Are you in the process of searching for the perfect credit card? Do you have some concerns about the application process? Are you worried that you will receive a denial?
There is no way of knowing for sure if you will be approved for a credit card, but you can improve your odds by understanding the eligibility requirements before applying.
For example, if you have average or poor credit, don’t apply for a credit card that requires an excellent score.
Since you want to avoid a denial at all costs, it’s a good idea to learn why this could happen. Here are some of the top reasons for a credit card denial:
Your Current Loan Balances are Too High
Are you serious about paying down your loan balances, or have these been lingering for quite some time?
Credit card companies are more likely to deny your application if your loan balances are too high, as they have reason to believe you may not pay your balance when it comes due.
Tip: improve your odds of an approval by reducing your loan balances before submitting an application.
Your Income is Too Low
This doesn’t come into play with every credit card offer, but it could hold you back from receiving an approval.
Depending on the credit card, there may be an income minimum in place. For example, the issuer may require an annual income of $100k to qualify. So, if your income is less than this, you are better off searching for a different offer.
You Already Have Too Many Credit Cards
If you don’t have any credit cards in your name, it can increase the odds of an approval.
Conversely, if you already have a handful of credit cards, it could lead to a denial. There is no “set” number that applies, but a credit card issuer may not feel comfortable approving your application if you’re already carrying several cards.
You Have a Collection Record on Your Credit Report
At some point in your life, an account may have been sent to collections. Not only can this hurt your credit score, but it can also harm your ability to receive a credit card approval.
In addition to the type of delinquency, the issuer will also consider when this occurred and the current state of your account. A collection record from two years ago, which has been resolved, is better than an open record.
You Have No Credit History
It may not be fair (at least in your mind), but a lack of credit history can harm your ability to obtain a credit card.
This isn’t something you’ve done wrong, but instead a way for credit card companies to protect themselves. The best thing you can do is apply for an offer designed for first-time credit card applicants.
Final Thoughts
It doesn’t matter if you have a perfect credit score or are lagging behind, it’s always good to have a clear understanding of how credit card application decisions are made.
Have you been denied for a credit card in the past? What was the reason? How did you remedy the problem? Share your personal experience in the comment section below.
I will be honest because this is the first site that I found that gives you reasons why people get turn down for credit cards . I am 63 years old and I know credit. Good and bad .Its amazing how fast people can mess up their credit history. Personal problems,job problems, and some mental issues that can be caused by the 2 issues that were previously mentioned and just by anything else that just might happen in your life. Thanks again for this fantastic article about credit cards.
my score was too low I guess but I got bad credit when I was 18 yrs old and I just turned 50 and it’s taken this long to finally all get dropped off me and now I get to start all over but smarter then before I sure hope so …lol..
Omg your comment is exactly me. I screwed up my credit at 18 and just now im 46 and i was just able to get a few credit cards but of course starting out with low limits but thats ok, im sure after all these years they just want to make sure im gonna pay them and on time. Which i assure them im way older, way wiser, and dang sure dont my credit messed up again after all these years and im finally moving on up. Me and my husband want to buy a house soon so we NEED OUR CREDIT. My husband was the same way too messed up credit so it has been rough on us all these years paying cash for EVERYTHING all of our cars were cash cars because of credit. But were finally getting there. My husbands credit is getting fixed as we just bought a Harley Davidson Streetglide. Now dont get me wrong the interest is high but never a late payment and were gonna get it refinanced through his bank soon. We just paid our 6th month. So long story short our credit is finally getting better and were gonna soon buy a house. Sorry for the long post.
Good for you Amy!<3 You guys both deserve it. Way to work it. Being on the right track, regardless of how long it took you to get there, is always applaudible. I'm happy for you and your husband both. Congrats on the new bike and best of luck on the hunt for your new home
I didn’t have any credit bad or good and then Mediacom last year they came and hooked up my internet without me even knowing about it and then didn’t tell me what I was paying for or anything and then when I went to cancel it because I was never getting ahead they were supposed to send a box to so I can send back there equipment and they never sent it and the box is still sitting by the TV and then they sent me to collections but they’re a shitty company every week I had to have them come in and fix my internet that’s why I canceled and I called them to cancel so I can send back here