Credit Card Bank

Posts Tagged ‘Credit Reporting Agency’

It seems to many today that you could be John Dillinger in your lifestyle and get anything you want on credit so long as you have a high enough credit score. How did that come to be?

In previous decades, Creditors had a very sensible lending evaluation approach that employed 4 basic common sense and easy to understand guidelines. These guidelines were administered by actual human beings one application at a time.

Most creditors looked at the following criteria:

1. Paying Habits.

This was simply a look at your credit report, your credit history. The length of time you had been “tracked” in the subject credit reporting agency, the age of your “trade” or credit lines (how were you rated by your creditors over at least one year or more) and the presence of any collections, bankruptcies or tax liens. There were also credit exchanges prior to the “Fair Credit Reporting Act” in the early 70′s that tracked locally pertinent credit activity that wouldn’t necessarily show up on your credit report. As examples, this could be Apartment rental agencies, local jewelry stores and “buy here, pay here” auto sales.

2. Ability to Pay.

For those who have, at any time of their life, submitted a credit card application, a rejection letter is not a new thing to you. How frustrated you feel when you are refused a credit card, especially if the card was the ideal deal for you!

However, there is still hope. You can alter your situation and get your credit card application accepted by the issuer. Let’s take a look at how you can turn the tables in your favor.

Know The Reasons For The Rejection Of Your Credit Card Application

The first thing you should do after receiving the rejection letter is not cry in despair, but read the letter carefully. In most of the cases, the rejection letter contains the reasons why your credit card application has not been accepted. If it does not tell you the reasons of rejection, then it may state ways to find them out.

If your credit card application has been turned down due to your bad credit score, then determine the contact details of your credit reporting agency, which your credit card company contacted for verification.