Credit Card Applications – What To Believe?

You must be receiving several mails for credit card applications. They come with a tag saying that you are ‘pre approved for credit cards’. Isn’t that good to hear? But listen carefully; you have been pre approved for making an application for a credit card. It just means that there is still a long way to go before you could get your credit card.

Then what do you mean by getting a number of mails everyday asking you to apply for credit cards? Well the answer is very simple in the sense, all credit card companies in general are into intensive marketing spree targeting a particular group of prospective customers and creating a sense of status and achievement in the minds of target group by owing the credit card offered by them.

Marketing Gimmicks by Credit Card Companies

There marketing strategy has become so impressive and effective that these days’ people at large are forgetting the real logic behind usage of credit cards and the consequences they end up facing due the improper usage of the card. In short, using credit card simply means that you spend out of tomorrow’s money, which is bad for an individual’s financial condition. Tomorrow is uncertain, instead of being prepared for future uncertainties you end up creating liabilities out of unearned income.

Further, people now a day’s find cash purchases out of fashion or rather a detriment to their status, instead card payment more convenient and more of a status symbol. When an individual spends out of his card he fails to feel the loss of hard earned money, which you certainly tend to feel when you make cash payment. It rather makes you feel the need to say ‘enough’.

You can spend only as long as there is cash, whereas in case of card purchases you can spend way above your bank balance or availability of liquidity.

Hence please be vary of aggressive and an impressive marketing gimmick which rather makes you forget the need for a logical thinking and creates a sense of addiction. Not only does it trigger you to make an application but also creates a sense of ready availability of cards immediately on your submission of application form.

Causes of Rejected Credit Card Applications

You had been flooded with mails, there was a constant reminder of credit card availability listing the various benefits of owning the card and advertisement was so impressive that you felt great about applying for a card. You were so confident that the moment you make an application you will get the card right across the table. Not even a second did you think of the card getting rejected? It was not you but the company which had been constantly reminding you. You waited and waited there was no reply from the card company, slightly worried you gave a call to know that your card application had been rejected. It was rather shocking, because after all the hue and cry, you have been rejected.

Well there is no need for you to get shocked! If you know the process as to how the credit card application is being processed, it will let you assess your situation all by yourself.

• It is important for you to have good credit score or credit status
• No credit score is only a detriment. With no previous credit score the card company will not be in a position to assess your risk and your credibility.
• Your earnings should be sufficient and should satisfy the requirements and eligibility criteria of the card company.
• How long you had been on employment is another deciding factor based on which your application is processed. The company may need some time before issuing a card, if you have just taken up employment to ensure you stay that.
• If your record shows late payments and default in repaying your other bills, it will certainly act against your interest in card issuance.

All the testing factors are about ensuring that the card company is in a position to evaluate their risk factor in proceeding with a credit transaction.