3 Reasons For Your Credit Card Application To Be Rejected
When you go into a bank and want to apply for a credit card, the reason for your application can be very different to someone else. Some people might want it just for the first time to enter the world of credit, while others may simply want to widen their already present credit card range. Irrespective of why you apply, it is perhaps safe to say that no one files an application hoping that they’d be rejected.
To make sure you don’t have to face the embarrassment of having your credit card application rejected, here are 5 reasons why it can be rejected and how you should make sure it isn’t.
A Bad Pay History
Your payment history is one of the most important aspects of your credit score. Thus, it isn’t surprising to know that having a good payment history is vital for you to obtain accredit card. If you have a history of late payments, non payments or skipped payments you are in for trouble as far as the acceptance of your credit application is concerned.
What can you do to rectify it? You need to become a regular and punctual payer of your credit payments and slowly but gradually try and pay off the dues of the past as well. All these steps will help you build a positive credit history.
The level of Overall debt is high
When you file your application for a credit card there are multiple factors that are looked after before the final decision on your application is made. One of them would be looking at your debt and current expenses. If you are someone who already has a high amount of debt over him the credit card companies may be reluctant to grant you another credit card that’ll increase your debt even more.
What can you do in such a situation?
There are two ways; either you decrease the level of debt that you are under or increase your income. The most important thing is to make sure that the numbers of debts aren’t overwhelming you and you still have the ability to manage them responsibly.
A large amount of inquiries
If and whenever you try to get too much credit at a particular time that is unlikely to be seen in the positive light by the lenders of the credit card, it is certainly a red flag when you have a long list of accounts that have all been recently opened or inquires. This will affect your overall reputation to the lender and they might refuse you the chance to be able to spend more.
What you can do? The best thing is to ensure that you only apply for credit cards that seem important to you and are required. If you are rejected because of your large number of credit inquires already don’t immediately re apply, try and rectify the issue and wait a little while before reapplying.
These are a handful of reasons why credit card applications are often denied. Be sure to consider them the next time you go to file your application.