Comments on: Credit Card Application: Getting Your First Credit Card

By: giggal abean

giggal abean — Wed, 22 Oct 2008 09:40:59 +0000

Don't get dejected when you find a rejection letter in your mailbox. Strange it might sound but the rejection letter brings two major advantages with it. It is a real opportunity, waiting to be exploited, provided we look towards it with the right attitude. Now, you must be wondering that what two big advantages does a rejection letter brings? Read on and enlighten yourself. 1. The first advantage that comes with a rejection letter gets its validity from a statute in the Fair Credit Reporting Act. This Act offers some good protection to credit card owners. According to this act whenever you are denied a credit for some reason, you have the right to know what circumstances or facts led to that rejection. So, if you are rejected because a particular credit rating agency has made adverse credit remarks in your credit report, the credit card company that has rejected you must state the name of related credit rating agency and their remarks to you. Further, the Fair Credit Reporting Act states that every rejected person is entitled to request a free credit report from the credit rating agency listed in your rejection letter or denial report. So, you get a free credit report. Read more from:http://www.credit-card-gallery.com/article/293,2_major_advantages_of_being_rejected_for_a_credit_card
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By: EMT13

EMT13 — Wed, 22 Oct 2008 09:38:59 +0000

I'm thinking you asked the wrong question. What you should have asked before you apply for new credit is: "What are my chances of get XYZ credit card if I have yada yada on my credit reports and my FICO score is XXX?" So if you haven't already applied for the card please at least know what is in your reports and what your FICO is currently. Once you have your FICO then you can register on creditboards.com and use the credit pulls database (link found at the top of the creditboards forums in the red bar). You must be registered and logged in to use it. If you have already been rejected then you'll receive a letter telling you what CRA they used. You then send them a copy of the letter and request your credit report. Then come back here or to creditboards and ask how you can fix whatever it was that made them deny you credit.
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By: Smoovy Loco

Smoovy Loco — Wed, 22 Oct 2008 09:36:59 +0000

Diane has a good answer, but I'd like to add more to it.

Anytime that you formally apply for credit, it creates a "hard inquiry", which can lower your score 3-10 points. This is different from a "soft inquiry" that may come from pulling reports yourself and preapproved offers that companies might send you. However with the new scoring system, that all might change…

It's been rumored that the new scoring system, FICO '08 may not penalize as much for applying for a lot of credit as it used to in the past, but that doesn't mean that you should apply for credit that you're not going to need or even more so use properly. Keep in mind that you should only use what you can afford to pay off on time every month, when it comes to credit cards. Applying, getting approved, and charging them up is the easy part. Paying them off, and paying on time is a lot harder.

I hope that his answer helps,

good luck and thanks for reading!
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credit analyst/underwriter

By: Diane

Diane — Wed, 22 Oct 2008 09:34:59 +0000

Getting rejected – No.

Having them run a credit check on you – Yes. Every time someone inquires about your credit, there is a small ding to your score. They disappear after a while, but it is assumed you are shopping around for more credit, and that is a bit of a risk.
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By: Charro#1

Charro#1 — Wed, 22 Oct 2008 04:32:05 +0000

Does getting rejected on a credit card application affect your credit?