Main Reasons Why Many Credit Card Application is Turned Down?

Last Revised on December 19, 2010

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If you are wondering why credit card company did not approve your applications, you are not alone. There are so many people who are facing the same problem of having denied credit card several times. But only few seem to know the reason why they are rejected; so we will do the explanation of the reasons why your credit card was turn down. Understanding these causative factors and working on them to correct the mistakes might make increase your eligibility and get approved fast in the future.

Top 5 Reasons for Credit Card Application Getting Denied and Not Approved

1. Age: first and foremost eligibility for most financial related applications is the age, so you have to make certain that you are old enough to apply for a credit card. You have to be at least 18 years old to get a credit card; otherwise it’s an automatic rejection for you. A lot of teenagers get confused about their eligibility because some of their friends carry credits card; but it is either because their friend’s parents cosigned or on parents name.

2. No credit history: Of course, if you have a bad credit you may be denied credit card by companies which offer competitive rates. But if you don’t have any credit history, that’s also bad; it gives you no credit score. Lenders and creditors want to make sure you have borrowing experience in the past, which will ensure you know the responsibility that comes with credit card usage. It is proving that you have a track record of paying back money on time.

3. Too many credit cards: Yes, both having no credit history as well as owning too many credit cards can make the companies deny you a new credit card. When you have so many credit cards, it is considered as an indicator that you may get into trouble paying back on a timely manner later on. Besides having too many credit cards, especially if you have high account balances on them, becomes a red flag since it is mostly looked up as an irresponsible financial behavior.

4. Income too low: Even though credit card issuers don’t state the specific income requirements, you will probably be turned down if your income is very low. Credits cards are meant to be used by consumers who can make payments on a monthly basis, for which you have to be making enough money to pay account balances on time. Even having a small steady stream of income on a weekly basis can prevent credit card from getting rejected.

5. Past dues: do you have any past bills that still haven’t been paid back? If you have any past account dues left under your name, it is better if you complete the payments first before applying for a credit cards which will also increase your credit worthiness. Most financial institutions, including credit cards and loans, will turn down your application when they find out about your delinquency and consider you as high risk consumer. Other reasons why your credit card is denied include only short term history at your current employment, too many inquires about your credit reports, identity theft, incomplete application submission, and financial trouble in the past.

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One Response to “Main Reasons Why Many Credit Card Application is Turned Down?”

  1. I've been given a credit card and 5 days later recieved a letter saying the bank had changed their mind! Says:
    April 28th, 2011 at 2:40 pm

    I need help here please: I have applied for a credit card with my bank (Barclays) and they accepted my application and sent me a card.
    5 days later bank is sending me a letter saying they no longer giving me the credit card and that I dont fit the criteria any more!
    I am so upset.. What to do? Please help. Is thre any way I could appeal or complain? I am just concerned it will damage my credit history?

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