New data has identified that consumers become offended if their credit card application is declined. As a result, 70 percent of people said they wouldn't do further business with the financial institution concerned.
It's no surprise to hear that rejection is hard to take, especially if people are depending on a credit card or loan to get them out of a sticky spot. Almost half of those questioned in the survey said that having their credit card application denied was embarrassing and that they wouldn't tell family or friends. Approximately a third of respondents believe that consumers whose applications are declined are irresponsible with money, but this is not necessarily true.
By law, lenders must tell you why your credit card application failed, which can help you ensure that it doesn't happy again. If, for example, you are turned down because you couldn't prove enough disposable income, you can then rearrange your finances before applying again.
Your credit card application may be rejected for various reasons, including not having enough income, having a poor credit history, or having too much debt. You can work on all of these issues to give yourself a better chance of success with your next application. However, it is important to realize that a declined application could affect your credit score. For this reason, you should review your credit report first and only apply to cards marketed towards your specific needs. Make sure you include all the necessary details in your application and that all the information is accurate before submitting it.
You can check your credit score and read your credit report for free within minutes using Credit Manager by MoneyTips.
If you want more credit, check out MoneyTips' list of credit card offers.