With so many offers for credit cards coming at you from all directions, sometimes it may be hard to say no. However, applying for credit is not like looking for a job. When seeking employment most applicants will send out several dozen resumes, playing the odds of one finding its way into the employment stack. With credit card applications, the more you apply for credit cards, the more it can reduce your chances of success.
Every time you submit a credit card application, one of the three credit reporting agencies is contacted about your credit history. Since it now done almost exclusively by computer, the agencies computers have no way of finding out if the application was approved or laughed at and the record of the application going through sticks to your record.
As each application hits the agencies, additional check marks are placed on your file and, after several have been received, the agencies’ computers may indicate to potential lenders that you already have a slew of cards.
If the card company conducts a personal review of your application, that is has a human look it over, they may believe that you already have several cards and your debt to income ratio may be more than they are willing to take a chance on. In the unlikely event you are able to contact one of these lenders to explain you never were issued any cards they will presume that since no one else would approve you for a card, there is no reason they should.
Before you look to apply for credit cards, be as choosey in the companies to which you apply as they are about whom they approve. Look for the ones that offer the best opportunity for approval, realizing that a denial will not show on the report, only the fact that you made attempts to apply for credit cards. Before filling out oodles of applications, you should first:
• Get a copy of your credit report
• Review any negatives that you can prove don’t belong there
• Compare credit card user rules
• Compare interest rates
• Apply to no more than two in a 90-day span
Regardless of your credit history when you apply for credit cards and are declined do not take it personal. In today’s credit market there is rarely a person going through the applications choosing who is blessed with their product and who is turned down. Most applications, especially those submitted online, are reviewed by a computer, comparing the qualifications you listed on the applications to the credit report they receive from the reporting agencies.
The computerized comparison of your past history is what the computer uses to issue a credit card or a rejection letter. If the application is denied, keep paying your bills on time and try again later.
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