Credit Card Applications: How To Get Approved
Every now and then you may take a look through the credit cards in your wallet and think about the option of applying for a new card with a better offer. You may have received offers in the post or browsing offers online. Before you jump in and start applying you need to think about maximising your odds of approval and avoiding rejections which may damage your credit score. You will have to complete the credit card application in such a way that your chances of approval will be higher and you can get favorable interest rates. Many people are denied credit because they are not careful in providing personal details on the credit card application form. Here are some things you can do. Avoid applying for multiple credit cards simultaneously Your credit score will suffer a lot if multiple lenders request for your credit report all at once. This could lead to at least one credit card application getting denied, and this will lower your credit score even more. Prepare your documentation: Credit card applications ask for a lot of information. You should create a single credit folder which will contain all your vital information. Having all these in one place will allow you to respond to questions completely and consistently. Since this folder is loaded with sensitive information on your identity and other details, make sure to keep it in a safe place. Fill out the credit card application at home: Credit card offers come with all sorts of enticements for you to send back the application immediately. Resist the credit card offers of instant credit or instant savings. One of the main reasons is that your files with your vital information are at home. More than that, it is crucial not to be rushed or feel intimidated into completing the credit card application on the spot. Doing the job at home allows you to fill it out with care. Answer every question: Do not leave any blanks on the credit card application, otherwise the card issuer may interpret it as an attempt to hide something and categorize you as high risk. If the application form includes questions that are not relevant to your situation then don't leave the space black but insert N/A or 'not applicable' in the space. This shows you have read and responded to the question. Use clear print (not joined up) and be extra careful of numbers. If you have gone through a bankruptcy, there is one question you should leave blank. This is the question that inquires, "Have you ever filed bankruptcy?" Do not put "no" for that would be a lie; but do not say "yes" or tick the box. Answering the question immediately might trigger an automatic rejection by the card company's computerized processing system. It is always possible to explain the reasons to the issuers later in person, if they ask. If the form does not ask then there is no need to provide the information. Look out for red flags: Some items cause the lender to classify the applicant as a credit risk, such as: * Tax liens (settled, released, not released) * Previous bankruptcy(ies) * High ratio of debt to income * Too many revolving credit cards but only modest income * Outstanding collection accounts * Credit counseling reports * Mailing address is a post office box * Frequent employment changes * Lack of verifiable income, especially if self-employed * Employer's telephone numbers cannot be verified * Your telephone number cannot be verified in directory assistance * No savings or checking account Be aware of these items and make sure your credit card application addresses such issues.
