A distressed man examines a credit statement in this image. The following is the text: "Here are a few possible reasons for your credit card being declined: You didn't entirely fill out the application; you have limited credit history; your income is too low; you have too many credit cards. " You'll usually find out right away if you've been authorized for a credit card. When you're turned down, however, it's a whole different story. Credit card companies rarely inform you that your credit card application has been declined on the spot. Instead, within 7 to 10 business days of receiving your application, they send you an adverse action letter with more information regarding the decision. The reason (s) for your credit card application's denial will be detailed in the adverse action letter. If your credit report was involved in the decision, the letter will also include directions on how to obtain a free copy. While you wait for your letter, consider the following reasons why your credit card application might be declined: If you know your credit history, you might be able to figure out which of these factors contributed to your denial.
The amount of money you owe on your loans is excessive
You may find it difficult to take on a new payment if you have too much existing debt. Credit card companies may be reluctant to give you a credit card if your loan balances are large. Paying down your debt balances will help you get approved for a loan.Your credit card debt is out of control
Credit card providers want to know that you're just utilizing a small part of your available credit. You should expect your credit card application to be declined if you're using too much of your available credit, especially if it's maxed out. It's best for your credit score and your potential to get approved for a new credit card if you keep your balances below 30%.Your credit report contains an excessive number of inquiries
Applying for too many credit cards and loans in a short period of time might result in your credit card application being declined, even if the other credit cards are granted. You will not be denied approval if you have a certain quantity of queries. When applying for a new credit card, it's best to keep your credit inquiries to a minimum.Your earnings are insufficient
The amount of income required for a credit card varies depending on the credit card company. If you don't make enough money for that particular credit card or if you don't have a source of income, your credit card application may be declined. Because credit card issuers don't disclose minimum income requirements for their cards, it's up to you to figure out which ones are right for you.You have an excessive number of credit cards
Your credit card application may be refused based on the number of credit cards you already have. There isn't a single number that can be used for all credit card applications. Instead, it varies depending on the credit card company.You have a recent collection or public record that you'd want to share
Collections and public records have less of an impact on your credit as time passes. These, on the other hand, are the most damaging to your credit when they initially appear on your credit report. The credit card company will see these major delinquencies as a sign that you don't have enough money to pay your financial responsibilities.Your most recent misdemeanor was too recent
More than just the type of default on your credit report is taken into account by credit card providers. They also take into account how long it's been since you've been delinquent Recent payment history is more predictive of how you'll handle a new credit obligation than payment history from years ago. A 90-day late payment from six months ago, for example, will affect your chances of getting accepted more than a six-year-old bad entry.Your credit report shows a charge-off
A credit card amount that has been unpaid for six months or longer is considered a charge-off. It's one of the most damaging items on your credit report. A new credit card company will be hesitant to grant you a credit card if you have recently failed to pay off another credit card.- You have a limited credit history or a thin credit file.
- If you've never had credit before or don't have much credit experience, your credit card application may be declined.
- For FICO to calculate a credit score for you, your credit report must have at least one account that has been active in the last six months.
- Because it can't assess your creditworthiness without a credit score, the credit card business is more likely to decline your application.
- If you're new to credit, try getting a secured credit card or a student credit card to start building your credit history.
You are not of legal age to obtain a credit card
Because you are under the legal age to obtain a credit card, your application is likely to be declined if you are under the age of 18. There are a few exceptions to this rule. If you have your own income and have previously been added as an authorized user on your parents' credit card, you might be able to get approved for a credit card.You didn't fill out the application completely
You risk being denied if key information, such as a physical address or date of birth, is missing from your application. The wonderful thing about most online credit card applications is that you won't be able to submit them until they're completely filled out. You won't have to worry about your credit card application being declined because it isn't complete.You haven't spent enough time at your current job
Your credit card application may be declined if you have a shaky job history. Credit card companies prefer applicants who have a track record of repaying their bills. You may have a difficult time being authorized for a credit card if you've been job-hopping and have gone long periods of time without receiving a paycheck.Before you apply for the next job, work on improving your credit
If your application was denied due to something on your credit report, the adverse action letter will provide directions for acquiring a free copy of your credit report. Order a copy of your credit report and check it for any mistakes. If you notice any inaccuracies, report them to the credit bureau. Otherwise, take advantage of this free credit report to restore your credit before applying for a new credit card.Frequently Asked Questions (FAQs)
Is it embarrassing to be turned down for a credit card
Receiving a denial won't have much of an influence on your credit score, if any at all, but whenever you apply for credit, your score may briefly drop a few points.Is there anything I can do if my credit card application has been denied
If you believe the credit card issuer requires more information, you can phone them and ask them to reconsider. For example, it's possible that your income or circumstances were overlooked when you submitted your initial application.When should I apply for another credit card and how long should I wait
At the very least, you should wait six months. Take notice of the reasons for denial given in the adverse action letter throughout this time and attempt to rectify them.