Industry standards for issuing new credit cards to consumers is getting tougher by the minute and applicants are being scrutinized more than ever. Now is the time for consumers to focus their efforts on cleaning up and improving their credit scores to the highest rank possible as those with lower scores are finding it increasing difficult to secure new lines of credit.
Until recently a 600 Fico credit score was considered fair and those individuals with that rank were able to secure new, bank issued credit cards. However, with the credit crunch taking a bite out of our economic liquidity, only those with 700 or higher are going be considered for new lines of credit.
Other factors contributing to whether or not someone will be approved for a credit card is something called “Behavior-based risk assessments”. Basically the spending habits and patterns of loan defaulters are held up as the negative model for new card applicants. Those closer your behavior is to the defaulters, the less risk the card issues want to take on you and the greater chance of having your application denied.
Consumers worried about their dwindling line of credit can take action and focus their energies on raising their credit scores. If you have a low APR credit card and enough limit on there, consolidate all your debt into one place. Stop adding new debt to the equation and concentrate your efforts on paying off the existing mass on time, pay more than the minimum and focus in on lowering your balance all together.