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Does getting denied for a credit card hurt your credit score? | Articles

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Applying for a credit card is generally an easy process — but if your credit card application is denied, the entire situation becomes a lot more stressful. You might not understand why your credit request was declined, and you might not know how the credit denial will affect your credit score. You also might be wondering whether getting denied for a credit card will make it harder to apply for credit in the future.

Why would you get denied for a credit card? Will a credit card denial hurt your credit score? Let’s take a look at how credit card denials affect your credit, why your application might have been declined and how to avoid credit card denial going forward.

How a denied credit card application affects your credit score

A denied credit card application is likely to cause a slight drop in your credit score — but not because your credit request got declined. Credit bureaus don’t keep track of every declined credit request, and the only lines of credit that appear on your credit report are the ones that got accepted.

However, the three major credit bureaus — Equifax, Experian and TransUnion — do keep track of the number of credit inquiries requested on your account. There are two kinds of credit inquiries: Hard credit checks and soft credit checks. Soft credit inquiries, which often take place when you are applying for a job or going through the pre-approval process for a loan or credit card, do not affect your credit score. Hard credit inquiries, which take place before a lender makes a final decision on your credit application, are one of the five factors that affect your credit score.

Every time there is a hard credit inquiry on your credit file, your credit score will drop by a few points. This happens whether your credit request is approved or declined. A single credit inquiry won’t tank your credit score, but multiple credit inquiries in a short period of time may suggest that you are a risky borrower — which is why new credit inquiries make up 10% of your credit score.

Why your credit card application may have been denied

Lack of credit history: Your credit history makes up 15% of your FICO credit score. If you don’t have much of a credit history yet, it might be hard to apply for new lines of credit — unless you choose a credit card specifically designed for people who have a limited credit history.

If you want to improve your credit history quickly and become eligible for more credit options, we’ve got five tips to help you build a positive credit history.

Low or insufficient credit score: Most credit cards are designed for people within a certain credit range. There are credit cards for people with bad credit, cards for people with fair or average credit, cards for people with good credit and cards for people with excellent credit. If your credit score isn’t high enough for the credit card you’re applying for, your application might be denied.

If your credit card application is declined due to a low or insufficient credit score, you’re not alone. According to a 2019 Bankrate survey, 58% of Millennials have had a credit card or loan application denied because of their credit score.

Irresponsible card usage: Lenders like to see a history of responsible credit card usage before offering you new credit. If you’ve missed too many credit card payments, for example, a lender might deny your credit card application. Your application also might be declined if you don’t pay your monthly credit card bills on time — or if you regularly max out your credit cards.

Errors on your credit report: In some cases, your credit card application might get declined not because of anything you did wrong, but because of an error on your credit report. According to a 2013 Federal Trade Commission study, one in five consumers had an error on at least one of their three major credit reports. This error could be as simple as an outdated address — or as complicated as a history of missed payments that actually belongs to someone with a similar name.

This is why it’s important to review your credit reports regularly and dispute any errors you find.

How to avoid credit card denial going forward

Review your Adverse Action Letter: The best way to learn why your credit card application was denied — and how you can prevent a credit card denial going forward — is to review your Adverse Action Notice. Credit card companies have 30 days to explain why your application was denied, though in most cases your letter will arrive much sooner.

Your Adverse Action Notice might arrive via mail, email or both. Use the information provided in the letter to prevent future credit card denials. If you were denied due to a low credit score, for example, work on improving your credit score before your next credit card application.

Request your credit report: If you haven’t reviewed your credit report in the past few months, it’s time to request your credit report and scan it closely. Make sure all of the information, from your name and address to your history of credit card payments, is accurate. If you find errors on your credit report, dispute them as soon as possible. Equifax, Experian and TransUnion all offer easy online dispute forms to help you get the process started.

Don’t reapply right away: Although you might be tempted to reapply for credit right away, remember that multiple hard credit inquiries within a short period of time can bring down your credit score — and potentially make it more difficult for you to acquire new lines of credit. Before you apply for a new credit card, look for a card that’s a good match for your current credit history and credit score. That way, your application will be more likely to be accepted.

Take steps to improve your score or build credit: If you can improve your credit score or build your credit history before applying for a new credit card, you’ll be better off. The quickest way to improve your credit score is to practice responsible credit usage on your existing credit accounts. Make on-time payments, pay off your balances in full whenever possible and avoid maxing out your credit cards.

