Approved and Rejected Applications

Why Was My Credit Card Application Denied?

You are very excited! You have applied for a credit card and you are now ready to charge that vintage bag to your much awaited card. All the while, you have assumed that it will be delivered after weeks of application. But your impatience looms after several weeks; and upon checking with the company, you finally heard what you least expected: “I’m sorry, your credit card application has been denied”.

You are left with questions hanging on your mind but no specific reasons are given by the credit issuer. This so familiar circumstance is being encountered by many credit card applicants. If you’re still wondering why you are rejected, below is a list of the most common reasons:

  • Approved and Rejected ApplicationsInsufficient information supplied. The application form you are filling in is very vital and will be used as the main reference; it is highly advisable that you carefully check on your forms before submitting them. Apart from this, required documents such as identification cards and financial records must be complete. Missing and incorrect information will likely be a basis for your rejection.
  • Financial status. Income requirements vary among different card companies. There are those who only require a minimum but there are companies who even check on the borrower’s work history to justify that they can consistently pay for their loans. If you have a very low income or an unstable job, there will be a great possibility that you will be denied.  
  • Bad credit report. If your financial record states that you haven’t paid for your long standing loans or if your loan balances are too high, your chances of being approved is very slim. Pay for your outstanding debts first before applying to clear out your credit balances.
  • Several credit cards. Over access to too many credit companies will make lenders think if you are still capable of paying another one. Always remember that credit companies offering multiple cards will not approve individuals who have already been using one of their cards. Furthermore, applying for several cards will make you look over stretchy who badly needs an overdraft account to cover for your debts. 
  • Charge-off. This is a credit card balance that is not paid for six months or more. This will pose a negative picture on your credit report since this is a declaration that your existing card company cannot collect payments from you. This will thus be a factor for your rejection.
  • Very limited borrowing experience. There is a risk of non-acceptance if you haven’t used any lending facilities before. Not having a credit score will not prove your history of managing your debt and will not assure the credit companies that you are responsible on paying off bills and debts on time.  

It’s really frustrating to have your card application disapproved especially if you have spent time comparing and finding the best credit card for you. If you have recently been rejected considering your good credit standing, it will be timely to check your file to know what has affected your unsuccessful application.