Do You Know Why Your Credit Card Application was Denied?
When you apply for a credit card, you hope to receive an immediate approval. If this happens, you know it won’t be long before you can start using your credit card.
Unfortunately, there is no guarantee of an approval. If your application is denied, it’s important to do two things:
- Learn more about what went wrong
- Continue your search
There are many reasons an issuer may deny a credit card application, with these seven among the most common :
1. High Loan Balances
Do you have several high loan balances? If so, a credit card issuer may have concerns about your willingness to pay them in the future. By reducing loan balances before applying for a credit card, you increase your likelihood of an approval.
2. Low Income
It doesn’t matter if you’re applying for a credit card or loan, the creditor always looks at your income. This gives them a clear overview of your debt to income ratio, which allows them to make a final decision on your application.
Tip: list all income sources on your application.
3. Too Many Credit Cards
There is a big difference between someone who is applying for their first credit card and someone who already has a handful of these in their wallet.
If you have too many credit cards, it could stop you from receiving an approval the next time around.
4. You Have a Collection on Your Credit Report
Credit card issuers never want to see that an account has been sent to collections. This means you were late making a payment, and didn’t take action to make things right.
5. Limited or No Credit History
If you have a limited credit history or none at all, credit card issuers may be concerned about approving your application. The best way to protect against this is to establish at least one account before applying for a credit card.
Tip: there are credit card offers designed for people with limited or no credit. If you fit this mold, start with one of these offers.
6. Lack of Employment, Short Employment History
If you don’t have a job, you shouldn’t expect to receive an approval. Just the same, if you have a short employment history, such as only a couple months at your current position, it may work against you.
As the length of your employment grows, so does the likelihood of an approval.
7. Incomplete Application
It sounds silly, but it’s easy to make a mistake when completing a credit card application.
You’re asked for a lot of important information, such as: full name, date of birth, physical address, and social security number. Neglecting to supply a key piece of information could result in a denial.
These are seven of the most common reasons for a credit card application denial. With these points in mind, you can take the steps necessary to improve your chance of an approval in the future.
11 thoughts on “Do You Know Why Your Credit Card Application was Denied?”
I need help to fix my credit card please
Thanks and have a happy holiday with your family God bless you
Try open sky it’s a prepaid credit card and build your credit then you get your deposit back I put $200 on mine
YES! My credit was in the 400s after I had an over 800 FICO, my entire married life, and prior to marriage.
When I left my ex husband, ( who had no credit when I met him). He maxed put all cards we had together. Knowing all my info. He ordered ANY CREDIT HE COULD, in my name. It almost destroyed me. You can’t rent an apartment, so I had to rent a room. I couldn’t even get a job, when I drove 3000 miles, to start over, in California.
Because all decent jobs, check your credit. It was horrible.
Opensky was the only credit card that would even give me a chance with a secured card!
Within 6 months, I disputed all credit my ex husband had , illegally taken out in my name. ( you must be vigilant, write to all three credit bureaus, via certified mail), and Opensky reports to all credit bureaus. My credit score is now in the low 700s. At least I was able to get a job and my own apartment. Thanks to Opensky.
I have alot of unauthorized inquiries. Also,I went through a rough patch due to paying for 2 funerals 15 days apart. I was extremely behind but I’m trying to get it all straightened out. But,I keep getting denied.
My daughter passed away and I fell behind my payment now that I’m back on track I will pay off both cards with the help of a second chance
Ever since my father passed I have had no one to guide me. My mama passed away when I was only 4
I have trouble accessing credit due to a past due obligation that I have not been able to satisfy due to severe mental illnesses that make working impossible. I have filed a claim for financial assistance through my states Social Security Association and hope to hear a decision from them soon. I was hoping to gain a line of credit to help me pay for medical expenses and living costs until I receive word from the SSA regarding much needed monetary assistance. With the collections on my credit report because I am unable to work has ruined any
Im not sure if you have any health coverage at all so im going to provide two recommendations: You may have access to credit through your health insurer (if you have one) and not know it. My health insurance company provides members with a card by “Paytient” with a $750 credit limit. There is no credit check and you get to choose your monthly payment amount once you use it to make a purchase. It can be used for anything health related including copays, contact lenses or glasses, deductibles, etc. Check with your health plan. If you do not have a health plan, there are several plans from healthcare.gov that end up costing $0 monthly because of tax subsidies you probably qualify for. It’s worth looking into because you should not have to drown in medical debt with all of the programs now available. If are are unsure how to navigate the process, search for an insurance professional who specializes in marketplace health plans.They will be able to guide you from explaining the different available plans, helping you to qualify and apply, and helping you to understand how to use the plan you choose. Also, a new law was passed that prevents medically related collections from being factored into uour credit score and not allowed to be considered when applying for credit. Uou may need to notify the credit bureaus and tell them that the collection accounts being reported are medical in nature and ask that your report be updated to correctly reflect that. Doing this may put an end to the denials. Please note that without more information, this is advice that may or may not be applicable to your situation specifically. I am providing this answer based on my own personal experience in hopes that it may help you to over come the barriers you have explained. Good luck to you!
How’s the site and cards for rebuilding credit also easy approval odds and for once funds the account for you rather all the deposits
I am 63 and ready to manage my money in a successful way.