How To Determine Why Your Credit Application Was Denied

If you apply for a student credit card and are turned down by the lender, federal law requires the creditor to provide you with the name of the lending agency used to acquire your credit history. Furthermore, if you contact the bureau within two months of receiving the denied application, you are entitled to a copy of your credit report at no charge. The goal in mind is the building your credit for the future.

Credit card experts highly recommend taking advantage of this law and requesting a credit report from the reporting bureau. Once you have the report in hand, review if for errors. Your report can tell you a lot about your credit history and provide clues as to why you were denied credit. Additionally, by reviewing your report, you can see the areas you need to work on to improve your credit history. If you find incorrect information on your credit report, you can request the bureau to conduct an investigation into the matter. Keep in mind, however, the only way to make up for negative marks on your credit report is through responsible credit management.

It is important for college students to take credit seriously and not lightly. Learning the basics of good credit is a valuable tool to help sharpen, or better one’s credit score. A budget is of the utmost importance, but what is even more important is sticking to that budget. A game plan of charging only what you can afford to pay off each month is a good rule of measure when utilizing one’s credit card. It might be tempting to fill out an application for credit on campus in order to get a free giveaway, but each time this is done it goes on one’s credit report as a credit inquiry. Many banks have programs offering a credit card for students. It usually has a lower spending limit, which is essentially in the best interest of the student. Lower initial interest rates, or annual percentage rates usually come with a student credit card as well. It is important to note how much the late fee is on a specific credit card when considering options. Another factor to consider is a cash back incentive. It is important to take one’s time when shopping for a first time credit card. There are many credit offers out there for college students, it’s not like they’re going away. On the internet, much information is out there to learn the basics of credit, be it via a credit cards blog or visiting the home pages of Visa or Mastercard. Taking notes on different credit card offers, highlighting important points mentioned above, as well as over-the-limit charges and co-signer options are important variables when selecting a card.

Student Credit Cards

Student Credit Cards are one of the first “adult” decisions high school graduates face as they leave their senior year. Each year as students graduate their mailboxes begin to bulge with credit card offers. The array of choices can leave students flustered and confused about their next move. The following are a couple tips to help students determine how to approach student credit cards and credit related financing, ie loans. Credit and loans are similar as they both produce debt.

To Apply or not to Apply
When considering a student credit card, first ask yourself this question – Do I need or want a credit card? If the answer is “want” you might reconsider applying. Need, however, is a different story. Truth be told, more then likely you “need” a credit card (as in one card). Student credit card offers are often “offered” to students on-campus - offering a free pizza in exchange for applying right then. It is not a good idea to apply until you yourself are ready. Many students seek a card designed specifically for college students and can help those new to the credit world build a solid credit history. Plus, it is always a nice reassurance to be able to have a safety net of credit in your pocket in case an emergency comes up (please note, purchasing that thing you have been dying to have does not constitute an emergency).

Interest Rate Riffraff
If you do decide you want a credit card, do not apply through the first credit card application you happen to get in the mail or with your college textbooks. Deciding on a credit card requires “shopping” for the best interest rate and terms. Credit card interest rates vary in a major way. Depending on your credit history and the type of card you apply for, you can get a credit card anywhere between seven percent and 36 percent. Credit unions sometimes offer lower rates. Visit the Government’s Credit Union website for more. Now obviously the lower the percentage rate, the better. When applying for a card, ask if your interest rate is fixed or if it can change. Most credit card companies will up your interest rate if you are late on a payment or go over your limit. An alternative to student credit cards is a lower interest private student loan - which in many cases often carry a lower interest rate than a credit card. The student loans are distributed each semester in a lump sum.

This is for college students looking for credit BUT wanting to take their credit futures seriously. Passages in these posts will touch on tips and resources to help build and manage credit wisely. If you already have a credit card and are looking for factual information on credit reports, visit the U.S. government’s page for information on free access to credit reports. College students without credit should compare and contrast each college student credit card before actually applying. Students without an income are urged not to consider a credit card. Carrying a credit card carries new financial responsibilities that must be met.