[I]f you have been told you have excellent credit or your credit score is in the upper 700s or even 800, you may think the sky’s the limit on applications. You get a wake-up call when a creditor tells you that your application has been rejected. How could this happen to someone with excellent credit? There are several reasons.
When Excellent is Only Good
Every creditor has a different scale for what makes up good or excellent credit. What may be called excellent credit for one creditor may only be good for another. They may approve applicants with scores above 800 while another would accept you at 780.
Make sure you read the fine print and try to apply only for credit you know you’re likely to get approved for. Of course, one denial won’t hurt your credit as much as it will hurt your pride, but you don’t want to apply for just anything.
Too Much Debt
While you may be managing your debt and even have an abundance of available credit, it could still result in a rejection if you don’t have the income to support it. Lenders want to see your credit payments below a certain percentage of your income, and if you go above that, you might be in trouble when it comes to getting approved for new debt.
Too many credit cards with high credit limits can cause lenders to worry. What would happen if you lost your job or had some unforeseen circumstance occur? Would you still be able to handle the amount of debt you have?
It is possible to rebuild your credit after having an account charged off, especially if it’s been two years or longer. However, that account is still on your credit history, and some lenders won’t look past it. They will refuse to extend credit to someone with any negative information. If this is the case, you’ll have to wait until it falls off before applying with this lender.
While you’ll likely get approved for most applications, be aware that excellent credit isn’t a guaranteed approval.
Credit often becomes even more important or a bigger hindrance around the holidays. It can either make your holidays better because you can spend more, or it can limit how much you have to spend if you have bad credit or none at all. Here are some ways to make sure your credit is ready […]
[R]etailers look at the holiday season as their time to make money and make up for any struggles from the rest of the year. They work to come up with all kinds of ways to bring in new business during this season. However, not all marketing ploys and gimmicks are good for you or for […]
[S]tore credit cards are nice for a lot of users. They often come with special perks and rewards. You may get an added discount or special coupons on sales. You may gain points that can be used towards purchases. However, these benefits only work as long as your store is open. What happens to your […]
[B]usiness credit cards are a great option for people who own a small business. It allows them to use credit to pay for purchases or expenses when they have limited or delayed cash flow. It also makes it easier to keep personal and business expenses separate. You should know that if your personal credit history […]
[I]f you have been told you have excellent credit or your credit score is in the upper 700s or even 800, you may think the sky’s the limit on applications. You get a wake-up call when a creditor tells you that your application has been rejected. How could this happen to someone with excellent credit? […]
If you’re like most people, you get into trouble with your credit because you don’t have enough money to pay the bills on time. You may live too close to the max of your budget or have too many unexpected expenses come up. If this sounds like you, then you’ll want to look for ways […]
[Y]ou don’t have much money and any you do have goes towards paying your college expenses. You may wonder why a credit score even matters at this stage of your life. If you haven’t given it much thought before, you need to become aware of it now. Your Future Depends On It Your credit rating […]