Reasons a Credit Card Application can be Denied

Intro APR Credit Card
Cash Back Credit Card

Even though you may find credit card issuers constantly trying to get you to open a new card, it doesn’t always mean it will be quite that easy to get approved. If you have decided to go for the leap and get a new card it might come as quite an unpleasant surprise to discover yourself being rejected.

If you are in this position, don’t feel bad. It is actually incredibly common to be rejected for a credit card. Finding out exactly why your credit card application was denied isn’t usually difficult at all. In fact, you will probably get an adverse action letter about a week after you send in your application. It is important to know the reason your card was denied. It is also good to be aware of things the credit card company has in mind when they receive your application; those determining factors in whether you get approved or denied for a credit card.

Usually your credit score is one of the leading factors in rejection.

Risk is one of the things which most credit card issuers are primarily concerned about. Sometimes the negative information on your credit report could have ended up there due to an unnoticed error. If your credit score is the reason for the rejection, the first thing to do is check your credit report and resolve the error. If there is no error and your poor credit score is accurate then you must take a different direction.

Certain credit cards will approve people with poor credit, but they certainly won’t be as attractive as the credit card you wanted. Getting a secure credit card to rebuild your credit might be the way to go, and then you can try again for an unsecured card.

If you don’t have a credit history or you are too young that is another top reason for being denial.

This stems back into the company’s concern about risk, and people with no history are unpredictable. They may be good cardholders, but they just as likely may not be. If you haven’t had an active account in the past half a year you won’t have any credit history, and if you are under 18 you will also have difficulty getting approved.

Income and occupation are also things most credit card issuers pay careful attention to. If your income is too little you may not get approved. Of course, income limits vary depending on the individual card issuer. You will have to try to gauge whether a credit card fits into your level of income or not. Credit card issuers also like to see that you have been working at your job for a certain period of time. Going from job to job is never a good sign to companies and banks, because they will see that you have an inconsistent income and habits.


Intro APR Credit Card
Cash Back Credit Card

Categories: Application Denied