An industry expert has advised consumers that if they are turned down for a credit card application, they should pick up the phone and try again. Thousands of customers who were rejected the first time round have found that they secured credit when trying again.
Neil Faulkner says that if your credit card application is rejected to you should tale a number of steps before applying again. In these times of tight credit rather than giving up we should be more persistent with lenders.
On first being rejected he advises to check whether you already have a credit card with that company. "A few large card issuers provide credit cards for dozens of brands, and they won't let you swap with them from one deal to a better one," says Mr Faulkner.?
If you do not have a card with this issuer, take time and spend some money obtaining your credit records. The money you spend doing this could save you hundreds in the future.
Mr Faulkner says that you must apply to all three credit-reference agencies to get your reports as they will vary. Each report will cost you ?2, money which one consumer says was "the best ?2 I've spent in a long time."
After being rejected for credit and obtaining his credit records, he found that debts which were settled still came up as outstanding on the reports. He wrote to the lenders and succeeded in getting that amended. This is not uncommon and is just one of the many reasons why you should review your credit records for yourself.
Another option is simply to appeal the credit rejection straight away, which has worked for many borrowers. The sooner that you get the appeal in, the more likely you are to have the decision reversed, so in many cases it is not even worth waiting for the credit reports to arrive before appealing the decision.
The decision is often reversed as the initial assessment is, in many cases, made by a computer. The computer can be much stricter than a person, rejecting credit on the basis of things such as a change of occupation or address.
Many companies admit that they simply made a mistake with the first application. A large number of people who had the decision not to approve credit initially turned down are never told why it was then reversed. It seems that perseverance really does make a difference when applying for credit cards.
Mr Faulkner recommends that you "keep your letter short and polite, but include a list of details about yourself and your financial position. If you feel that there is some information that wasn't taken into account, e.g. you think you are responsible with your money or you're due a big pay rise, then say so!"
Some may be put off appealing the decision to turn down your application for a credit card amid worries that it will damage their credit reputation if they reapply for credit, leaving a 'footprint' on their record.? Mr Faulkner reassures consumers that "you'd get the same footprint if you applied for credit elsewhere. Moreover, on most occasions you won't actually receive another footprint, so you're effectively getting a second shot at your preferred credit card or loan for free!"
