Credit Card Application - Getting Approved

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Credit Card Application - Getting Approved

After getting many credit card offers, you may be considering taking advantage of one or two of them. As you fill out the credit card application, it is important to remember that a rejection can do a lot of damage to your credit record and raise obstacles to future applications for credit. You should take extra care in providing the information required in the credit card application.

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. In the first place, your credit folder with all your vital information is 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 a question is not relevant to your situation, place "not applicable" or N/A on the space. This shows you have read and responded to the question. Write carefully and clearly, especially 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. You can always explain the circumstances to the lender later and in person, if they ask. If they don't ask, there is no need to volunteer 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.