02-28-2006, 04:38 AM
Most of the information they actually use to determine what to approve you for has nothing to do with the income you say you make. They get a credit score on you and that pretty much tells them everything they need to know. Why they ask you questions such as income is beyond me. In other words, you weren't approved for $10k after saying you made $15,000 a year. You were approved for $10k after they got your credit score and discovered you have had previous credit and have not been a roach.
Another factor that undoubtedly worked in your favour was your lack of other credit cards. Most companies treat a customer's existing available credit against them; having 5 or 6 $5000 cards worries them, because they see how deeply in debt you could get and don't want to be 7th in line when trying to collect. The credit card companies certainly want you in debt, but not too much. You declaring bankrupcy certainly doesn't help their bottom line.
Even if you don't want a credit card with a big limit, having a good credit rating can be a very nice thing. Alot of people getting cell phones and credit cards then racking up and leaving huge bills don't realize that cell companies and credit card companies report these things to big credit bureaus. So if you rack up that $200 cell phone bill and forget about it, good luck getting a loan for a car or house down the road.
I share your bewilderment with these companies though. My grandmother keeps getting mail urging her to get these pre-approved credit cards with outrageous limites. She's 80 years old, doesn't drive, rarely leaves the house, and hasn't worked in decades.
I like using my mosaik master card because I get 1/2 % cash back, along with some extra bonuses, like extra warranty on most things, and some extra travel insurance and such. It's the basic version of the card, no annual fee, though the interest rate is high. I simply treat my credit card as another bill to be paid every month. So long as I pay it off every month, I get all my little extras free of charge. Just by putting my tuition on the card instead of paying cash, I get back about $25. Obviously nothing to get excited over, but it adds up.
gekko
Another factor that undoubtedly worked in your favour was your lack of other credit cards. Most companies treat a customer's existing available credit against them; having 5 or 6 $5000 cards worries them, because they see how deeply in debt you could get and don't want to be 7th in line when trying to collect. The credit card companies certainly want you in debt, but not too much. You declaring bankrupcy certainly doesn't help their bottom line.
Even if you don't want a credit card with a big limit, having a good credit rating can be a very nice thing. Alot of people getting cell phones and credit cards then racking up and leaving huge bills don't realize that cell companies and credit card companies report these things to big credit bureaus. So if you rack up that $200 cell phone bill and forget about it, good luck getting a loan for a car or house down the road.
I share your bewilderment with these companies though. My grandmother keeps getting mail urging her to get these pre-approved credit cards with outrageous limites. She's 80 years old, doesn't drive, rarely leaves the house, and hasn't worked in decades.
I like using my mosaik master card because I get 1/2 % cash back, along with some extra bonuses, like extra warranty on most things, and some extra travel insurance and such. It's the basic version of the card, no annual fee, though the interest rate is high. I simply treat my credit card as another bill to be paid every month. So long as I pay it off every month, I get all my little extras free of charge. Just by putting my tuition on the card instead of paying cash, I get back about $25. Obviously nothing to get excited over, but it adds up.
gekko
"Life is sacred and you are not its steward. You have stewardship over it but you don't own it. You're making a choice to go through this, it's not just happening to you. You're inviting it, and in some ways delighting in it. It's not accidental or coincidental. You're choosing it. You have to realize you've made choices."
-Michael Ventura, "Letters@3AM"
-Michael Ventura, "Letters@3AM"