Why is it that when you apply for a credit card they ask if you are a homeowner?

Question

i recently applied for a store credit card and they asked me if i was a homeowner. I said yes and told them that I earned about 24,000 a year and they declined my application. my total debt is about $200 and I always give my payments online. why did they decline me?

Answer 1

happend to me .I hate the credit rating system. I had to put a 450 dollar deposit on my cell phone contract for having no credit history and 3 years later my credit was bad and I didn't have to put down any amount    But I would'nt doubt that the bank just figured if your making only 25000 per year and your paying for a house then you probably cant afford to pay any more bills.      It would also depend how long you've been working at your current job.

Answer 2

Probably because of your credit standing. I am willing to bet the credit cards you do have are probably maxed out....or have late payments, or lack of credit history. You will get a notice in the mail that cites the reason why you got declined.

Being a homeowner is a huge plus in applying for credit. Homeowners tend to have there finances in order, compared to renters. Also, a home is an asset that the credit card company can lien if you default on the account. I used to be in the debt selling/purchasing business, and when credit card companies sell off there bad debt portfolios they sell them in categories. One of those categories is 'home owners,' and that type of debt is the most expensive to buy, next to buying judgments.  

Answer 3

Maybe you have bad credit! It does not matter how much debt you have, if it is all in collections etc & your scores are bad, you will be declined. Maybe you asked to too much credit. It could be a meriad of things.

Answer 4

Because they assume as a homeowner that you already have a huge debt, which a mortgage is. Not to mention the monthly liabilities that come with owning a home.

They know that if things get tough for you that you'll let the credit card payments slide before your mortgage. Their not up for the competition.