Reasons Why Your Credit Card Application May be Denied
Thinking of applying for a credit card? Not sure whether or not you will be approved? Well you are not the only one. Society today seems to revolve around the all mighty dollar and possessing a credit card not only can open doors but also it can come in handy in emergency situations.
If you are uncertain if you have what it takes to
get a credit card or if you have been denied already from a financial
institution and don’t know why, here are some common reasons why credit
card applications are denied
- Human error – whenever information is sent from one person to another there is always the possibility of the information not being accurate or keyed into the database incorrectly. If you feel this is the case, call the customer service department and verify the information they have in their system.
- Insufficient job history – creditors prefer to grant credit to individuals that have a good job history with a single employer. If you are young and just starting to work you may want to wait until you have a few months on the job.
- Insufficient income – your credit application may be denied if the creditor feels your income does not meet their minimum requirements.
- Poor or non-existent credit history – if you have a bankruptcy or a history of late payments you may find it difficult to obtain a credit card. Overtime, if you pay your bills on time and improve your credit score you may be successful at being approved. If you have no credit history you will need to build one.
- Residential history – how long you have lived at your current and possibly previous residence can be a factor. If you have recently moved but you lived at your previous residence for a long period of time you may want to include that on the application.
If you have applied for a credit card and your application has been denied it is important to find out the reason why. By law, the credit card issuer is required to send you a letter telling you why your application was denied. If you find that the letter does not clearly state the reason then you should contact the customer service department and ask them for a specific answer. They are required to give you one. You may also be able to get additional information that will help you change your status from denied to approved.
If you are determined to get a credit card then I recommend applying for a secure credit card. These are fairly easy to obtain because you must deposit funds into a bank account and you will be issued credit accordingly. This is a great way to build and even rebuild your credit history.