Bank credit card offers are not assured

Because an Arizona resident receives an application for a credit card from his or her bank does not mean that he or she will be approved for the card. The mailings are a marketing tool, and the recipients are pre-screened through the bank's customer database.

Once a customer applies for a credit card or a loan, the bank does a thorough review of the customer's credit history. This review does show up as a soft hit to the credit score. It is minor, however, compared to other factors comprising the credit rating.

The major components of a credit score are the payment records and the debit-to-credit ratio. These two items are 65 percent of the data feeding the score. The length of credit history is worth 15 percent, with a longer history of successful credit payments being positive to the score. Types of credit used and hard inquiries are weighted as 10 percent input to the score. If you want to stop receiving offers from the bank, contact the Federal Trade Commission. A bank customer cannot reverse the bank's denial of an application, but the customer can focus on reducing their debt level that will result in a positive change to the credit rating.

When Arizona residents face financial challenges, they may have many questions about the options they have and how the choices that they make could influence their credit score. An attorney with experience in debt relief and similar matters may be able to help them determine the best course of action and explain the impact and duration of the action on their long-term score. An attorney may also be able to help them attain a fresh start financially.

Source: Fox Business, "Pre-screened offers don't guarantee card approval", Erica Sandberg, September 17, 2013

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