What to Do if Your Credit Card Application is Denied
Being denied for credit can be an unnerving experience. Many customers are unsure what reasons cause that people are denied for credit?
Due to less than favorable credit history, a lack of credit history or many other factors – a denial may occur for a variety of reasons.
Improve your credit rating. Pay all monthly payments on time and in full. Clear any debts or repay credit cards to lower their balances. Avoid opening new accounts to create a longer history with current creditors. Using these methods, your credit score should be improved over time.
Consider a secured credit card. Secured credit cards or lines of credit require collateral in the form of a deposit, or the equity within a home, vehicle or other asset. Secured credit scores can build solid credit, as they are reported to the three credit agencies on a monthly basis. Keeping the account in good standing ensures that the card will create a positive credit history while improving your credit score.
Monitor your Credit report. Monitoring your credit report with an annual printout can help to repair any mistakes that may have been made on the report. Fix any mistakes by contacting the company directly, in writing or by making the appropriate changes through credit reporting websites.
Contact the lender. On what grounds were you denied for credit? There are many reasons that potential card holders are denied. Did you have the minimum income requirements? Do you have enough credit history? Does the company offer cards to those with no credit, or bad credit ratings? Can you provide collateral to receive credit? These topics can all be discussed with the lender to increase your chances of being approved next time.
How can you improve your credit score to secure approvals in the future? Maintaining good credit history is the key to obtaining credit. Ensuring that all monthly payments are made on time and in full accounts for up to thirty percent of your credit report and are essential ways to improve your credit rating. Missing payments, making multiple late payments, defaulting on payments or declaring bankruptcy may appear on your credit report and account for a lower credit rating for up to seven years.
Being denied for credit is not the end of the world. It is important to remember that credit can be repaired, credit repair can be accomplished through debt repayment, budgeting personal financial planning.