Credit Card Applications: How To Get Approved
Author: Richard Greenwood
Every now and then you may take a look through the credit cards in your wallet and think about the option of applying for a new card with a better offer. You may have received offers in the post or browsing offers online. Before you jump in and start applying you need to think about maximising your odds of approval and avoiding rejections which may damage your credit score. 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. One of the main reasons is that your files with your vital information are 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 the application form includes questions that are not relevant to your situation then don’t leave the space black but insert N/A or ‘not applicable’ in the space. This shows you have read and responded to the question. Use clear print (not joined up) and be extra careful of 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. It is always possible to explain the reasons to the issuers later in person, if they ask. If the form does not ask then there is no need to provide 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.
Article Source: http://www.articlesbase.com/finance-articles/credit-card-applications-how-to-get-approved-795679.html
About the Author
Richard Greenwood heads up the team at the Click 4 Group which includes the banking comparison website compareyourbank.com.au which compare bank accounts and other finance products such as credit cards.
How good does one’s credit need to be to qualify for a home loan with a decent percentage rate?
My fiance declared bankruptcy about 4 years ago, and I have had been enrolled in a credit counseling service to pay off personal debt (I will be finished paying it off this year). Both of our credit scores are slightly under 670. We want to start looking for a home in about a year, and will be able to put down about 20%, but we are concerned about getting approved for a mortgage. Anyone who can share any knowledge about this would be appreciated!
credit card math help?
With a credit card you are able to receive money, goods, or services in the present, in exchange for a promise to pay in the future.
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2: Minimum payments are a trap; they are often designed so that it takes months or years to pay off the balance.
True
False
3: The adjusted balance is a measure of the cost of credit, expressed as a yearly rate that must be disclosed before you become obligated on the account and on your account statements.
True
False
4: Federal law prohibits issuers from sending you a renewal or substitute card without your request.
True
False
5: Accurate negative information can generally stay on your credit report for seven years, with certain exceptions.
True
False
6: Realistic budgeting, credit counseling from a reputable organization, debt consolidation, or bankruptcy are all methods of dealing with debt.
True
False
7: Chapter 7, known as straight bankruptcy, involves liquidating all assets that are not exempt. (Exempt items would include items such as work-related tools and basic household furnishings.)
True
False
8: In exchange for an up-front fee, companies which guarantee that applicants will get the credit they want-usually a credit card or a personal loan – are always pre-approved by the FTC.
True
False
9: “Dead Man Walking” was an example of companies scamming citizens out of their social security benefits.
True
False
10: Credit and charge card fraud costs cardholders and issuers hundreds of millions of dollars each year.
True
False
credit card math help comsumer math?
1: With a credit card you are able to receive money, goods, or services in the present, in exchange for a promise to pay in the future.
True
False
2: Minimum payments are a trap; they are often designed so that it takes months or years to pay off the balance.
True
False
3: The adjusted balance is a measure of the cost of credit, expressed as a yearly rate that must be disclosed before you become obligated on the account and on your account statements.
True
False
4: Federal law prohibits issuers from sending you a renewal or substitute card without your request.
True
False
5: Accurate negative information can generally stay on your credit report for seven years, with certain exceptions.
True
False
6: Realistic budgeting, credit counseling from a reputable organization, debt consolidation, or bankruptcy are all methods of dealing with debt.
True
False
7: Chapter 7, known as straight bankruptcy, involves liquidating all assets that are not exempt. (Exempt items would include items such as work-related tools and basic household furnishings.)
True
False
8: In exchange for an up-front fee, companies which guarantee that applicants will get the credit they want-usually a credit card or a personal loan – are always pre-approved by the FTC.
True
False
9: “Dead Man Walking” was an example of companies scamming citizens out of their social security benefits.
True
False
10: Credit and charge card fraud costs cardholders and issuers hundreds of millions of dollars each year.
True
False
Bankruptcy, Chapter 7, Pennsylvania?
