It can be nerve-wracking having to wait to hear from lenders about your application. And so, what you do is apply to as many credit cards as you can. In your mind, you’re thinking that the more applications you submit will mean a more significant chance of at least one of these companies giving you their approval. But this is where you are wrong. Here are a few reasons why you’re actually lowering your chances:
With each application you send, lenders will be given the opportunity to take a peek into your credit profile. This will tell them more about your finances, like if you pay your bills on time if you’ve had to file for bankruptcy within the last five years, as well as how you recovered from financial hardships in the past.
You should know that your credit score will take a blow every time a lender takes a peek. And having several lenders take a look at your profile within s short time frame does not bode well as your credit score will be damaged more and more.
To avoid this, apply for each credit card one at a time. Send your application for one and wait for their response. If you’re approved, then congratulations! If not, then you can either try with another lender or figure out as to why you got the rejection in the first place.
There is no solid answer to this question, as it all boils down to your current credit score. Say, for example, you have outstanding credit and have fallen on some hard times; you can apply to various lenders and not have to worry about your score taking a hard dip.
However, if you have a reasonably decent or borderline credit score, you will want to be more cautious with each application as it will be a more significant blow to you.
Another way to think of it is like playing your favourite fighting video game. You go all out when your life bar is full, but you’re more cautious and consider your actions all the way through when you see that the bar is smaller.
Rejection is all part of the game. If you’re slapped with it, then it is time to pick up the pieces and figure out what you need to do next. You can do that by identifying the problem at hand.
One of the biggest reasons for rejection is a bad credit score. If this is the problem, then you will need to figure out a way to fix it. There are plenty of ways for you to adjust your credit score, but it will take time and effort on your part.
In fact, the more you make payments on time, the steadier your credit score will climb, thus increasing your chances of getting approved for your next credit card application.
The best part is that now you will have a car that you can use for all of your trips, and a way to rebuild your credit score all in one go.
Another reason for your rejection could be incomplete documents. This is a lot easier to fix. All you need to do is find out what these documents are and re-submit your application. Communicate with the lender to find out what the missing documents are and set up an appointment.
When you finally get the credit card of your choice, all of the efforts you’ve put towards it will all be worth it in the long run. With that said, carefully choose which card you apply for to ensure that you can afford the payments associated with it.