There are a number of different steps and requirements you need to meet to get a credit card application approved. This also means there are many reasons your application could be unsuccessful – and most lenders won’t automatically tell you why it was declined.
From making a mistake on the application to not including supporting documentation or dealing with poor credit history, here we take a look at the most common reasons credit card applications are rejected and what you can do about it.
Reasons your credit card application may be declined
Understanding the different reasons your credit card application may be rejected can help you figure out your next steps. A credit card application rejection is not always caused by having bad credit. Some of the most common problems include:
- Your age. If you are under 18 years of age then your credit card application will be declined.
- Incorrect information on your application. Something as simple as entering your driver’s license number wrong or misspelling your residential address could mean the credit card issuer is unable to verify your details and move forward with the application process. If a mistake is the reason your credit card application is declined, you may be able to resolve the situation with the issuer by amending your application.
- Recent changes in your circumstances. If you have recently moved or changed jobs and you haven’t updated this information across all your networks, it could be hard for the issuer to verify your identity or access your credit report. As with mistakes on the application, you may be able to deal with this by calling the credit card issuer and/or by providing additional documentation.
- Not meeting income requirements for the card. Many credit cards have minimum income requirements. If your annual earnings are less than this amount, you’re application will be declined.
- Poor employment circumstances. Stable, ongoing employment helps show issuers that you can meet repayments for a new credit card. So if your employment is temporary, casual, part-time or hard to verify for some other reason, you may find it hard to get approval for certain cards.
- Other financial risks. When you apply for a credit card, you have to enter information about your income and expenses. If you have a lot of expenses in comparison to your income, the issuer may determine that there is a high risk you won’t be able to meet repayments and decline your application.
- Not meeting citizenship or residency status. While there are some credit cards available for temporary residents, other cards are only available for permanent residents and citizens of your respective country. So your application could be rejected if you don’t meet these requirements for a particular card.
- Bad credit history or “adverse bureau” information. When you apply for a credit card, the issuer will request a copy of your credit file from a credit reporting agency. If you have negative or “adverse bureau” information in your credit history – such as late payments, defaults, too many applications for credit or even not enough credit history – the issuer may find you do not meet the requirements for the card and decline your application…Read more>>