Credit Card Application

Nataliya Yakushev asked:




Yes and no – it depends in good part on your timing.

Yes, it hurts your credit score if you’ve submitted other applications in the recent past. To Equifax, Experian and TransUnion – the three main credit bureaus in the U.S. – as well as potential lenders, applying for lots of credit cards in a brief period of time is viewed as desperation. Trying to open several lines of credit in the span of a few days or weeks makes them think that you’ve been turned down and you’re scrambling to find another source.

No, a merchant credit card application really won’t hurt your score if it’s been weeks or months since the last time you applied for credit. If you wisely wait a few weeks or months between submitting applications, your score might take a very small hit. However, if your score is already good or better, the hit you take will be very minor and nothing to worry about.

It’s helpful to remember that lenders are for-profit enterprises, and if your score is good, they’ll still extend credit to you – reluctantly – in the hopes of making money from your account. However, they avoid risk like it’s an infectious disease, and when someone applies for a store credit card, car loan, cellphone account, or any other line of credit in a short period, it often means one of two things to them:

You’re desperate to get anyone to extend credit to you; or You’re the victim of identity theft, and the thief is trying to open as many credit lines as possible to defraud the lender and put you in heaps of trouble.

It’s also helpful to remember that new credit applications comprise 10 percent of your total score. That’s not a big chunk, but when it comes to your credit score, every little bit helps. Within that 10 percent, the following credit items are taken into consideration:

How long it’s been since the last credit inquiry on your name The time since recent openings of new credit accounts by type The number of recent credit inquiries (like your store credit card) The number of recently opened lines of credit, proportion of new accounts to total number of accounts, and type of credit account

Therefore, a store card application can hurt your credit score either a tiny bit or more substantially. It depends on your current score, your credit management, and your timing. If you have a very good credit score and you happen to open two new lines of credit in a short period of time, don’t sweat it. Your credit score can handle a slight dip. Nevertheless, if your score could use some polish, it may take a bigger hit in the same circumstances. At the same time, these new lines of credit could eventually help your score if you pay your bills on time and keep your balances low. It’s all about how well you handle your credit behavior, including your store credit cards.

Susan

Lindsey Rowley asked:




In spite of the large numbers of folks using bank cards world-wide, you can even find more that are rejected whenever they send in a new credit card application. There is certainly ordinarily a contributing factor that explain why this request is denied. It is vital for you to work with repairing your credit-worthiness to enable you to some day be given a card from a respected provider.

Every time you apply for a credit card, your credit ranking is reduced whether you are accepted or not. Possessing a couple of rejections reflecting regarding your credit score will mean a reduced credit score. Therefore, it is crucial to not frequently apply for bank cards if you discover yourself getting turned down every time. You need to wait around 3-6 months in between applications, also consider the reasons regarding the reason you may be rejected.

Most banks need you to be eighteen years old and also have a dependable income source. It doesn’t mean the credit card application is going to be straight away ok’ed the moment you accept a job. You need to stay in your current employment status for around half a year prior to trying for a charge card. This kind of proof of job security help to make it more likely for someone to give you the line of credit.

Having a strong credit history will influence whether you will be provided with a credit card. Financial institutions are getting to be much more unwilling to conduct business with a person with a poor credit history. Tardy payments, overlooked payments, along with letting bills go to collections will certainly all have a very damaging impact on your credit rating.

Things you can do to raise the fico score are paying the bills when they’re due, getting a modest loan and paying it off on time, as well as keeping a check of your fico score to look for any sort of fraudulent information or identity theft.

When filling in the credit card application, be sure you give as much info relating to yourself that you can. In addition, ensure that this info is very sound. Companies can discover the validity of the facts you supply them. Nearly all will certainly automatically refuse an application that contains any fictitious information. Lying on the application will do zero to help you better your credit ranking.

Having a credit card application ok’ed shouldn’t be an arduous task. Avoid going overboard when getting a bank card. Only put in a single credit request every three to six months to stop hurting your current credit ratings. Make sure that you have a steady job and offer substantiation that you can pay back your bill on time in advance of applying for a personal credit line.

David

Chris Dodd asked:




Selecting Your Credit Card Application

The first and most important step in applying for credit cards is being absolutely honest. How is your credit rating? Your credit score is going to be a major factor in the application process to grant you access to a revolving line of credit. If you don’t know your credit situation, I suggest that perhaps applying for a credit card is not your best option right now!

Choose a card according to your credit rating.

If your credit is poor to fair, apply for a credit card with the lowest APR and don’t worry too much about the rewards. Normally shouldn’t apply for the top rewards cards with fair to poor credit because they are reserved for excellent credit. When you have improved your credit score, then apply for one of the best credit cards with rewards like the chase freedom card.

If your credit is poor, apply only for credit cards that report to the major credit bureaus. Orchard bank credit cards are good for this and an excellent way to start rebuilding your credit.

If your credit is good to excellent look at credit cards offering cash back or shopping rewards. Just make sure there are no annual fees.

If you need a balance transfer credit card, make sure they are providing you with a 0% APR for at least 6 to 12 months. Chase visa cards are a very good choice for this purpose, if you would like more information or apply for a visa card, you can review chase credit cards [http://www.billsaddup.com/CreditCards/chase_cards.htm] and other card offers here.

Quite often many people are confused after they are rejected during the credit application process. In some cases, consumers that were given a loan are then rejected for a card even with a lower limit.

You should understand a few basic principles of how a bank or credit card company views you as a potential customer.

