What to do BEFORE your Credit Card Application is Denied.

“I’m about to apply for a credit card, what should I do first?”

Understanding the Credit Card Process

There are a lot of choices out there, which one should you choose and how do you manage the process?

As posted in the previous post on Best Credit Cards to rebuild Credit, What to do if you’ve been denied by a Credit Card Company, about 15% of all credit card applications are denied or otherwise rejected. What this also means is that you have to make sure you know what to do before and after you apply for a credit card or any type of loan. Going into a credit card application you should follow these four key steps to improve your chances of being approved.

  1. Have a steady and stable form of income. This may seem like common sense, ‘how are you gonna pay your monthly bill if you don’t have a job?’ but many people don’t have a ‘stable’ recorded income source. Examples of the most accepted sources are full-time and part-time employment, social security or disability, annuity income, contract work, and even some dividends from investments are acceptable.
  2. Know your personal details.No matter if you are going into an office or going online to fill out a credit application, have your details readily available and up-to-date. Most online applications will kick you off if you are idle too long; this is to prevent your information from falling into the wrong hands. They take your credit and personal information seriously — so should you.When you are applying, have the following close by or with you: your drivers license or ID, latest pay stub (or comparable document for your ‘stable’ income source), last bank statement if you have one, at least 3 references, and the traditional info you probably have memorized (e.g. mother’s maiden name, social security number, last two addresses, aliases, etc.).
  3. Know your debts and available assets. For some credit cards, but more likely in the case of secured loans, you may increase your chances of receiving approval if you include assets on the application. Many applications will also ask you for your current debts or outstanding credit card balances. Be honest, one of the best ways to get rejected is to put fraudulent information on the application. The agencies share consumer information with each other and credit reporting companies, so you can’t fool them.
  4. The more the merrier. If you have a spouse, or a someone willing to co-sign with you, have them with you. Co-signing will improve the chances of a credit card application approval because it means that their are more individuals supporting the request and who are willing to repay any debt the credit card agency may offer. In addition, having other individuals on the application may in fact increase the initial credit limit!

There is no one or any method that can ensure you get that approval, but there are best practices you can follow to help improve the chances of success. Not to mention that there are a number of lenders and credit card agencies willing to work with you to reach your financial goals. If you are struggling because of bad credit, no credit, or past credit issues visit our Credit Cards for people with Bad Credit page for options that may meet your needs — right where you are now.

About Kevin Williams

Kevin works as a independent consultant, helping people improve their financial situations. The author has a BS and Masters along with years of experience with credit cards, techniques for improving individual credit and life.

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