No doubt about it, rejection hurts! Especially when you had to obtain a new and shiny credit card to keep it in your wallet, for emergencies, next vacations or to make a big purchase with little interest. Read this post and find out some steps to be approved in the next Credit Card application.
If you make a request for a Credit Card and it is rejected, do not despair. Instead, know what steps you can follow to discover why you were rejected, solve the problem and eventually get the plastic you want.
Receiving a rejection letter when you are waiting for a card can be annoying, but do not throw that sheet of paper aside. Instead, read it to find out the reason for the rejection and call the company for more details, if necessary.
These are some of the factors that, according to experts, may influence the denial of a Credit Card application .
1. You made an error in your application
- Maybe, for example, you lack employment or income information.
- These companies are not equipped to call a potential customer and say, you filled out your application incorrectly, or there is an error in your credit report.
- Maybe you have a common name and there is an account that is not yours in your credit report.
- Maybe they have given you previous information, a medical bill from a long time ago that you never received, that is current.
- That kind of thing can drag your score down.
2. There is a problem with your work history.
- If you were recently unemployed or changed jobs, you may have to wait at least six months or get an increase.
- Maybe your income is too low or you just have not been in your current position long enough.
3. Your credit is unstable
- You may think that you have a decent credit, after all, it only took you to pay your bills once the car broke down and after that shoe sale, but a creditor can see things differently.
- Maybe you have a bad credit history, you have been in default on your bills or you have not paid anything in the past.
4. You are having financial problems.
- You may have good credit, but if the lenders think you are applying for a loan because of a sudden financial crisis , they probably say no.
- If banks see too many queries, that raises a red flag.
5. Work on your credit.
- Whatever the reason why you were rejected, you should immediately order copies of your credit reports.
- Do not think, I will return the application within six months. Ask yourself, what exactly do you have to do to improve in six months?
- Depending on why you were rejected and what your credit reports are like, here are some steps to consider:
1. Pay all your bills on time or better yet, ahead of time.
- Set up your account automatically, so you never risk not paying an invoice on time.
- If you are a person who uses a Credit Card a lot, but you pay it monthly, consider paying your balance one or two days before the statement closes instead of the expiration date, even if it does not seem like you are always at your best. card.
- If you pay before the statement closes, it is reported as zero at expiration and is seen as a better customer and lower risk.
- It is a great way to quickly improve your credit score.
2. Pay your balances on existing credit cards or loans
- Creditors do not like to see a high rate of credit usage, the ratio between the amount of credit available to you and the amount you are using says a lot.
- If you have high balances, decreasing them will improve your credit score.
- Pay your debt first at 30 percent of your credit limit, then at 20 percent, then at 10 percent. Make it card by card.
3. Be strategic about closing cards.
- Sometimes banks get nervous if a consumer has too much credit available, but that does not mean you should start cutting the cards, experts say.
- If you close the card you have had more time, that affects your credit history, which affects your score. You do not want to cancel the relationships you’ve had for a long time.
- Consider closing retailers’ cards that offer few benefits and simply tempting you to buy.
- Many people end up with a lot of store Credit Cards. Those are the ones that have to be eliminated.
- Just do not close them all at once.
6. Find the correct Credit Card for you
- If the problem that led to your initial rejection was relatively simple to correct, say, an incorrect item in your credit report that you have disputed and eliminated, you should still wait at least three months to request another Credit Card.
- Each time you submit an application, it is a query about your credit and you want to make sure to spread it over time.
- If your rejection involved a doubtful credit or another major problem, it is especially important that you compare before you resubmit the application.
- It is important to think about what type of card will give you the most benefit, be it a low interest card or a rewards card that returns your money or airline miles.
- Then, verify that your request is accepted.
- Instead of sending requests by random email, go to the card issuer’s website, then call and ask what age they are looking for, what income level and job history they are looking for, ask the requirements well.
- If your requirements are too strict, call other card issuers.
Go shopping could finally pay, some banks are more rigid than others for a credit card application , some are reducing the number of customers and the type of customers they want. Sometimes, it’s just about finding the right combination.