My Credit Card Application Was Rejected! Now What?!?
This article tells you exactly what you need to do if you’re
ever denied or rejected on any of your credit card applications
both online and offline. It may be easier to deal with than you
think…
No doubt, you’ve probably gotten literally hundreds of credit
card applications in the mail and online, and each and every one
of them has said that you’ve been “Pre-Approved”.
Of course it’s 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 factors, 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.
WHAT TO DO ABOUT IT….
Clean up your credit history ASAP! 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
should 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 immediately. Start
paying your bills on time. Look into consolidating your bills so
that you can afford to pay the monthly amount. Eliminate any
extra spending that isn’t necessary and use that “extra” towards
your outstanding debts. Yes, this could take some time, but in
the long run it will be well worth it.
Once you have cleaned up your credit a bit or established some
basic credit, let some time pass. Apply for the card (or a
better one) again. Once the creditor sees how hard you’ve 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 your new credit card and dig
yourself into another financial hell-hole! So be wary
Why was my credit card applications rejected, when I had settled all debts since 2000?
I had settled my debt in full, rec'd a discharged letter from the lawyer. No, I wasn't declared bankrupt. Credit bureu report shows no debt except my credit card applications check. Quest net still shows as pending, I had attached these letters together with my applications but still my credit card applications was rejected. Anybody can tell my why?
I cannot tell you why they were rejected, but I can tell you to apply again. You'll get it the second or third time around.
References :
The best way to establish credit is to get a secured credit card. Many well known banks offer them (put $300 into an account and receive a credit card). These will show up as reporting on the credit bureaus. Try to get a gas card like Beacon/Valero, JcPenney, Kohl's, apply for credit at a furniture store those are usually easy to get. Pick out a finance company like Wells Fargo Financial or a local credit union they are more forgiving with credit issues.
References :
Negative things can stay on your report for 7 to 10 years. I would get a report from all 3 agencies and check to see what they show. Experion, Trans Union, Equifax.
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If you don't show any debt, do you show any installment or revolving accounts? If you don't you may have been rejected due to lack of a credit history since your previous history is so old.
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Just keep trying there is no reason they shoukd reject you I would say you were simply unlucky
References :
if you've had bad credit, it's tough to get a credit card, since this is an unsecure loan to you. settling the debts is pretty bad too because it means you're paying less than amount owed. best solution to work and rebuild your credit is to open a secured credit card if need be, use it and pay it promptly and on time. after you are consistently paying this on time.. try again to get a new card.
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