It’s fatal to leverage of borrowed money with a bad credit considering the number of credit card companies that use your credit to determine potential business deal and to set your rate of interest. Borrowers with a troubled credit history often received rejections or disapproved credit card applications after signing up for the latest promotional cards. Applying for a credit card seems to be the best option for incentives, but generally the least approved option. As you navigate credit card deals and evaluate the best option for personal consumption, observe the following crucial factors in signing up for a new credit card.
A bad credit discourages most credit card issuers considering the fact of highly geared corporations that borrowed money from investors and issued loans out to you. Retail debtors with a bad credit history often adopt new lines of credit, pegged personal loans to the applied credit cards, and default of borrowing after a few timely payments. Alternatively, upon getting disapproved for a new credit card, you may opt to visit a credit union for financial assistance or simply do credit repair by evaluating the best cleanup choice, here are the most critical factors before signing up for a new debit or credit card.
1. You can apply for a credit card.
Even if you’re a fresh graduate or starting off with a zero or 0 credit score, under normal circumstances, you do have a logical assumption that a credit card company immediately disapprove your credit card signup, the reality is that anyone can apply for a new credit card without the need of an existing personal credit score. As for how the credit card company works, a quick search online displays a plethora of prominent card issuers, all you need to do is to click on the sign-up button and fill in the necessary details of your interested credit card company.
For instance, chancing upon consumer’s favorite hsbc or citibank credit card, you may proceed to search for the best cash back credit cards, high quality deals like miles, grocery spending at certain outlet, an additional secured card, rewards, or simply without an annual fee (avoiding waiver). Don’t forget about selecting either of the options: mastercard, visa card, or other globally accepted payment functions (JCB, Diners, Mastro, American Express).
Apply-for-me: In the process of signing up a new credit card, you’ll avoid the hassle of holding cash & cash equivalents, fear of getting robbed by foreigners during travel seasons, exercise financial prudence within the issued credit limits, automatically enrolled into an analytical card application, or lack the cashback option for a bulk purchase. Similarly, a lot of merchants created funky ideas to entice you such as prepaid and paypal credit card.
2. Credit card bases on your personal income level, not about credit score.
During the application process with a financial institution, being in a physical location or an online credit card applicant, mastercard debit card or others, you’re directly involved in the entire process. A mistake at your end or the backend office may delay the approval timing, worst case getting rejected for the wrong reasons – appealing to the banking compliance & chargeback department takes a great deal of time. These factors are what ultimately decide whether you are eligible for a platinum card, a black credit card, a gold card, or any promotional offer.
A credit card check is the first step of work for the issuer to determine whether you have the financial capacity to repay them quickly. It’s reasonable to call your nearest credit card company for 0 balance transfer or use the internet to find for a credit card comparison website, identifying which credit card to apply for – discover, chase, hsbc, citi, bank of america, wells fargo, american express to name a few.
Income-level: If you’re working in a professional role, be it in the finance industry or retail line, chances of getting approved for a credit cc application is high. Maverns  demonstrated in a statistical table titled “credit card usa” that most consumers with an operating income of 2 years or 24 months do get approved by banks while “credit cards uk” statistics depicted lower approval rates. Nevertheless, a credit card help center is always available to answer your enquiries 24/7 daily.
3. Your approval rate depends on your credit standing.
There’s no denial on the part of good or bad credit rating. Financial institutions like banks often measure your financial conditions using an indicative credit score, payment history in the past, a credit card checker, or requesting assistance from banks that issued to you their top credit cards. While it is true that a new borrower (with little to no credit history) experiences setbacks in applying for different types of credit cards, it is not false that local creditors do have a certain faith in them as opposed to delinquent current accounts.
A poor credit report scorecard produces a bad impression to your creditors. As your financial reputation advances, performing a credit card transaction for a few months, you should avoid unsecured loans (cash advances or bank overdrafts) and continuously compare credit cards.
Here are some proven examples of local banks & agencies helping in an applicant’s submission:
- Bankruptcy credit cards – an individual undergoing bankruptcy filing can apply for a bankruptcy credit card for a temporary debt relief.
- Instant approval credit cards – gone are the days of waiting for card mailing services to deliver to your doorstep, under an hour, Citibank promises delivery of instant cards.
- ATM or online credit card submission: a global banking coverage enables consumers to apply for credit card offers at a click of a mouse & getting phoned in a couple of minutes for credit card verification.
