Three Rules For Success
1/. First and foremost you should always obtain a copy of your credit report before making an online credit card application. Request a copy of your report from at least one of the three main credit bureaus, Equifax, TransUnion and Experian. These agencies may all hold differing information about you, and you may decide to check out a report from each one of them. This is an extremely important part of the online credit card application process.
Your credit report will help you to build a good impression of your financial circumstances from a lender’s point of view. Keep in mind that when you make an online credit card application, your credit score will affect the type of card you are likely to qualify for. For example, if you have a perfect credit history and have always made payments on time, you will notice when you make your online credit card application that you are eligible for a much wider choice of card than if your credit history is punctuated by missed or late payments and defaults.
2/. Peruse your credit report thoroughly taking a good look at all the information contained in it. – Firstly, check that all the information is correct. Are there any items still listed that you know have been paid off? Are there any balances that you think are incorrect? All these things can affect your online credit card application and if you find any discrepancies you should contact the relevant company and request that they inform the bureau concerned so that your information can be amended. It’s also advisable to contact the bureau yourself to ensure it has been done. Errors on your credit report can often prevent you from making a successful online credit card application and getting credit that you would otherwise qualify for.
Also, when you look closely at your report, check for any small items that you can easily pay off. Your credit report tells a potential lender how much credit you already have access to, so if you’ve any old credit cards which have been paid off or current accounts which you no longer use, close them now so they don’t add to your overall existing available credit. This is very important as, based on your income, a lender will usually estimate how much debt you can comfortably afford. It is important that you make your credit report appear as healthy as possible prior to making an online credit card application.
3/. Researching and comparing the hundreds of available cards from various sources is an important part of the online credit card application process. Once you have your credit in reasonable shape it’s time to choose a card which you are confident you will qualify for. If you are fortunate enough to have excellent credit history, (a score of 700-800) you will no doubt be accepted for almost any card you make an online credit card application for, while at the same time, qualifying for the lowest interest rates available. However, if you have average credit, (a score of 600-700) you may not get the card you choose, but are likely to be offered something close to that. Below a credit score of 600 you could be refused a credit card depending on what is gleaned from the information on your credit report. The company may not approve your online credit card application if it considers that you are not able to manage the repayments.
If your online credit card application is declined you’ll find a range of credit builder cards available from the leading issuing companies. These cards typically carry a lower credit limit and will often include monthly interest rates that are much higher than other cards.
So do your research methodically and don’t take a risk on rejection. Being refused credit of any kind can have a negative impact on your overall credit score. If your credit is in poor shape you may be as well to put your application on hold while you spend time repairing your credit rating. If you follow these three simple rules you’ll find the process quite straightforward, and spending a little time on research will help you to complete a successful online credit card application.
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