Top 10 Reasons Your Credit Card Application Is Getting Denied

Overview

Whenever a credit card application is denied, you always keep wondering why? Why did the application get denied? Seldom do you get to know the exact reason for the denial of your card application? Instead, all the information you get is a letter, mentioning the denial of your application.

Here are some possible reasons why your credit card application could have been denied

  1. You have high loan balances: Credit card issuers hesitate to issue a credit if you have not been reducing your loan balances. When your loan due balances are high, credit card companies have the fear that you may not pay those balances too.
  2. You have high balances on your existing credit card: If you have high balances on your existing credit cards, then your new application can be rejected. The credit card companies do not like it when you use too much out of your card. They would like to see you use only part of it.
  3. There are too many loans/credit inquiries on your credit report: If you have lately applied for too many credit cards or loans, then there are all possibilities that your new application will be denied. It does not matter whether your previous applications were honoured or not. So, keep your inquiries low.
  4. Your income is too low: Every credit card issuer defines a minimum limit of income. It is possible that your current income does not stand up to those criteria. Many times, the credit card issuers do not declare the minimum income required.
  5. You already have too many credit cards: How many credit cards do you currently hold? The number of credit cards you currently hold influences the result to any of your new credit card applications. No credit card issuer declares as to how many credit cards you can possess. It varies from company to company.
  6. You have a public record or a recent collection: Collections if any, affect your credit scores. This affects your application to any new card. These delinquencies show that you do not have sufficient income to meet your repayment.
  7. You have very limited credit history: Limited credit experience could also result in the denial of credit card application.
    If you have not had any credit account active for the past six months, if could be difficult for you to get a credit score.
  8. You are too young to get a credit card: You need to be at least 18 years old to get a card issued in your name.
  9. You have filled the application form incorrectly: Any missing vital information can cause a denial of your application for the credit card. Missing information is equivalent to risk being denied. Hence, ensure that you fill in all required information to complete correctness.
  10. Your tenure in the current job has been very less: Being consistent on a job, counts on getting a credit card approved. If you have had too many job changes and instabilities, it can result in your credit being denied.

Keep in mind and always ensure to keep your credit records healthy. A fit and fine credit history arises out of prompt repayment of credits and aligning your income to your expenditure. Fix a goal of 800 plus credit score to ensure this fitness.

Updated: January 19, 2017 — 4:20 pm

1 Comment

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  1. Well said, Good info. There is no doubt that for a new business setup, most of the people take business loan but some people’s loan application is rejected by the banks and lots of people don’t know what the reasons behind are. But thanks for the post, it’s really informative for those people which are need business loan.

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