By Alain Diza
This article tells you exactly what you need to do if you'reever denied or rejected on any of your credit card applicationsboth online and offline. It may be easier to deal with than youthink...
No doubt, you've probably gotten literally hundreds of creditcard applications in the mail and online, and each and every oneof them has said that you've been "Pre-Approved".
Of course it's natural that this would lead us to believe thatthe application process is simply a formality. After all, you'vebeen approved already so no worries, right? Wrong! Many of theoffers that say you're "pre-approved" don't actually mean forthe credit card. I know it's misleading, but what they're reallysaying is that you've been approved to apply for your card, notactually receive one. Your actual approval will depend onseveral different factors, any of which can keep you off thereceiving end.
We'll go over some of the reasons for rejection and what, ifanything, can be done about them.
WHY YOU WERE REJECTED....
The most probable answer is your credit score. Although severalother things may have been taken into consideration, such asyour salary or time on your job, your credit score is usuallythe biggie. The catch here is that your credit history doesn'teven have to be bad, it can be blank and that will work againstyou just as much as a bad score will. Having no credit is almostas bad as having bad credit since the credit card companies haveno reference point to see just how you will handle your creditaccount.
If you have a history of making late payments on bills and otherloans, that will work against you. The credit card company wantsto know that you are a worthwhile risk before they issue you acard.
As I mentioned above, other issues also come into play. If youhave just started a new job, a creditor may want to wait a whileto make sure that you keep it. These are other factors that willbe considered if your credit history is less than perfect butnot a total loss.
WHAT TO DO ABOUT IT....
Clean up your credit history ASAP! This is the single best stepyou can take in improving your options when it comes to creditcards and other types of loans as well.
Most creditors are required to tell you why you were rejectedand what credit bureau they used to access your report. Youshould be entitled to a free copy of your credit report if thedata contained on it was used to deny your application. Checkwith the credit bureau to see.
If your credit rating is poor, take action immediately. Startpaying your bills on time. Look into consolidating your bills sothat you can afford to pay the monthly amount. Eliminate anyextra spending that isn't necessary and use that "extra" towardsyour outstanding debts. Yes, this could take some time, but inthe long run it will be well worth it.
Once you have cleaned up your credit a bit or established somebasic credit, let some time pass. Apply for the card (or abetter one) again. Once the creditor sees how hard you've beenworking to get your credit report up to par, you may just berewarded for your efforts. Be careful, though. The last thingyou want to do is go overboard with your new credit card and digyourself into another financial hell-hole! So be wary
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