Credit Tips: What is the approval criteria for applying for credit?
Written by carnold
Posted On: March 1, 2005
Author: archive
Joined: 23 Jul 2004
Posts: 5007
Posted: Thu Jan 13, 2005 3:21 pm
Post subject: Debt ratios/Credit scoring/etc…
Jonathan
Date: 5/10/2000 2:49 pm CDT
Great website by the way…
i need to get a low fixed rate card to transfer about $15,000 from my
one revolving credit card. but am not sure who has more lenient “debt
ratio” guidelines. am concerned about getting turned down for having too
much debt, which is a vicious circle. I also don’t want to just apply
with any company as the “inquiries” on my credit report will lower my
Fair Isaac score, so I need to research the companies before actually
applying.
Any idea how I can find out the approval criteria of each bank?
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Author: archive
Joined: 23 Jul 2004
Posts: 5007
Posted: Thu Jan 13, 2005 3:21 pm
Board Monitor
Date: 5/10/2000 3:26 pm CDT
Thanks for your recent inquiry. Since each bank has different methods of rating applicants, I would suggest contacting the banks that you are interested in and explaining to them your situation. Ask how debt ratios figure into their screening process. As far as I know…this is the only way to avoid “unfruitful inquiries” on your report.
You can also find an informative article regarding credit scoring by visiting the Federal Trade Commission’s website at..
http://www.ftc.gov/bcp/conline/pubs/credit/scoring.htm
Hope this helps!
Regards,
Jackie Hughes
Board Monitor
CardRatings.org
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Author: archive
Joined: 23 Jul 2004
Posts: 5007
Posted: Thu Jan 13, 2005 3:22 pm
Eugene Skorodinsky
Date: 5/10/2000 11:20 pm CDT
Board Monitor wrote:
> …
> Ask how debt ratios figure into their screening process.
> …
Well, good luck. When I asked different banks’ credit departments about their certain approval criteria, I got the same answer from all of them: “Apply first, and then within … days you will get a response from us saying if you’ve been approved. If the application was denied, the reasons will be explained to you in the letter”. I guess in politically incorrect everyday English that means “We won’t tell you because you might ’stretch’ your situation to meet out requirements”.
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Curtis Arnold, a nationally recognized consumer educator and advocate, has been educating consumers about credit cards since 1998. Curtis is the author of "How You Can Profit from Credit Cards: Using Credit to Improve Your Financial Life and Bottom Line" (FT Press, 2008). He is also the co-author of the upcoming Complete Idiot's Guide to Person-to-Person Lending (Alpha Books/Pengiun Group USA, April 2009), a contribitor to The Ultimate Allowance (InnerWealth Publishing, 2008) and is extensively featured in 42 RulesTM for Driving Success With Books (Super Star Press, January 2009).
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