What Can I Do When My New Credit Is Denied?

When you have new credit denied, it is possible to have the creditor reconsider your application. This starts with finding out why the application got denied in the first place. It is easy to learn why your application met with denial.

Lenders have to give you an adverse action letter to explain why you were denied. The lender will also give you directions on how to get your complete free credit report (from the bureau that they used). 

After you read through the adverse action letter, you might contact the creditor to request that a one of their representatives reconsider. This becomes more likely to succeed if you have new or additional information that they did not include originally in the application. Now is the time to provide it.

You might not have listed all of your eligible income sources in the application. These can include a spouse’s income, government benefits, child support or alimony, or retirement savings. There could also be incorrect information on your credit report that you need to get corrected. This is a matter of opening a dispute with the credit bureau (filing online is the best way) that contains false or incomplete information.

If it is the same creditor with whom you have another account, you might ask them to move some of your existing credit line to the new account. Experts generally recommend that you wait six months between different credit card applications after credit has been denied. Every person’s situation is different and so your time line could vary. 

Is It Possible to Have Too Many Credit Cards?

There is no straightforward answer to the question how many credit cards are too many. The average American has three open credit cards. If you have so many that you can not manage to keep up with the monthly payments, due dates, interest rates, fees, charges, and other important information then this is too many. 

Too many credit cards can cause you to have a higher debt to income ratio. Lenders contemplate your available credit and treat it as potential debt when they evaluate your loan applications. If they calculate assuming that all of your cards get maxed out, then this may cause your debt to income ratio to be treated as over 37 percent. This is a point where you might consider closing credit card accounts (newest ones first to not impact your average credit length history too much). 

With more credit cards, you may be tempted to use them to excess. It is important to keep your total credit utilization to less than 30 percent and ideally under 10 percent (this component comprises 30 percent of your credit score). The simple way to minimize your credit utilization is to keep a smaller number of cards. 

You might be better served to have other types of credit in lieu of more credit cards. Credit score algorithms consider the kinds of credit you have to ascertain how much experience you have with other types of credit. Credit mix comprises ten percent of your personal credit score. 

In the end, you need to have no more than one to three credit cards to avoid getting yourself into trouble. Managing them all gets much harder as you have more than three. 

High Credit Score Secrets

Poor Credit Score Could Cost You Hundreds of Thousands of Dollars!

Increasing your score from ‘fair’ to ‘good’ saves you an average of $86,200* over a lifetime. Image what you could do with that money.

Did you know that 82% of financial problems are due to a lack of credit card knowledge? With over 75 million people in the United States in need of credit improvement or repair, one of the largest issues is the lack of credit know-how.

A good credit score is essential if you want to enjoy financial freedom.

Learn How to Use Credit Cards to Build Good Credit

Good credit doesn’t happen overnight. Discover the most effective strategies to boost your credit score from as low as 450 points to over 810. Understand the tactics to build excellent credit for yourself and how to guard that good score for a lifetime.

Improve Your Credit Score in 45-60 Days or Less

This practical credit compendium reveals over 50 ways you can instantly boost your credit rating. Understand the exact mathematical algorithm that all 3 major credit bureaus use to calculate your credit score. Learn what actions you can take to improve your credit score and what behavior will demote it.

High Credit Score Secrets Reveals:

  • How to get free credit reports and monitoring services
  • Quick solutions to the most common credit problems
  • Best credit practice based on age and profession
  • What credit cards to use based on your financial needs
  • Understand exactly what credit agencies are looking for
  • Most effective ways to build and improve your credit score
  • Step-by-step process to settling your debts
  • Best identity theft protection and monitoring services

Includes simple and easy to follow instructions on how to handle credit bureaus if they refuse to remove inaccurate, unverifiable and questionable information. What you need to know about the recent consumer-friendly reforms in lending, credit score calculation, and credit bureau behavior.

Smart Do It Yourself Credit Repair

Learn the exact methods that the credit bureaus don’t want you to know. Apply the simple step-by-step process the experts use to delete all derogatory items from your credit reports. Bankruptcies, late payments, repossession, collections, judgments, liens, etc. Imagine being pre-qualified for your dream home, the car you always wanted, the lowest interest on any loan, and credit cards with zero interest rates over long periods of time.

Don’t let bad credit hold you back from achieving financial freedom. Your credit score not only influences all your future choices, but it also can save you thousands of dollars. In today’s financial driven world it is the most critical decision to keep educating yourself.