- Free credit card: ever wonder why you needed to pay for an expensive annual fee but facing difficulties in getting waivers approved?
- Guaranteed credit card approval: sensitive topic that your friendly agent will assist you.
Procedure: So long as you fulfilled the creditor’s minimum requirement, such as personal income level and duration of employment, you can proceed to apply for a cc. When you’re in comparison of the best interest rates, do not sign up for a virtual credit card. Why? There’s a chance of falling into a case of identity theft. You’ll be exposed to professional fraudsters or getting your negative information out to the public for a fee.
Once you realized that you’re caught in a fake credit card benefit, immediately contact your nearest credit bureau or lodged a police report. Certainly, believing that there is a credit card finder online is proven to be a myth. Cancel any applied services on the internet due to inadequate credit card insurance.
4. Best credit cards are only available to good credit scorers.
What is your personal credit score? If your score falls between the range of 600 to 750, chances of getting approved is almost guaranteed while attaining the best credit cards. It’s imperative to place your interest in reputable credit card companies like discover, chase, citi, hsbc, morgan stanley or American express while looking out for merchants like shell, disney, master, visa, paypal, gas or any store credit card.
Emphasis on 0 APR. Since local financial institutions went through many fraud problems, it’s recommended for you to understand the common procedures deployed by these agencies:
- Fair rating: credit cards for fair credit
- Poor rating: credit cards for poor credit
- Negative rating: credit cards with bad credit
The above procedures are specifically for credit card info. Do not attempt to apply for credit card with bad credit! Chances of rejection is high. Perform a personal credit repair cleanup on your credit report before re-applying for your interested cards – a cardholder has to prove his trust in creditworthiness.
Comparison: The difference between the best vs. lowest credit cards is too wide. Zero interests are usually offered if you’ve an excellent credit score. Check out mobile visa card app for your financial status – open a dispute case if you found any discrepancy or error.
5. Doing nothing is a card strategy.
Many consumers misunderstood the need for being patient. Since there is no guaranteed credit card approval, how do you apply for a credit card online? Answer is simple, doing nothing at all. For balance transfer credit cards, it’s necessary to be prudent in the entire cr process, the wait for approval cannot be forever. Chances are, the corresponding bank shall reach out to you within the slated deadlines.
How to get a credit card? There’s no law for credit card companies to not offer their comprehensive suite of banking products to you. In fact, after a credit card verification process, you might be eligible for instant approval for credit cards (within a day or two). Do note that anyone can apply for an unsecured credit card but only those that fulfill “Emphasis on 0apr” as the requirement above.
Patience is a virtue. Of the same statute with a credit card company, the officer can do nothing as well and just keep pending the application process. The daily quota might just pull your application through (grey area though). It’s because the bank’s cc card department has to obey the laws stated by a credit bureau in lowering the rate of debts being sloshed out freely.
6. Do not apply for one credit card account.
If you’re about to do some credit card reviews, remember to set up multiple current accounts, apply for mastercard, apply for visa card, discover credit card, chase credit card, or other relevant crediting functions. Do not apply for one credit card account!
One myth is on creating many cr accounts. If you intended to open just an account, to mitigate risk of credit check, your creditor might misunderstand that you have several other “bad” current & savings accounts with them or competitors. Otherwise, you’re intending to do a credit card fraud!
Legal actions such as blacklisting of your personal information, increasing your interest rate, freezing of individual account, or calling up the legal department, shall be implemented against you. Yes, creditors do have the right in reviewing your current credit card accounts until they’ve a satisfied answer, not to forget undergoing painstaking measures for debt clearance with a professional credit bureau.
Do not believe the general sentiment of having various current accounts including a balance transfer. It’s wise to set up multiple accounts to serve your needs; grocery purchase, auto loan payment, service mortgage housing, utility & gas bill, and personal consumption. These accounts help in segregating expenses while month-end budgeting helps in 0 apr credit cards.
7. Are credit card companies trusting?
To learn the hard truth about credit card companies, these agencies done an excellent “job” in marketing out financial products to vulnerable customers who don’t have a clue on the mechanisms of the functions; rewards credit cards, visa platinum credit card, credit card fees, business credit cards, or even calculation – risking borrower’s credit score report here!
