Applying For A New Credit Card For Bad Credit- What Goes In Your Mind
You will find a number of options when it comes to choosing your first credit card for bad credit and you will also know it for sure when you are ready to apply for it. Usually, whenever you are making this decision, a credit card comparison is an absolute must. Whenever you are filing out a form online, or asking your friends around about how to submit the application and which credit card options to consider, the one thing that is constantly at the back of your mind is that how you will be able to pay off all your credit card bills at the end of the month.

Very often, you can easily find out whether you are approved for a particular credit card or not within just seconds of submitting your application. At times you will have to wait for the credit card issuing companies / bank / financial institutions to manually review your application before it is approved. If you do not receive any answer immediately, you may choose to mail the company / bank in about 7 to 10 days. This is your first stepping stone towards better finances and a prosperous life.

Importance Of Additional Information When You Apply For A Credit Card
Sometimes the bank / financial institution will also ask you for additional information such as your annual income. They also ask for related documents to verify your source and annual income to make sure that you did not just make up a number when you were filling up the application form.

Is It Important To Have A Credit Report Before You Fill Out A Credit Card Application Form?
If you are looking for a credit cards for bad credit, it is obvious that you do not have any established credit or any credit score that will be ideal to present you as a "perfect" candidate for a credit card in the first place. Regardless, if you are applying for a new credit card, the lender / bank is going to check your credit reports. It is called a “hard enquiry”. Your credit report includes a record of this enquiry for 2 years. The same data / information is going to be factored into your credit scores for one year. Remember, the hard enquiry that took place is going to remain on your credit report whether you are approved or denied. It does not however, contain any information about the status of your credit card application.

Worrying About A Hard Enquiry On Your Credit Score
We all know that a hard enquiry has potential negative effects on your credit scores but these are very minute in nature and do not last for a long time. It is a normal part of the credit card application process. It happens because you are currently seeking a credit card quite actively and that can indicate a higher level of credit risk attached to you as a borrower.

Credit Scoring Models And Your Credit Score
Do you know that there are currently thousands and thousands of credit card applications in process at the moment? The creators of the leading scoring models have to review practically countless of credit reports on a daily basis. They also do that whenever a new score is created. They assess those reports on the basis of how they have performed over a period of time. These reports are a reliable depiction of how people apply for new credit cards and what the frequency of their application is. These reports also tell the scoring model creators about how likely these individuals are to pay up their credit card bills and who among them will not be able to do so at the end of every month.

Do Not Overthink About A Hard Enquiry
Yes, a lot of people tend to think that a hard enquiry is going to reflect poorly / negatively on their credit scores. This is not the case. A few hard enquiries are not usually a big deal even if they are conducted over a period of 2 years. But if there have been several hard enquiries on your credit standing within a short span of time, then that is a different case altogether. Remember, excessive enquiries are a sure indicator that you seek credit because you are facing a tight financial situation at the moment. Do not make the mistake of submitting 10 credit card applications over a 6 month period. This will imply that you are a risky borrower.

Also, if you have a high number of enquiries, your credit score is going to decline significantly. Eventually, such low scores will make it even more difficult for you to get approved for any credit card or any other financial instrument for that matter.

Credit Card Application Denied-No Need To Worry
At the end of the day, if the bank / financial institution does not have anything to offer you, that is, in case you have a very poor credit, they are going to send you an adverse action letter. It is also called a notice of adverse action. This letter is more formally referred to as a declination letter. This is what happens when your application for credit card gets denied. Remember, as pointed out earlier, there is a big myth attached to this denial. A lot of people think that this denial will be reported to the leading credit scoring agencies. This is absolutely untrue. There has been historically no section under any credit report generated by any of the leading scoring models that houses the credit card application status for any applicant. The letter that they send you however contains the information that formed the basis for the denial. They will further give you the information / source / report that they used as a basis for the denial and will also give you the contact information for the same so that you can verify the reason for the denial that has been stated in the letter.

They will also disclose your current credit score to you. If they find it to be below their minimum standard, you can easily understand their reason for denying your credit card application. You should remember that applying for a new credit card is a stepping stone towards better finances and a good credit score. Making sure that you use it wisely and pay off all your bills intelligently and on time is entirely up to you.

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