Take a typical hard working person that has a loan and then applies for a credit card with a an average credit limit. There was no problem getting the loan but the credit application for the card was denied. What happed? You need to think about how credit works and the difference between a loan and a visa or mastercard.

Normally it’s easier to get a line of credit for a home loan or personal loan than it is for a revolving line of credit such as a credit card.

An installment loan and a credit card have very different attributes and each is treated differently by the finance company when they make the decision to approve you. A loan is for a pre-set repayment amount on a monthly basis whereas a credit card is a revolving amount and is open ended and can be used whenever a consumer wishes to use it.

The main difference is that credit cards are unsecured debt but a loan is secured by your assets or the item itself and your down payment, which means there is much less risk by the creditor to grant you the loan. Technically you have something that the bank could take if you default on your payments.

Most people treat loan payments as the same as any other bill, when it comes to payments. Usually their priorities in debt repayment go in order of paying for the mortgage, installment loans and last but not least credit card debt. The problem here is that credit card debt is usually the one that causes us to a have poor credit rating.

The average consumer is more inclined to make their mortgage and loan payments well before paying their credit card. So, just from this fact alone, credit card debt takes the back-seat as far as most people are concerned. Credit card companies know and for this reason alone it is a greater risk. Don’t forget that credit cards are typically unsecured, increasing the risk to the lender and ultimately making it harder to obtain credit.

Most of us don’t even think of credit cards the same as a loan with re-payment requirements which ultimately impact your credit score, especially when credit cards get abused. A credit card is a loan! It is borrowed money!

Why don’t consumers view their credit cards as real debt?

I think it is due to the fact that it is a line of credit and easy to get at. Plus there is no approval process required before items are purchased. Credit cards are viewed quite often as cash in the bank account. Banks are cautious when lending money on credit cards for this exact reason. Credit companies know all too well how we think of money and credit.

Louis

Jason Deines asked:




Thinking of applying for a credit card? Not sure whether or not you will be approved? Well you are not the only one. Society today seems to revolve around the all mighty dollar and possessing a credit card not only can open doors but also it can come in handy in emergency situations.

If you are uncertain if you have what it takes to get a credit card or if you have been denied already from a financial institution and don’t know why, here are some common reasons why credit card applications are denied.

Human error – whenever information is sent from one person to another there is always the possibility of the information not being accurate or keyed into the database incorrectly. If you feel this is the case, call the customer service department and verify the information they have in their system. Insufficient job history – creditors prefer to grant credit to individuals that have a good job history with a single employer. If you are young and just starting to work you may want to wait until you have a few months on the job. Insufficient income – your credit application may be denied if the creditor feels your income does not meet their minimum requirements. Poor or non-existent credit history – if you have a bankruptcy or a history of late payments you may find it difficult to obtain a credit card. Overtime, if you pay your bills on time and improve your credit score you may be successful at being approved. If you have no credit history you will need to build one. Residential history – how long you have lived at your current and possibly previous residence can be a factor. If you have recently moved but you lived at your previous residence for a long period of time you may want to include that on the application.

If you have applied for a credit card and your application has been denied it is important to find out the reason why. By law, the credit card issuer is required to send you a letter telling you why your application was denied. If you find that the letter does not clearly state the reason then you should contact the customer service department and ask them for a specific answer. They are required to give you one. You may also be able to get additional information that will help you change your status from denied to approved.

If you are determined to get a credit card then I recommend applying for a secure credit card. These are fairly easy to obtain because you must deposit funds into a bank account and you will be issued credit accordingly. This is a great way to build and even rebuild your credit history.

Edward

Paul Sarwana asked:




A credit card application can feel like a shot in the dark, what enables a consumer to get approved for a credit card? There are several factors that will prevent a person from getting a plastic money. Remember that companies want to approve you, after all, you’d be their customer. Don’t give them any reasons you don’t have to turn you away.

The first thing that some people overlook is age. To get a card you must be at least 18 years old and either a full time student or have a source of steady income. When a credit card company invests in you they’re doing so with the belief that you have the maturity to operate a card and not abuse it.

But what is maturity? To a lender, maturity is stability and proof that you pay your bills on time. Paying bills on time, even for a few months, can dramatically improve your credit history and your chances of getting a card. Not doing so can be fatal to any credit card application. Holding down the same job and residence is another important factor. Stability is also seen as maturity and reinforces your image to the company that your income will be secure.

Depending on how well you do paying your bills on time and your income level, some cards maybe out of your reach. But there are cards that are within your reach and establishing your ability to use those plastic money responsibly.

Using only 50% of the line of credit dramatically improves your credit score and thus your ability to get ones that offer more options and rewards. However, having a large number of credit cards that are constantly at their credit limit is counter productive as it will lower your credit rating. Remember that the key word here is responsibly.

In applying for a card you have to assume that every question they ask will be verified. The issuer is giving you the opportunity to run up a debt as high as your credit limit. They want to make sure that you’re a sound investment. All the questions need to be answered truthfully and completely. Leave nothing blank. At the very least you own it to the lender that’s going to run the checks on your financial background.

In dire cases you can turn to a guarantor for your card. In essence this means using someone else’s credit to allow you to use your own card and build up your credit history. However, there might be times when even that option is closed, and for those individuals, there are secured credit cards. Secured cards operate like normal cards except they require an upfront deposit.

Armed with this knowledge you’ll be better able to understand how the credit card application process works and better able to get a credit card approval.

Maureen