Credit Card Application - Getting Approved

Hardly a week goes past without a credit card offer arriving in the mail. They all make the credit cards sound attractive but you need to do your research and compare products to find the right card for you. Once you have settled on the cards you are interested in you need to get together some information to maximize your odds of getting approved and avoiding credit score damaging rejections.

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 previously gone through a bankruptcy then there is a 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: There are a number of factors that credit card issuers will class as a credit risk, these include:

* 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.