I got laid off back in February. At that time I had a considerable amount of credit card debt, now I’m up to over $63,000.00. I was able to make the minimum payments on all my credit cards when I was employed, but since then I have struggled. I cashed my entire 401k to pay my bills and use for my living expenses, now I have nothing. Not a dime saved up. I live off of $355.00 a week from unemployment. My lease was up on my car a month ago, and I decided to buy it from the dealership because it was the cheapest option for me, only $160 a month, but had to get my father to be the primary signer on it, if he wasn’t, no bank would of approved it because of my credit. I now have moved back in with my parents because living on my own put me further in debt then I already was. Now that the money I used for rent and living expenses is available, I figured I’d settle my debt and start paying it back. Unfortunately, most settlement companies have declined me, (this is after I exhausted credit counseling and trying to negotiate with the credit card companies myself) and the companies that say it’s possible inform me that my payment would be at least $800 a month, for over 3 years. This, I cannot do. My phone, 2 student loans, car, medical and auto insurance bill all value around $700 a month, leaving me able to afford at most another $700 a month, not including food and gas. I now realize that bankruptcy is my only option. My question is will my father be involved since he is the primary signer for my car, (though the title is just in my name for insurance purposes) or can I just continue to pay the monthly bill for that and my other expenses and he will be left out of it? (he also is a cosigner on one of my student loans). I keep reading stuff that in a chapter 7 some personal belongings are taken away from you, the thing is with me though, is that I don’t have anything, I mean, absolutely nothing, except clothes, a laptop that i purchased a half a year ago, my phone, and this car i just bought, though i’m the cosigner on the bank loan for it. What can be taken away from me? Thank you in advance for your help, it’s greatly appreciated. and any sites that can lead me in the right direction to start this off would be wonderful, thanks again.
First thing: Most mortgage companies will treat your credit counseling the same as if you’re in a Ch. 13 bankruptcy. They’ll want you to be done with it for 12 months before you can buy. So anything you can do to pay it off quickly will help cut down that timeframe.
You could be good candidates for FHA loans though, even now. But with a 20% downpayment, in a year, there’s absolutely no reason you shouldn’t qualify for the best conventional rates and programs available.
You will need to talk to a local bankruptcy attorney and have him or her look at the vehicle loan and title documents for a real answer to your vehicle questions. I am unclear about the vehicle arrangement: whether or not the lender has a security lien on the vehicle, and if so, how that could be the case if the primary borrower (your dad) is not an owner listed on the title. If your name is on the title but there is no recorded lien, the bankruptcy court may regard it as a free and clear asset belonging solely to you (and your father’s loan as an unsecured loan that is entirely his). I don’t know, I’m just guessing. A bankruptcy attorney will have to take a look at all of the relevant documents in person (including any written agreement between you and your dad) to get a real handle on this and advise you what effect your bankruptcy may have.
Regarding “taking stuff” – in Ch 7 each state allows “exemptions” – property that is “exempt” from being taken from the debtor to pay creditors in Ch 7 bankruptcy. Some states are much more generous with exemptions than others. But each state’s exemptions are different, so – again – you will need to consult a local bankruptcy attorney to determine which of your assets are exempt (i.e., won’t be taken to repay creditors).
The vast, vast, vast majority of Ch 7 consumer bankruptcy cases are “no asset” cases, meaning that the debtor has no assets (other than those that are “exempt”) for the trustee to “take” and liquidate to repay creditors.
The trustee does not rummage through your belongings looking for stuff to take away from you (a frequent but unfounded fear of many seeking to file bankruptcy). I have never heard of an instance of an ordinary consumer having to give up clothing or personal effects in a Ch 7 bankruptcy (possibly in some celebrity bankruptcies where the celeb may have 100′s of 1000′s of dollars worth of designer clothing that conceivably could happen, but not with ordinary non-millionaires).
Most bankruptcy attorneys offer one free or very low cost appointment to assess your situation and advise you of your options. Take advantage of that and schedule an appointment with a local bankruptcy attorney to get real answers to your questions from an experienced bankruptcy attorney licensed to practice in your state.
Do not rely on what you read about bankruptcy on the internet (or “hear” from well-meaning friends and acquaintences), as much of that information is outdated, only partially true, true only in some other state but not yours, was poorly understood by the person trying to explain it in the first place, or is just plain inaccurate. Get the real scoop from a real lawyer with a face-to-face appointment in your local area.
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