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“Credit card denied!”
Have you ever received this kind of letter? It’s hard enough
to be rejected, but it’s also confusing for some people. What
did they do wrong? How come their friend or peer — with exactly
the same income and years of job experience — got approved,
while they did not? Let’s look
at the application process to pinpoint some things that can affect
its success.
Irregular Income Levels
Many people think that the more they earn, the
better their chances of getting credit card approval. Actually,
this isn’t exactly true. It’s not really the amount
of income, but the stability of income. Many credit card companies
avoid accepting the applications of people who have variable income,
even if there are months when they make a really healthy amount
of money. They see the fluctuations in pay as a sign of risk:
“sure, he’s earning now, but what happens in the months
that he doesn’t?”
If you have variable pay — maybe
you’re a freelance writer, for example — then try
to get a part time job where you’ll earn a set amount each
month. You can teach one class at school, or even wait tables
— it really doesn’t matter, as long as you get a salary.
Even if the income is low, it’s stable, and the worst that
can happen is that you’ll be given a low credit limit. That’s
okay; when you have a record of regular payments, it’s easy
to call the credit card company and ask for a change in credit
limit.
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