Thursday, 17 January 2013

When can telling the bank what you really want get you a denial?

This is an extremely interesting development revealed by Credit Card Builders. CreditCard Builders is a great source for interesting and cutting edge information about obtaining credit. Because they deal with such a high volume of applications they really see what's going on out there - what the trends are. In other words, they’ve got their "ear to the ground"

Here is a truly interesting story. A bank sends out a pre-approval notice that says, you're approved for $40,000. Nothing unusual there - however - they also have three optional boxes that can be checked when you send in your acceptance. One box said "get your funds transferred into your bank account immediately", another box said "please approve me for the highest amount of credit possible".

Basically, they make it look like these are completely acceptable boxes to check if you'd like - after all, you're already APPROVED. Beware - it has been the experience of our founder that the truth is a bit trickier. In actual fact, is appears that these boxes are hidden triggers being used by the bank to screenout "undesirables" into their credit system. Their logic is, 'if the person is that hard up for money, we don't want to lend them any money".

Obviously, the advice here is: don't check any such boxes when accepting pre-approved offers. You can always ask for a credit increase later. Don't risk your approval by checking any "too good to be true" boxes that accompany your approval.

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