3 Steps for Facing Credit Card Application RejectionSeptember 28, 2010 - 9:06 am
Applying for a credit card is not a simple task where you fill in some blanks and are instantly approve for several thousands in credit. No matter how many options for making credit applications easy, there is still no way around carefully completely an application filled with your personal and financial information.
After the time you spent researching the various cards and then filling out the application form, you also have to wait to hear back on the approval. It can be a time-consuming, hurry-up-and-wait process but what happens when your reply is a denial? People in general often take rejection to heart and after having put the time into the application process, the denial hurts just a little bit more.
So what do you do if you have been turned down for your credit card application?
Don’t Give Up
A golden rule of credit is to never over-apply for credit. While it may ding your credit score to apply for more than one credit card, you can do more serious damage if you apply for every card on the market. During your initial research, pick 2-3 of the best cards that match your needs. If the first application is denied, apply for the second one. There is a likelihood that the first application had a unique requirement you just didn’t meet. If you have researched and applied for all three credit cards with no luck, it is defiantly time to take a serious look at your credit history.
Order Your Credit Reports and Score
The three major credit bureaus receive data reported back from all of your credit scores. The history will factor into a formula that comprises your credit score. Too low of a score and lenders will view you as a credit risk, thus denying you credit. If you’ve been denied credit, you have the right to request free copies of your credit report from the reporting agency used by the creditor within 60 days. You’ll receive a letter in the mail disclosing which of the three companies was used, TransUnion, Equifax, or Experian. You also have the right to request a copy of each report once annually at no cost to you. Credit scores are not supplied with the report and you’ll have to pay a small fee (about $15) to receive your credit score. Check over your reports to see where you stand credit-wise. Report all inaccurate information to the reporting bureaus to boost your score.
Opt for Another Card Type
If you find your credit is not up to par, contact the credit card company and ask about getting a different type of credit card. Secured cards are a good resource for boosting bad credit scores. It may not be your first choice for a credit card but if you have a low credit score and a blemished history, it may be the only one you qualify for at this time. When you have used your secured card wisely, paid off the balance in full each month, and have proven yourself to be credit responsible, the card company may allow you to upgrade to a traditional credit card within a 6 month to a year time period.