What happens after you fill out an application for a credit card or a loan?

Answer:

One-third, or 1 out of every 3 applicants

Questions:

• If you were turned down for a credit card, would you try again somewhere else or stop applying?
• Would you rather be approved for less credit than you asked for, or be turned down outright? Why?
• Do you think being turned down for credit once changes how someone feels about borrowing later?

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the Numbers: (Federal Reserve)

“Thirty-three percent of adults applied for any type of credit … Among those who applied, one-third were either denied credit or approved for less credit than they requested.” Most adults still expect to be approved: “Sixty-one percent of adults … felt very confident their credit card application would be approved.”

About the Author

Dave Martin

Dave joins NGPF with 15 years of teaching experience in math and computer science. After joining the New York City Teaching Fellows program and earning a Master's degree in Education from Pace University, his teaching career has taken him to New York, New Jersey and a summer in the north of Ghana. Dave firmly believes that financial literacy is vital to creating well-rounded students that are prepared for a complex and highly competitive world. During what free time two young daughters will allow, Dave enjoys video games, Dungeons & Dragons, cooking, gardening, and taking naps.

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