If you want to build your credit history, consider applying for a secured credit card. Secured cards provide you with a line of credit in exchange for a small, refundable security deposit. They’re also an excellent option for people who don’t yet meet the requirement for more premium credit cards. If you use your secured credit card responsibly, you’ll build your credit history and your credit score simultaneously — both of which will help you the next time you apply for credit.

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Loans Bad Credit Online – PNC Personal loan 2021 Review | Fintech Zoom

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Loans Bad Credit Online – PNC Personal loan 2021 Review

Top perks

Low minimum loan amount

Customers can borrow $1,000 to $20,000. That minimum loan amount of $1,000 is unusual in the personal loan industry. A low minimum threshold means you can get the cash you need to cover small emergencies without being tied down to a larger loan.

Wide range of repayment terms

You have between 6 and 60 months to repay the loan. There are pros and cons to longer repayment terms, so this flexibility allows you to customize your term to your situation.. With PNC, you have the option of designing a repayment plan that fits your monthly budget.

Joint applicants welcome

Whether you need a joint applicant’s high credit score to qualify for a lower loan interest rate or someone has decided to co-assume responsibility for a personal loan, PNC allows for joint applicants.

What could be improved

Terms depend on location

The first thing you will be asked is where you live. On its loan homepage, PNC states that “PNC product and feature availability varies by location.” While this may be good news for borrowers in some areas of the country, it could be bad for others. You’ll need to see what it means for you.

Lowest interest rate reserved

If you’re looking to borrow enough to make repairs to your roof or buy a new furnace, you might not borrow enough to qualify for PNC’s lowest advertised interest rate. That’s because that low interest rate is reserved for those borrowing more money. For example, PNC will automatically assign a $5,000 loan a higher interest rate than a $15,000 loan.

Loans Bad Credit Online – PNC Personal loan 2021 Review

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Loans Bad Credit Online – Loans Bad Credit Online – PNC Personal loan 2021 Review | Fintech Zoom | Fintech Zoom

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Loans Bad Credit Online – Loans Bad Credit Online – PNC Personal loan 2021 Review | Fintech Zoom

Loans Bad Credit Online – PNC Personal loan 2021 Review

Top perks

Low minimum loan amount

Customers can borrow $1,000 to $20,000. That minimum loan amount of $1,000 is unusual in the personal loan industry. A low minimum threshold means you can get the cash you need to cover small emergencies without being tied down to a larger loan.

Wide range of repayment terms

You have between 6 and 60 months to repay the loan. There are pros and cons to longer repayment terms, so this flexibility allows you to customize your term to your situation.. With PNC, you have the option of designing a repayment plan that fits your monthly budget.

Joint applicants welcome

Whether you need a joint applicant’s high credit score to qualify for a lower loan interest rate or someone has decided to co-assume responsibility for a personal loan, PNC allows for joint applicants.

What could be improved

Terms depend on location

The first thing you will be asked is where you live. On its loan homepage, PNC states that “PNC product and feature availability varies by location.” While this may be good news for borrowers in some areas of the country, it could be bad for others. You’ll need to see what it means for you.

Lowest interest rate reserved

If you’re looking to borrow enough to make repairs to your roof or buy a new furnace, you might not borrow enough to qualify for PNC’s lowest advertised interest rate. That’s because that low interest rate is reserved for those borrowing more money. For example, PNC will automatically assign a $5,000 loan a higher interest rate than a $15,000 loan.

Loans Bad Credit Online – PNC Personal loan 2021 Review

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Loans Bad Credit Online – Loans Bad Credit Online – PNC Personal loan 2021 Review | Fintech Zoom

Tags: Loans Bad Credit Online

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Loans Bad Credit Online – Badger Advisors Gets Bad Review For Credit Card Refinancing | Fintech Zoom

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Loans Bad Credit Online – Badger Advisors Gets Bad Review For Credit Card Refinancing

Editorial Credit: Djomas

Badger Advisors wants you to believe they are offering credit card refinancing and have begun flooding the market with debt consolidation and credit card relief offers. The problem is that the terms and conditions are at the very least confusing, and possibly even suspect. The interest rates are so low that you would have to have near-perfect credit to be approved for one of their offers. Best 2021 Reviews, the personal finance review site, has been following Badger Advisors, Rockville Advisors, Old Dominion Associates, Sooner Partners, Snowbird Partners, Gulf Street Advisors, Memphis Associates, Safe Path Advisors, Plymouth Associates, Tate Funding, Braidwood Capital, Tiffany Funding, Nickel Advisors, Coral Funding, Neon Funding, Polk Partners, Ladder Advisors (also known as Carina Advisors, Corey Advisors, Pennon Partners, Jayhawk Advisors, Clay Advisors, Colony Associates, and Pine Advisors, etc.).

