Photo: Bank of America / Courtesy
Credit cards can be synonymous with a respite in an economic emergency, many people take out this financial instrument to be occupied in essential or adverse moments, but there are those who use them as an extension of their salary to take out unnecessary expenses.
Perhaps this last example shows that many Americans by the way in which they use the credit via card they can lose control of their expenses and in the end it will be difficult for them to endorse their credit because they end up presenting debts.
When this happens, financial institutions are likely to deny the applicant access to a credit card, a situation that can be extremely complicated for consumers who aspire to credit.
What factors influence to deny a credit card?
-Recent delays in the payment of some other credits, they do not necessarily have to do with credit cards, but it can be the mortgage of a house, the monthly payment of a car or a departmental card.
-That the requested credit exceeds its payment capacity.
-Another reason to deny the credit card has to do with the number of commitments that are had in relation to loans, if the applicant has many debts, even if he is punctual in his payments, the bank will not risk that the possible debtor does not comply
-Being unemployed or continually changing jobs may be reason enough for a credit card to be denied.
-Sometimes applicants for a credit card may have a good credit history, but if the bank considers that there is something to not grant the plastic, such as a financial problem of the person, then the card can be denied.
How to fix the problem?
The Federal Trade Commission of the United States points out that people who have been rejected must follow some steps to be able to solve this problem, since having a credit card can be a financial support for families.
-As a first step, the person who applied for the card must request a detailed report of the specific reason on which the application was rejected. If the problem has to do with your credit score, then the only way to achieve this is to catch up on pending payments.
-According to Bank of America, to improve the credit score, the minimum payment of the debt must be made before or on the due date, this is essential because a precedent of good or bad debtor is created.
-It is also recommended that consumers review their credit reports at least once a year and verify that the information is correct.
-Bank of America maintains that having credit cards and using them is not bad, but it is important to keep your debt under control. It’s best to pay your credit card bill in full each month. If you can’t do it, pay as much as you can.
-For those who have a low credit score, they can apply for a secured credit card. Holders of this type of card must make a deposit, which acts as a guarantee if they are ever unable to make payments.
-People who, for example, go through a financial downturn or who have changed jobs, but have a good credit history, have the option of direct negotiation with the bank, in most cases an agreement can be reached. It is likely that ask you for proof of income, your social security information, and your address to verify your identity and information.
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