Book Review by Ray F

I see High Credit Score Secrets as a valuable reference book. It’s accessible language, formatting of financial information into digestible sections, repetition of important concepts and terms, and step-by-step internal “guides,” make it your “go to” reference whenever you have credit-related questions or situations.

What this information provides is a foundational understanding of credit that will enable you to create a solid strategy for handling your own. You will learn how to stay out of financial trouble and what the possibilities are for leveraging a good credit score into credit card perks and bonuses (lodging and travel discounts, etc.). Indeed, the section on credit cards suggestions for your age and life situation is invaluable.

I have been personally dealing with credit, credit cards, loans and mortgages for many years. The concepts in High Credit Score Secrets rang many bells for me, making sense of a number of credit experiences in my life. I see that I’ve been both lucky and remiss at times. I think now, having read this book, I can handle things better. And if you take Mr. Herold’s advice to heart, so can you.

You Deserve to Have Good Credit

Don’t be afraid to step up and get a handle on your credit score and report. It’s not rocket science and you have the right to know how you can get good credit and keep it. 

Start raising your credit score. Pre-order your copy now and save 75% on the Kindle version! 

What Is The Best Credit Card to Start Building Credit?

The best of so-called starter credit cards were crafted with new cardholders like you in mind. Each of the best new credit accounts will report your timely payment history to each of the three major credit bureaus. While secured credit cards are a great option for new credit holders, there are some that do not require these deposits upfront.

The Discover It Student Cash Back card does not require a security deposit. This card intended for students just getting started with credit allows you to enrol every quarter to get five percent cash back from grocery stores, gas stations, restaurants, and Amazon.com among other places. Other purchases will earn you one percent limitless cash back. 

The Capital One Platinum Credit Card promises you a starter credit line upfront with an increased limit once you have successfully paid your first five months’ payments on time. It also provides no yearly fees, balance transfer fees, or foreign transaction fees. 

Among the best secured starter credit cards is the Discover It Secured. This card mandates that you pay at least a $200 security deposit but will allow you to deposit upwards of $2,500 when you open the account to have a larger credit limit. 

Discover refunds you this security deposit after you have proven your payment history by transitioning you to a traditional Discover credit card. The card gives two percent cash back on purchases you make per quarter at restaurants and gas stations to your fist thousand dollars in charges there, then it gives you one percent cash back afterwards and on all other kinds of purchases.

Discover also matches all of your earned cash back at the conclusion of your first year with them. 

If you have bad or little credit, Capital One Secured Mastercard offers a $200 credit line with security deposit ranging from $49 to $200. Once you make your on time first five payments, they will offer you an improved credit line. It comes with no yearly fees, car rental and accident insurance, free credit score access each month, and extended warranty coverage. 

What Is The Best Credit Card For Travel And Airline Miles?

The Chase Sapphire Preferred credit card has been named the best credit card for travel and airline miles by many top review sites including Forbes.com. One of its greatest appeals is the upfront sign up bonus. Once you spend $4,000 over the first three months, you receive 60,000 points. 

These points translate to $750 in tangible travel using Chase’s travel portal. You can exchange them for more than this amount even by transferring them to Chase’s loyalty partners including Southwest, United, and Hyatt. 

Besides this upfront bonus, the Sapphire Preferred card gives you double points for every dollar you spend on restaurants and travel anywhere in the world. When you book travel arrangements using Chase Ultimate Rewards, you get 25 percent additional value on hotels, airfare, cruises, and car rentals. 

The card allows you to receive one for one point transfers to many frequent traveller programs. These include the British Airways Executive Club, Air France KLM Flying Blue, Korean Air Skypass, Virgin Atlantic Flying Club, United Mileage Plus, Southwest Airlines Rapid Rewards, Marriot Rewards, IHG Rewards Club, World of Hyatt, and Ritz Carlton Rewards. 

The card includes no foreign transaction fees for purchases overseas. It does have a $95 annual fee of which you should be aware. 

The Capital One Venture Rewards Credit Card is often listed as the runner up for best travel and airlines rewards miles. You are allowed to redeem your miles on any travel purchases, whether or not they are a travel partner. 

Among its big appeals is a double miles earned per dollar bonus on all purchase in whatever category. By spending $3,000 in the first three months, you earn the sign up bonus of 50,000 miles.