What to Do When Declined for a Credit Card

Have you recently applied for a credit card and got denied? Instead of trying your luck and submitting applications to other issuers, you should first find out the reason of the rejection. Why did this issuer refuse to grant approval? Could it be that you did not meet the issuer’s criteria, particularly the credit requirement?

There are credit cards in the market that are only available to people with good credit history or credit score. Hence, if you have bad credit history or if your credit score falls below the average rating, your credit card application may automatically be declined. This is why consumers are advised to check the prerequisites prior to submitting an application.

More importantly, you need to be aware of your current credit standing. Do you have good credit? What is your exact credit score? You might think you have good credit but your score may not be enough to get approved for a particular credit card. Thus, the best thing to do is to check your credit report so you’ll know exactly where you stand.

If you’ve been denied by a credit card company or a lender, order a copy of your personal credit report immediately. Consumers are entitled to receive free credit reports from the three major credit bureaus once each year and you can request for your free report at www.annualcreditreport.com. Upon checking your report, you will be able to see your exact rating and know for sure which credit cards will work for you.

What if you have poor credit? Can you still get a credit card? The answer is yes. There are credit cards in the market that are especially created for customers with imperfect credit. In fact, there are different types of credit cards for bad credit that you can choose from such as secured credit cards, unsecured bad credit credit cards, and some prepaid debit cards.

A bad credit credit card can be used for rebuilding bad credit. These special credit cards report to the three major credit bureaus so you can raise your credit score as you use the card regularly and submit your payments on time. Of course, the rates, fees and features of each bad credit credit card varies, depending on the type and the issuer so you need to evaluate and compare your options.

For instance, a secured credit card requires the submission of cash security deposit which can be anywhere from $200 to $500. The limit will usually depend on the amount of your deposit so if you prefer a higher credit line, be prepared to provide a larger cash deposit as well.
rnMeanwhile, unsecured bad credit credit cards do not require any cash deposit but may require monthly maintenance fees. Furthermore, some prepaid debit cards today can be used for rebuilding bad credit as long as your account activities will be reported to a major credit bureau.

Credit cards for bad credit offer guaranteed approval regardless of the person’s credit history or credit rating. However, the best credit card deals are reserved for people with good credit so it’s still ideal to aim for a higher credit score. If you can’t qualify for a standard credit card at the moment, you can get a bad credit credit card and use it to improve your personal credit.