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With millions of assets outstanding, many credit card companies are tightening their belts and refusing to extend credit to new customers as well as reducing the line of credit that many of their best customers already have. This is all due to the economic downturn that the country is currently facing, and with more and more people defaulting on their credit card accounts or filing for bankruptcy protection, it does not look as if some of these lenders will open their doors to new borrowers anytime soon.
Luckily, there are a select group of card issuers who are untouched somehow by the current recession, and they do actively seek out new cardholders. If you have been turned down by the big guys, perhaps it is time that you start looking for your new credit card elsewhere. Even those borrowers with damaged credit can apply for these types of credit cards that seem to be from recession proof credit card companies.
Applying For Your Credit Card
Although these special lenders offer the best chances for approval during the recession, you still want to make some preparations before applying. For instance, you should take a look at your credit report to see if everything about your financial situation is being accurately reported to the credit bureaus. If you see an item on your credit report that you do not recognize or you do not believe is your responsibility, then file a timely dispute. Having the best credit score that you can will not only improve your chances to get the card you need, it can also make the card cost you less in terms of interest because lenders calculate the interest rate they will charge for your credit card based on your FICO credit score.
When applying for your credit card, be sure to list an accurate accounting of your income. Credit card issuers will use your income as a means to determine the amount of credit that they will extend to you. If you are married, and you are applying alongside your spouse for a joint credit card account, you can and should list both incomes (assuming both of you are working) on the application. You can also include income from child support, alimony, and court ordered maintenance if you choose to do so and wish this income to be considered in deciding your credit line.
Online Credit Card Issuers
Most of the lenders who offer these types of cards to borrowers are doing the bulk of their business online. With an online website to offer their financial products, lenders of this nature offer you the ease of accessing a paperless application and also offer a nearly instantaneous decision as to whether you are approved or not. Doing business online allows the issuers of these credit cards to typically offer lower rates of interest as compared to other lending institutions because they have lower overhead in most cases as compared to the number of customers that they service. |
