies, especially with regards to social security number, address, and the spelling of your name. If the report seems okay, contact the reporting agency to ask how you can strengthen your credit report before applying for a credit card again.
3. Pay all financial obligations. If you owe money to a creditor, no matter how old the bill may be, pay it promptly to clear your name. If you have paid a creditor late or missed payments, contact that company's representative to discuss a more responsible plan for paying your account. Take whatever steps are necessary to clean up your credit history and prove yourself committed to repaying debt. As the old accounts get paid up and new ones fall into a regular payment pattern, your credit report will begin to look more promising to potential new creditors.
4. Wait a little longer. If you have been working at your current job for less than six months, wait until you have been there a half year or longer, then reapply. Some credit institutions like to see a solid work history with an applicant employed at a current position for six to twelve months. This is especially true for those who have not worked recently or who have jumped from job to job in the past.
5. Get rid of other accounts. Pay off furniture bills, utility balances, car payments, and other obligations. Reducing your monthly payment fees will encourage a bank or loan company to approve your application for credit. One of the most common criterions for rejection is when an applicant has a high debt to income ratio, meaning that a high percentage of income is already committed to other debt. Clear some of these up by paying them down and you will improve your chances for getting a credit card.
6. Get a part-time job. If your personal schedule will support it, take a part-time job working another ten hours or so per week. The extra income may be enough to boost your eligibility for a credit card. Total income is another criterion that loan and credit institutions look at when deciding whether to approve a credit application.
Don't sit back and do nothing if your application for credit is denied. Take the initiative to review all the facts and improve all the areas that you can. Then apply for a low interest credit card and use it responsibly.
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