When you apply for a credit card you hope to receive an instant approval. When this happens, it won’t be long before you’re able to use your credit card and take advantage of its many benefits.
Unfortunately, there is no guarantee of an approval. There are many reasons for a credit card denial, with the following among the most common:
- You have too much debt. Simply put, if your loan balances are too high, credit card issuers will think twice before approving your application. This holds true both of general loan balances, as well as other credit cards.
- Your income is too low. The income required to obtain a credit card varies from one issuer to the next. If you want to apply for a credit card, make sure you have a steady job and steady income.
- Little or no credit history. If you have a short credit history or none at all, credit card issuers may have concerns about your reliability. With a secured credit card, you can begin to build your credit with the idea of obtaining an unsecured card in the future.
- You have a delinquency in the recent past. While everyone makes mistakes, credit card companies don’t want to come across a delinquency on your credit report over the past few months. This is why it’s so important to pay your bills on time.
- You neglected to complete the entire application. This almost always leads to a credit card application denial, however, it’s something you can easily fix. If this was the problem, start at the beginning and pay close attention to what you’re doing. Be sure to complete the application in full this time around.
When you understand the reason for your credit card denial it’s much easier to improve your situation as to avoid the same outcome the next time around.
