Credit Fraud Alerts

Post date: 2008-02-28 03:21:48

The Most Curious Reason for Credit Card Rejection

Almost every second credit cardholder has at least heard of such a service as a fraud alert which is put up as a protective measure against fraudulent activity on one's credit account. As a rule, the fraud alert is set in case you, as a cardholder, notice some suspicious activity on your account or receive a credit card statement reflecting transactions you did not make.

However, not all customers know about this rule and rush to put fraud/security alert as a preemptive measure, which means they want to protect themselves, should any threat to their credit appear. It is a mistake to put alert for a preemptive reason and the case below proves that.

We got a letter from an account holder who says he has been trapped by his own doing.

Kevin Aponte, a Chase bank customer with high credit scores and favorable credit rating, set up security alert on his account as soon as he learnt about this option. The example of his co worker, who fells victim of ID theft and credit fraud, motivated Kevin to resort to this measure just in case.

What happened? Each time Kevin tried to apply for a credit card offer, he was rejected. Getting instant approval was out of the question at all. It isn't what a responsible and successful credit user should be eligible for, is it?

Let us clear up the matter. When you put up a fraud alert, your lender takes it as your determination to close access to your account for everyone, as you suspect someone got your credit and personal data and is going to use it for fraudulent purposes.

Closing access to the credit account implies that you, too, will be denied credit until you request the credit bureau to lift it up.

So, when Kevin made his next credit card application, he faced the protective steps of his lender which was to verify his identity before approving him. The catch was in the questions Kevin couldn't answer without speaking to the live operator at the credit bureau. And the live operator was not accessible.

What we suggest in your case is that you should request your credit report from the credit bureau and do it in writing. Providing the bureau with all the appropriate documentation proving that it is you, and not an ID thief, is asking for the information, you will be sent it and will be able to answer the questions necessary to process your application for a credit card offer.

However, despite the strong protection power, there is a big drawback of slowing the application processing because of the fraud alert on. It frustrates you in case you are in urgent need of credit, especially when time determines what interest you pay.

So, be a man of foresight. Do not put the security alert until you know for sure or at least suspect that someone is intending to use your credit account for fraudulent activity.