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If You're Rejected for a Credit Card
There are many companies with many different
kinds of credit cards. You applied for one and
get turned down, don’t give up. Different
credit card companies have different standards.
But if you are turned down by several companies,
it may indicate that you may have to try a secured
credit card. Your first step upon rejection is
to exercise an important right available to you
under the Truth in Lending Act.
- Understand Why You Weren't Approved.
The first step is finding out why you were denied.
Usually the rejection letter will explain this
to you. If you don’t understand the reason
ask for more information.
- Get Your Credit Report and Credit
Score
Generally, any reason they give will be related
to your credit report. Because of the Fair Credit
Reporting Act you will be entitled to a free
copy of this report from the company who supplied
information to the credit card issuer When you
get the copy of your credit report go over it
carefully. If you find errors or omissions contact
that reporting company with detailed information
disputing the issue. They will investigate and
let you know what happens.
- Try Again.
As mentioned before different lenders have different
standards for allowing credit. Try a different
company. It can be more difficult if you are
trying for a major credit card. If you find
out that your credit needs help look for merchant
cards, or gasoline cards they are easier to
get and good for building or rebuilding your
credit if used wisely
- Get a secured credit card
If your credit score is poor some times your
only recourse will be a secured credit card.
This type of card is generally secured by a
deposit in a savings account or a C.D.. The
amount on deposit is determined by the credit
limit. As long as you oay your payments on time
the issuer will report to the credit companies
and it will benefit your credit score. If you
default on the card then the issuer gets to
keep your deposit money.
No matter what kind of credit card you are looking
for it pays to shop around and get the one that
is best for you.
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