The mail keeps coming, and you keep reading, “No,” after “No,” after “No.” While your friends, co-workers and colleagues, all scream “Charge It,” “Charge It,” “Charge It.” Getting repeatedly declined by the credit card companies can be a discouraging feeling, especially when the people closest to you rely on credit for everything.
If you are getting denied by credit card companies, it usually means you have little to no credit. It’s not the worst thing in the world, because now a days, there are many mechanisms in place that help people that are new to credit or just plain bad at credit can use to help them obtain a new credit card.
Establishing credit is key in this era, as it basically is the entry way to mortgages, car loans, bank and student loans, and other items that compose the American dream. If you are new to the credit card world, credit lenders can’t check your FICO score to determine which credit card would be right for you. Without a FICO credit score, credit card issuer will look into the type of bank accounts you a hold. Even though a checking account isn’t reported to the credit reporting bureaus, banks still check your account to see if you have relationship with the bank and if you have a healthy bank history. So make sure you set up a checking account at your local account, and treat it with care, as the credit card issuers are probably watching.
Credit card issuers also look at applicants with the little or no credits’ employment history. If you hop around from job to job, that doesn’t look good to future employers as well as credit card issuers, also long periods of unemployment do not look good. Analyzing your employment history shows that if you can get and keep a job for an extended period of time, you will be less likely to be late on payments.
In addition to employment history, banks checks your past residences. If you have a stable residency record, you are more likely to have a stable credit card history. It also helps if you have some bills or utilities put in your name, as it shows ownership and proof of residency.
If your credit is non-existent or it’s barely there, there are ways for you’re to establish some financial backing with the banks, in order to portray yourself in a better financial light. If you adhere to keeping a your checking account healthy, and remain stable in your residency and your employment, credit card issuers will be more likely to take a look.