This is Why Obtaining a Credit Card Might Be Difficult For You
You have to go through the laid down procedures in other to obtain a credit card. The credit card issuer will examine your application information together with your credit history to know whether you qualify for the credit card. Some credit card issuers allow you to check online to see whether you’re pre-qualified. This will save you lots of credit card applications as you will have an idea of the Credit card you’re eligible to receive.
The reason for the difficulty in obtaining a Credit Card
While certain qualification requirements can vary from one credit card issuer to the next, and even among credit cards from the same credit card issuer, there are few features that make it very difficult to obtain a credit card regardless of the card you apply for. You will be very unlucky if any of these are true about you. you could have a more difficult time obtaining approval for a credit card.
You’re below 21years of age.
In the early 2000s, it was very easy for college students and other young adults to get credit cards. The government made a decision that it was too easy and therefore implemented legislation mandating credit card issuers to verify the income of applicants under age 21. So if you’re below this age do ensure that you have a sustainable income before you apply for a credit card.
You’ve never had credit before
It is necessary for you to have had credit to be approved for a credit card, but a discount approval means you can’t get a credit card. Most times, the very first credit card is often the most difficult to obtain because you have to locate a credit card issuer and a credit card that fits people without a credit history.
You have a short credit history
It won’t be easy to get a credit card after you’ve been approved for the first one. Until you’ve had many months of strong credit history that is, making payments on time and managing your credit card balance. Some other credit card issuers might still be very careful towards approving you for a credit card.
You’ve recently filed bankruptcy.
Not so many credit card issuers will be ready to take a risk on an applicant who is has been bankrupt previously. a few credit card issuers won’t accept you until the bankruptcy has been taken off your credit report completely. It’s advisable for you to at least wait a year after your bankruptcy discharge before embarking on another application.
You have a record of late payments especially recent ones
If your late payment for a credit card is up to 30 or more days, you’re likely to have a very difficult time obtaining approval for a credit card. Late payments show that you’re a risky lender. After you’ve made many months of quick payments, the late payment has less impact on your credit rating and you’ll have a smooth time getting approval.
Your credit card is considered illegal once you are past due on your monthly payments. Note that just one recent late payment can make it very difficult to get a credit card, it’s painful to know that having multiple late payments and other unlawful acts can also make it very difficult. Charge-offs, collection, foreclosure, repossession, and lawsuit judgments all will destroy your credit history and make credit card issuers not to show complete trust towards approving you for a credit card.
When you have high balances on credit cards and loans. High balances mean high monthly payments and a risk of not meeting up on new credit card balances. Having huge debt will make it hard to get a credit card, even though you seek for a credit card to help reduce some of your debt burdens
There is a regulation that mandates credit card issuers, before approving your application, ensure you have enough income to repay your credit card balance. A lack of a job or insufficient fund will lead to a difficult time getting approved for credit. the law does not just require you to be able to afford your credit card, but also because the credit card issuers need to be assured of the payments of balances you’re owning.
Fraud on your credit report.
A fraud alert can protect you by preventing identity theft. But this is achieved by making credit card issuers to take additional steps to verify your identity before approving your applications. You might realize find that a few online credit card applications cannot be processed due to the card issuer requires extra information that will be given by you to confirm that you’re the applicant of the credit card.
Lots of recent credit card applications can show that you’re in financial insufficiency and so you’re in need of a credit card to help you out. It can actually show that acquiring more credit than you can grip. When u apply for a lot of credit cards in a little period of time, you might realize your applications are not being granted. Rather than applying for so many credit cards, it would be advice able to hold on for a few months before applying again.
You opened a new credit card of recent. In the shot, just one recently opened account can make it difficult to get approval, depending on the credit card. Many credit card issuers want to ensure you can handle your new commitment very well before you can be approved for another credit card. Your ability to hold on for a few months between credit card applications can go a long way in improving your chances of getting approved.
Ways of obtaining a Credit Card, Even When It’s difficult
Probably you’re having difficulty in obtaining a credit card, there are things you embark upon. First, hold on and allow the credit card issuer to give you information on the reason for your request not being granted. They’re supposed to send a letter to you narrating the reasons for their decision and give you access to credit report without you paying for it. Make a thorough check on your credit report to ensure the information in it is correct. then make a correction of any sort of errors with the credit divisions.
Make an effort to obtaining a secured credit card
When credit card issuers denied you of your application, it’s for the reason that you’re seen as a risky lender. A secured credit card shifts the risk because you have to pay a security deposit against the credit limit. You’re will then likely be approved by the card issuer because they can use the security deposit if you eventually fall short of payment.
The moment you obtain one or two secured credit card, maximize the chance to make a positive change to your credit history. Each month, make quick payments and manage your credit card balance.
After so many months of quick payments, your credit card issuer may change your card to an unsecured one. if not, you may have built up a very strong credit history to be eligible.