Editorial Credit: Ollyy

Credit Card Refinancing

Credit card refinancing is a possibly feasible solution for your piling credit card debt. Under credit card refinancing, all of your credit card balances go into one account where a single interest rate is charged. If you have a good enough credit score, then you may be able to qualify for credit card refinancing at low-interest rates. Just like other refinance options, credit card refinancing also entails a loan offer to pay off your debts and improve your financial health. You will then have to focus on the credit card refinancing loan only and no other credit card balance.

Another major advantage of credit card refinancing is that the interest rate will not vary over the lifecycle of the loan. This will simplify your life a lot and make debt servicing much easier since you will know how long it will take for you to pay back your loan. With variable interest rates that you often find in credit cards, you can end up incurring higher interest expenses. But with a fixed interest rate that credit card refinancing purveys, you will not have to face this unwelcome possibility.

With the right kind of credit card refinancing loan, you can possibly save hundreds and even thousands of dollars on interest expenses this way. Of course, you will have to be punctual with your monthly repayments. If the terms and conditions of your credit card refinancing loan are favorable then you may very well embark on the road to financial freedom and get there before you know it.

Is There Any Difference Between Credit Card Refinancing and Debt Consolidation?

From the aforementioned discourse, you may have realized that credit card refinancing is very similar to debt consolidation and that indeed is the case. Both are about settling all debts with one favorable loan so that you can focus on this loan only and enjoy its lenient terms and conditions to rebuild your credit score and gradually work your way towards debt freedom.

Provided the terms and conditions of your credit card refinancing loans are suitable, this financial option represents a viable route for managing and paying off your outstanding liabilities in a better way.

Why Credit Card Refinancing loan May be Better

A credit card refinancing loan may be a better choice than a balance transfer card. The idea of a balance transfer card is to take advantage of the zero APR introductory period that usually lasts from 12 to 18 months. However, there are a few caveats due to which a balance transfer card may not exactly be a good idea.

The zero APR period may look tempting but it still may not be long enough to pay off your entire credit card debt. And that is unfortunate because once the zero APR limit expires then you will have to pay very high interest and you may even incur penalties. Then there is the question of balance transfer fees that can offset the advantages of the zero APR time frame.

Another problem is that the credit limit of the balance transfer credit card may not be big enough to accommodate all of your credit card balances. This is a real possibility since your credit card debt is high to begin with and it may not fit within the credit limit of the balance transfer card.

Then there is the danger of spending with the balance transfer credit card. The inability to control spending and use of credit cards is the very reason why people fall into credit card debt traps in the first place. This possibility is very much open and present with balance transfer cards. Instead of helping you, they may worsen your debt situation since they too are credit cards that are all too easy to misuse. What’s worse, they have exorbitant interest rates.

Such a scenario cannot transpire with a credit card refinancing loan since it is not a credit line – this loan immediately goes towards paying off your credit card balances due to which there is no peril of misuse. Instead of getting another credit card in the shape of a balance transfer card it is much safer to freeze all of your cards and repay your debts.

If you do your research on credit card refinancing then you might find that some people also include balance transfer credit cards under this heading. But due to the drawbacks mentioned above, you should try to steer clear of balance credit cards and instead take out a personal loan for the sole purpose of repaying your credit card debts.

The prime advantage of credit card refinancing is that they can provide you with a low interest rate if you have a good enough credit score.

How to Make Credit Card Refinancing a Success

While credit card refinancing provides good terms and conditions, it is not a magic elixir that will cure all of your financial woes.

To make your credit card refinancing a success, you will have to follow some good money habits and exercise discipline at the same time.

You should try to find extra sources of income. You can think about working overtime at your job if that is possible. If not, you can opt for freelancing gigs and projects. Even if you earn a few hundred dollars through this route each month, it will prove to be of great assistance in helping you become debt-free more quickly.

You should also think up ways of saving on expenses. A major reason why consumers incur enormous debts is that they do not track their spending. This is a habit that you must remedy forthwith if you wish to get out of your financial predicament quickly. No matter how little your expense, make sure you record it somewhere secure. You can utilize apps to record your transactions. Thus, you will know the areas on which your spending is inordinate. You will also be able to compare your spending with your planned budget.

You should get in touch with your financial advisor to find out whether credit card refinancing is right for you.

Loans Bad Credit Online – Badger Advisors Gets Bad Review For Credit Card Refinancing

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