Home Members Tools Credit Cards
   

  • Credit Card Approval Requires More Than Good Credit

    Even a great credit score isnít enough to guarantee your credit card application will be approved. Itís true, you can be denied a credit card even if you have excellent credit. Thatís because your credit score isnít the only factor credit card issuers consider when they decide whether to extend credit to you.

    Your Income/Ability to Repay

    Up until last year, you could get a credit card even without having your own income as long as your household income was high enough to meet the credit card issuerís requirements. Now, you must have your own personal income to get a credit card. Unfortunately, this places credit cards out of reach for many young adults whose parents pay their expenses and parents who stay at home rather than work outside the home.

    When you complete a credit card application, you might notice that it asks for your monthly rent or mortgage payment. Creditors often compare this number to your income to judge whether you have enough money leftover to repay a credit card balance. You may get turned down if your mortgage/rent limits your ability to repay.

    Number of Other Credit Cards

    There is such a thing as having too many credit cards. Unfortunately, we donít know the magic number that credit card issuers consider to be ďtoo manyĒ and itís likely that each of the issuers have their own criteria. Being denied for a credit card because you have too many is probably a good thing. Another credit card might cause debt problems or allow you to ignore the problems you already have.

    Your Age

    Credit card issuers are prohibited from discriminating against applicants because of their age, but you do need to be old enough to sign a contract, which is age 18 in most states. If youíre under age 18, you probably wonít be able to get a credit card in your name alone. However, you can be an authorized user or joint account holder on someone elseís credit card.

    Amount of Debt

    Too much debt can lead to a denied credit card application, even if the debt isnít affecting your credit score. A large amount of debt, especially high credit card balances, puts you at risk of defaulting on a new credit card balance. Many credit card issuers arenít willing to take the risk.

    What Happens If Youíre Denied

    Credit card issuers are required to send a written notice telling you why your credit card application was denied, even if your credit was not a factor in the decision. If your credit score was a factor in the decision to deny your application, then youíll get a free copy of the credit score that was used. You also have the right to a free credit report if something in your report was the reason you were denied. This free ďadverse actionĒ credit report wonít be sent automatically. Instead, youíll have to order it directly from the credit bureau that provided the report to the credit card issuer.

    Sources: FederalReserve.gov, FTC.gov
  • Disclaimer

    Information in these articles is brought to you by Finance Globe. Banks, issuers, credit card, and other companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles and is further subject to our terms and conditions.
  • Recent Activity

    kmurillo

    Need help finding a new credit card

    Thread Starter: kmurillo

    Looking to apply for a new credit card with a higher limit. I currently have credit one bank CC with a CL $1,000, they only increase $250 every 6...

    Last Post By: kmurillo January 26th, 2015, 08:01 PM Go to last post
  • Recent Forum Posts

    kmurillo

    Re: Need help finding a new credit card

    Thank you for the info! I just applied for the US Bank Cash Signature Card, so I'm hoping I get approved, they said to check back in 2 days for a decision.

    kmurillo January 26th, 2015, 08:01 PM Go to last post
    rver

    Re: Credit card companies garnishing wages?

    can't the employer cant in trouble for not complying with the court order

    rver January 23rd, 2015, 04:51 AM Go to last post
    SAR1954

    Re: Need help finding a new credit card

    (Just solely based on my own experiences) Your scores are great by with the Ch 13 still reporting, I think US Bank and Discover may do an automatic decline.

    SAR1954 January 22nd, 2015, 01:45 PM Go to last post
  • Recent Headlines and Articles

    ChrisB

    New Car Financing: How to Secure the Best Deal

    Buying a new car can be fun in many ways. At the same time, this can bring a lot of stress into your life, especially from a financial point of view.

    Unless you are in position to purchase... read more
    ChrisB January 26th, 2015, 07:45 AM
    ChrisB

    3 Better Ways to Negotiate with a Contractor

    When it comes time to negotiate with a contractor, many people make one of two mistakes:

    • They donít negotiate at all, but instead accept the price they are offered.
    • They
    ... read more
    ChrisB January 23rd, 2015, 10:10 AM
    ChrisB

    Short Term Disability: Do you have this Coverage?

    There is nothing worse than the thought of becoming disabled. This can be even more frustrating once you realize you will not be able to work for a particular period of time.

    With short term disability insurance, your situation... read more
    ChrisB January 22nd, 2015, 09:39 AM
    ChrisB

    Best Ways to Fund your Emergency Account

    Do you have an emergency account? Are you keeping this money safe, hoping you never have to use it, but realizing the time could come at some point?

    If your emergency account is short on funds,... read more
    ChrisB January 21st, 2015, 10:20 AM
    ChrisB

    These Hidden Expenses are Killing your Budget

    Creating a budget is only half the battle. The other half is staying on track, day in and day out, no matter what comes your way.

    You may not realize it right now, but there could be hidden expenses... read more
    ChrisB January 20th, 2015, 10:23 AM
    ChrisB

    Start Saving Now for Summer Vacation

    For many people, there is nothing more exciting than taking a summer vacation. They look forward to this all year long, knowing that it is sure to be one of the best times of their life.... read more
    ChrisB January 19th, 2015, 10:34 AM
    ChrisB

    How to Find a Mortgage Broker you can Trust

    There is a lot that goes into buying a home. For many, this includes securing a mortgage. While this sounds simple enough, being that there are hundreds of lenders to choose from, there are many details to... read more
    ChrisB January 15th, 2015, 09:56 AM
    ChrisB

    Considering a Home Equity Loan? Review these Details First

    Do you have equity in your home? Would you like to get your hands on some of this money for a home improvement project or another expense? If you answered yes to both questions, a... read more
    ChrisB January 14th, 2015, 09:57 AM

 

 

 

Credit Cards | Finance Social Network | Credit Card Reviews | Markets
About Us | FG on the Web | Sitemap | Privacy | Terms | Contact


Copyright © 2015 Finance Globe. All rights reserved.