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U R @: Education Center : Applying for Credit Cards Online : Lower Credit Card Approval Rates Ahead
LOWER CREDIT CARD APPROVAL RATES AHEAD
According to a recent article in the Wall Street Journal, getting approved for a new credit card has become more difficult in recent months and may get more difficult in the months ahead. In the article “Credit Cards Play Hard to Get,” Jane J. Kim cites a number of recent developments in the banking world that will impact the ease of obtaining credit, including a significant 20% decline in credit card approval rates.
Of the various points discussed, one of the most troubling for savvy users of 0% APR offers is that companies such as J.P. Morgan Chase will be raising fees on balance transfers and cutting back on offers to people who bounce from one 0% APR credit card to another.
Other banks, including Citigroup and Bank of America, have increased their credit quality requirements, making it more difficult to obtain a new card from them. And, whereas credit card companies formerly relied on one credit report per applicant, many companies will now be reviewing consumer credit reports from multiple bureaus to screen applicants.
Consumers with high credit scores and low debt to income ratios who maintain relatively low credit card balances should be unaffected by the recent changes in the approval process. However, consumers with borderline credit, high credit card balances or limited credit histories may find themselves with lower credit limits, higher interest rates, and few, if any, option to transfer balances to 0% APR credit cards.
One strategy, suggested by John Ullzheimer of Credit.com, is to maintain multiple credit card accounts with high credit limits in case credit becomes less available. Another strategy we suggest is to lock in high interest credit cards into a 0% APR via balance transfers while such offers are still available.
You can learn more about 0% APR credit cards and balance transfer credit cards in their respective sections of SmartCreditChoices.com.
Read more related articles: Applying for Credit Cards Online | 