Rudimentary knowledge of is dangerous. You’ll not have relevant experiences in dealing with an online credit card and not knowing what to look out for during online credit card reviews. The onus lies on the hands of your credit card company, beautifying cash back cards while misleading you to the wrong definition of what is a credit card.
Avoid lofty sales pitches, observe the following guidelines in maintaining a cool composure:
- Reputation of credit card company – 1st step is to learn about the card issuer, unknown brand names must be avoided at all cost.
- Citing of local governments – next up, forget about those who mentioned closely-knitted relationships with local credit bureaus.
- Promise anything – whoever who promises ought to be reported.
- Attempted cheating – shady card companies do exist, they often preached instant credit card approvals!
- Brutal marketing efforts – credit card officers don’t have the right to help you apply for ten credit cards when you requested for one card only.
Above mentioned guidelines have to be taken into consideration. It’s not necessary to observe all of them but nice to receive quality financial education. On a last note, avoid third-party merchant apps or prepaid credit cards if you are unsure of their reputation. Prestigious credit cards like paypal or forex can be considered due to strong financial standing – but be wary of the annual fee payment.
8. Credit card is not a one-off transaction.
There’s no difference in ownership, owner of a house, landlord of a real estate, owner of an auto, owner of personal asset, or being a cardholder. Ownership, holding legal control & rights over an item, comes with responsibility, thereby requiring certain sacrifices to be made financially. A good credit history does reduce your cost of ownership, debt restructuring plan, credit card protection, or better financing deals from local lenders.
Do not assume that every creditor treats you equal. One point you’ve to be sure is on the credit card benefits, not using the proper treatments might lead to understating credit utility ratio – a big mistake in your debt consumption. It’s time to reactivate your financial muscles by going shopping for the right credit card fit. Recognized the need for having a credit card, investing time & efforts in determining the risk-reward apr benefit, and finally contacting the bank or local credit card company for advice.
An organic method of hunting suitable cards is by calling up friends. In the working world, most consumers possessed at least 2 credit cards in their wallet, maintaining a lean cash structure. As time goes on, you’ve some ideas on what cards to apply for in order to maximize your credit utility. Time taken to accumulate knowledge, exercise prudence concept, and patience in approval timing, is going to be a long ride.
9. Never overleverage on a credit account.
Borrowed money is not the same as personal cash. When a bank imposed credit card charges, you might find it overwhelming to repay the interests, what more principle repayments. In a security card, charge card or debit card, there is an asset like security deposit or collateral pledged as a guaranteed protection. For unsecured credit cards, the bank incurs the risk of lending out in exchange for higher interest rates, leading to higher profit margins – that’s the rationale behind credit cards!
If you don’t have the financial credence, no bank or creditor will be willing to loan out sloshing money in their credit accounts. Certainly, there’s a way in improving your credit score to boost financial credibility but not for long regressing back to the mean. It means that your creditworthiness has yet to secure a bank’s trust in lending you borrowed cash reserves.
One missed payment for your credit card debt shall destroy a lifetime of reputation. Your bad habits in missing or late payments don’t help in stimulating incentives from creative marketing agencies. Never go beyond the credit limit coverage as well as missing out payment deadlines due to insufficient salary or living beyond your means.
Good to know tips & tricks for credit cards in 2018
No one has a “perfect” credit card. Obviously, you’ve to prove your financial competence before credit card companies entrusted their cash reserves to you for a fee. Employing strategic debt repayments is what the agencies wanted to learn from you albeit not a mandatory criterion. Here are some of the needful tips in being a good cardholder:
- Choose the right credit card
- Terminate unused credit account
- Furnish proper credit card info
- Check out credit card rates
- Communicate with credit bureau
- Beware of an international credit card
- Start out with first credit card
- Download a credit card app
- Apply for 0 balance transfer
- Never draw cash from credit card
- Don’t do a credit card transfer (unless balance-transfer)
- Consolidate unpaid debts into 1 account (lower interests)
All in all, many of you don’t have the ample time to invest in searching for good credit card deals. You can either call up your friend, a relative, or someone who used a credit card. It’s imperative to observe the above mentioned topics in promptly managing unpaid debts, consolidation of credit card loans, and terminating of existing unused unsecured lines. The path to being debt free is predictable after adopting these good practices in life.
Quote of the Day: “Financial prosperity begins with investable liabilities – KIG Hall [2013-2018]”
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This article was originally published on February 13, 2014. It has since been updated.