Credit Card Application

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

Joel Owens asked:




Do you remember to do your check your credit card application status? A lot of people don’t and it could cost them a lot of valuable time.

The economy is in waddle now. Everyone knows this. The when the housing loan bubble burst, everything was affected. The damage in the country’s economy is affecting everyone else and all other industries. But the industry that was directly hit was the banking industry. The credit card industry is another sector that was hit badly. Now more than ever, people are relying on their credit cards for their daily needs. For a lot of families and individuals, their credit cards are the only safety net that cushioned their fall from total bankruptcy and financial ruin. But more and more issues are being raised on the credit card sector. There is the new credit card act signed by President Obama that is demanding big changes in the industry. Then there is also the mounting credit card bad debt that is threatening to topple over and damage the economy anew. Creditors are becoming more careful in giving out credit card accounts. People find it harder now to get credit cards. A lot of people fail to get their credit cards. If they simply had been more vigilant and do some credit card application status checks, then they might have actually gotten their card faster.

Since so many card companies and banks are now in a frenzy to protect their assets, re-access their situations, do some major re-organizations, the process of getting cards can be slowed down. Also, the newest rules regarding card practices have been hampering a lot of their efforts. Imagine all of these changes must be putting companies into a state of chaos. When you also take into account that all these are happening in the midst of the worst financial crisis that the economy has ever seen in a long, long time, then you would understand just what is happening to a lot of these companies.

If you have never stopped to ask yourself “what is the current condition of my Credit Card Application?” then you probably don’t need it that badly. Most people would ask this question to themselves but don’t bother to do anything about it simply because they think things will just happen for them. But with all that time spent without knowing if your card has been denied or is still pending, a lot of things might already have happened. Imagine waiting for your card without any idea if its’ coming along or not. There’s something you can do about it. Simply inquire about your credit card application status. The best part is, most banks have this service online so you won’t have to visit the bank at all.

As a concerned consumer you should always double check everything about your financial condition. This is the only prudent thing to do especially in our bad economic climate.

Brenda

Peter Burke asked:




Study reveals that nearly 9 million people in America have problems of bad credit. This forms about 3% of the population, (over 6% of the adult population!) of the United States. So the knowing the credit history of a person is gaining ground and necessity for creditors.

The fact remains if your FICO rate is below 620, people won’t lend you any credit. This FICO score being low has various reasons like bankruptcy, excessive debts, inability of rendering payment of bills at proper time, among others.

However, there is a ray of hope! Your credit score can be improved. This can be done by maintaining your potential for credit,however small it may be and making it clear to creditors that you’re capable of paying your debts in time, without having to having to resort to more credit. To help you improve your credit there 5 basic steps below.

1. Get yourself a copy of the your credit report. Then utilize the various advantages of the credit report of the government (which is free) from every Bureau of the National Consumer Credit – Equifax and Trans-Union. This will get you to the start of the process. It will give you a clear picture of your present rating.

2. File an application for a credit line, which may be a secured or unsecured credit card.

3. On getting the card, do not make blind purchases. Restrict the purchases to 70 percent of limit imposed on the credit card. i.e. if the limit of the credit card is $500, use it to the extent of $350 only.

4. Then, make sure you pay pay bills at the proper time, as this alone takes up 35% of the FICO score of yours. So this is a good base for creditors to judge your creditworthiness.

5. So what about Prepaid cards?

You can also use a credit card that is prepaid. This often a solution that many borrowers are unaware of. This, is perhaps the simplest and most effective method for longer term improvement if you have debt discipline problems. This effectively means you will mean using a credit card to rebuild credit – a ‘win-win’ situation. Use a prepaid credit card that is reported to a Credit Bureau. Only a few of the credit cards regularly report to a credit bureau. So select one that does so, on a regular basis.

One thing to note about prepaid cards is that you must Keep a track of fees. The prepaid card companies often levy fees. Make a prior comparison with many companies in order to secure a credit card where the lowest fee is charged. Bear in mind that some fees need to be paid for credit cards that get reported to the credit bureau, which can be up to an annual fee of$100 – But remember the purpose of this card is to repair credit!



Check the benefits

Some prepaid cards are available with certain benefits, but not all of them. Some give you points which can be used for free call time and other activities.



Preventing abuse of the credit card

Prepaid cards have the distinct benefit that you can never cross the limit, so it enables you to avoid interest and penalties. The implication is that if a report to the credit bureau is made, it is literally impossible to get a FICO score which is lower than your current score with such a card. So you can get credit cards to rebuild credit. It only gets better!

Jim

Trouble in Texas asked:


My husband got a credit card during our marriage and we always paid on time but due to job layoff and illness we fell behind.We are both working now but make only enogh money to pay for the bare necessities.So now he’s had an arbitration award made against him. In the state of Texas (community property and family code laws) will they come after me since I did not sign the application? Should I get a separate bank account in my name only to protect my wages? Can he direct deposit his paycheck into his sister’s account or will the creditors find out from his employer his sister’s bank account info and freeze his money and his sister’s too?Direct deposit is mandatory at his company. Please help we are not deadbeats. We’re just having a hard time right now.

SIDNEY

Zachary asked:


I filed bankruptcy in April of 2006 and it was discharged that August– My score has gone from the low 400s to the high 500s, and will flirt with the low 600s. I’ve been trying to reestablish my credit with about 5 credit card, but they all have LOW limits, which is hurting me (although having the multiple cards open is what has increased my score). I can’t get my score any higher because my limits are so low, which is showing that creditors aren’t willing to trust me. I have paid EVERY account I have on-time for more than a year and half (although for some reason my credit report still says I’m deliquent, and I can’t figure out why it says that). I need to get a card with a decent limit so that I can close these accounts that charge $150-175 for annual fees, not to mention show that I can be trusted with credit. Where or WHO can I go to to issue me a card with a decent limit– OR how long will it take before regular creditors will finally look at my applications & approve it?

FEDERICO