When youâ€™re out in the mall, chances are you would see a lot of Credit Card agents giving out application forms for credit cards. It is also common that they send out mails, make random phone calls or even text messages to market their product. One would think that getting a credit card is easy. For most, it may be, but for some it can be frustrating. If you are one of those whose application gets rejected, follow these few tips next time you send out an application.
Choose the Credit Card that suits you best
There are different types of credit cards and most of them depend on the merchant they are partnering with. For example, there are credit cards that partner themselves with drug stores wherein if you buy medicines on a regular basis, you would earn special discounts or rewards for it. The same goes for frequent travelers or gym goers. These credit card companies think of ways to attract a particular market and thus make their product more attractive to them. Make a comparative study on these credit cards and choose the one that would benefit you the most. Go over the application form thoroughly before sending it out.
Ensure you have a favorable credit data
Any credit card company will decline the application of anyone whose financial integrity is questionable. Credit card companies will make a thorough check on your background. Make sure you donâ€™t have any unpaid bills as these will put a bad score on your credit history and will affect any financial transaction you would have in the future. Credit card companies would want to make sure that you are a good payer.
Submit all requirements
All credit card applications will require documents that would vouch your financial security like employment certification, income tax return, pay slip and proof of billing. Again, they would want to make sure that you have the capacity to pay. All these requirements should be attached to your application form if you donâ€™t want another rejection. Also, make sure that all the blanks in the application form are filled up. Theyâ€™d rather see an N/A than a blank.
Limit your Credit Card Use
If you are an existing credit card user and is considering getting another one, it would be wise if your existing credit card is not maxed out all the time. Using all your credit limit sends a signal that most of your purchases are on credit and that you are not paying off your debt as responsibly as you should. If you can, limit your utilization up to 30% only.
Be Prudent in Sending Out Applications
Do not send out applications to credit card companies all at the same time. This would give an image of desperation. Limit your application to just about three at a time. If you get rejected, wait for a few months before sending applications again.