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 Headlines and Articles

    ChrisB

    Self Employment: What you arenít Thinking About

    Is the thought of self employment running through your mind? Are you ready to leave the corporate world in the past and branch out on your own? If you find yourself leaning in this direction, it is imperative that you... read more
    ChrisB September 18th, 2014, 08:14 AM
    ChrisB

    Easy Ways to Save on Tech Devices

    Are you in the market for a smartphone or smartwatch? How about a tablet? Regardless of the tech device you are shopping for, you know one thing to be true: you are not always going to find something that... read more
    ChrisB September 17th, 2014, 09:23 AM
    ChrisB

    3 End of Year Tax Tips

    With the end of 2014 closing in like a freight train, there is no better time than now to start planning for next year.

    While your final tax returns may not be due until April 2015, the sooner you get organized... read more
    ChrisB September 15th, 2014, 09:48 AM
    ChrisB

    Home Equity Loan Benefits

    With a home equity loan, you are able to borrow against the value of your property to obtain cash. Here are some of the most common reasons for taking out this type of loan:


    • Remodel or home renovation
    ... read more
    ChrisB September 11th, 2014, 09:14 AM
    ChrisB

    3 Simple Steps to Boost your Savings Account

    When you look at your savings account what do you see? While some people are excited at the number that stares back at them, many are wishing they had more money.

    Rather than hope for a miracle, there are... read more
    ChrisB September 10th, 2014, 09:14 AM
    ChrisB

    Stop Ignoring Other Car Insurance Companies

    You know the drill: you head to your mailbox and find another letter from another car insurance agent. They want you to contact them at your earliest convenience for a free, no obligation quote.... read more
    ChrisB September 9th, 2014, 09:34 AM
    ChrisB

    Self-employment with Little Capital is Possible

    If the idea of becoming a self-employed professional is rolling around in your head, you will soon begin to ask questions regarding the financial impact this change will have on your life.

    As scary as it may be to take... read more
    ChrisB September 5th, 2014, 09:13 AM
  • Recent Article Comments

    Wanderer

    Self Employment: What you arenít Thinking About

    As a follow on this, being able to remain motivated and not side track since no one is looking over... Go to last post

    Wanderer September 19th, 2014 08:39 AM

 

 

 

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


Copyright © 2014 Finance Globe. All rights reserved.