How to be avoid credit card rejection

By Donna Jennings Staff Writer Thursday, 22 May 2008

Credit Card Rejections Up as Banks Get Jittery 3 Steps to Avoiding Credit Card Rejection: Gain some insight into your credit status before you start If you’re not squeaky clean, opt for adverse credit credit cards Check credit card application requirements before applying Compare credit cards for people with poor credit history How adverse credit credit cards work How to choose an adverse credit credit card How to use an adverse credit credit card Related Money News See our other recent related news stories: Cash-wielding shoppers losing out on cash back Shoppers are increasingly returning to cash as the credit crunch bites, but in shunning credit cards are losing out on hundreds of pounds in cash back rewards.

AN estimated 18,000 UK credit card applications are reportedly being rejected every single day as jittery banks tighten their lending criteria and err on the extreme side of caution.

Now, even a missed mobile phone payment sometime in your past could cause your credit card application to be declined.

Worse still, more than limiting the average consumer’s credit card options some turn downs could leave a black stain on your credit rating, thus increasing the likelihood of future rejections.

Sorting wheat

The recent credit crunch has taken its toll on banks and is forcing them to sift the wheat from the chaff when offering credit, whether it be in the form of mortgages, loans or credit cards.

With such a high volume of applications being rejected per day – one every 2 seconds of every working day - it is vital to keep a healthy check on your credit history to make sure that you have a concise record of up to date payments before applying for any form of credit.

Improve your chances of being accepted

The days of easy lending appear long gone but there are three important steps you can take to improve your chances of being accepted for a credit card.

1. If you’re not squeaky clean, act accordingly
   
   Any bad history on your credit file will certainly be rejected by most of the major credit card companies. If your credit file is not squeaky clean, ensure that you approach a lender who specialises in adverse (or poor credit history) credit.



2. Check application requirements before applying
   
   Before signing on the dotted line, ensure that you meet all of the requirements of the credit card company such as annual income, age, employment status and residential status.



3. Gain some insight into your credit status
   
   Apply to an online reference agency such as Experian or Equifax to gain some insight into your credit status. If any late or missed payments have shown up recently, it may be worthwhile putting your application in the drawer for a couple of months until you are back on track.

This squeeze in lending has come at a time when inflation is causing many anxious consumers to rely on plastic to help out with household costs.

To avoid rejection, make sure that your details match up with the requirement of a credit card company before applying.

Otherwise, all of those rejected applications could come back to haunt you...