Responsible people with excellent credit scores are often shocked after applying for a new credit card—and getting rejected. It’s more common than you think, so it pays to learn why a good credit score may not be enough.
It’s bound to happen to all of us at one time or another—you go to apply for a new credit card (or an auto loan, mortgage, or any other line of credit) and, out of nowhere, they turn you down.
You’re shocked. Angry. And—if you know that you have a fairly good credit score—flabbergasted.
“But I have good credit,” you shout. “How can you reject my application?”
A good credit score isn’t everything
If you are a regular reader of this blog or others like it, you probably have a (healthy) obsession with your finances — including your credit health. You check your credit reports at least once a year and perhaps use a free monitoring tool to track your credit score. (Learn how to check your credit score for free now if you haven’t recently.)
We’ve been taught to get this number into the 700s or beyond so that we always qualify for the best interest rates.
Although it’s true that it’s important to have a good credit score, your score is just one of many factors a bank will use in deciding to extend you credit…..Read More>>