Getting approved for a credit card is not always easy. It seems the eligibility requirements keep increasing by the day. Every credit card has specific requirements even when it is coming from the same issuer. Has your credit card application been denied recently? Here are 11 reasons you can’t get a credit card.
You’re under age 21 | Reasons You Can’t Get a Credit Card
Firstly, college students and other young adults may find it harder to qualify for credit cards now due to government legislation requiring credit card issuers to verify the income of applicants under age 21. If you’re a young adult, make sure you have regular, reliable income before you apply for a credit card.
You’ve never had credit before | Reasons You Can’t Get a Credit Card
Secondly, most credit issuers consider your credit history so you need to have used credit before to have one. The first credit card is often the most difficult to get because you have to find a credit card issuer and a credit card that’s suited for people without a credit history.
You have a short credit history | Reasons You Can’t Get a Credit Card
Thirdly, it doesn’t instantly get easier to get a credit card after you’ve been approved for the first one. Until you’ve built several months of solid credit history—paying on time and managing your credit card balance—other credit card issuers may still be cautious about approving you for a credit card.
You have no or low income | Reasons You Can’t Get a Credit Card
Fourthly, the law requires that credit card issuers, before approving your application, make sure you have enough income to repay your credit card balance. If you don’t have a job or you don’t make much money, you’ll have a harder time getting approved for credit. Not only because the law requires you to be able to afford your credit card, but also because the credit card issuers need to know that you can repay back the balance you’ve borrowed.
You’ve recently filed bankruptcy | Reasons You Can’t Get a Credit Card
Very few credit card issuers are willing to take a risk on an applicant who is fresh out of bankruptcy. Some credit card issuers won’t approve you until the bankruptcy has fallen off your credit report completely. Wait at least a year after your bankruptcy discharge before you apply for a credit card again.
You have recent late payments | Reasons You Can’t Get a Credit Card
If you’ve been 30 or more days late on a credit card payment recently, you could have a harder time getting approved for a credit card. Even if the late payment didn’t cause a big drop in your credit score. Late payments indicate that you’re a risky borrower. After making several months of on-time payments, the late payment has less of an impact on your credit rating and you’ll have an easier time getting approved.
You have several past delinquencies
Your credit card is delinquent once you are past due on your monthly payments. If you have multiple late payments and other delinquencies can also make it harder. Charge-offs, collection, foreclosure, repossession, and lawsuit judgments all tarnish your credit history and make credit card issuers wary of approving you for a credit card.
You have high balances on credit cards and loans
High balances mean high monthly payments and the risk of defaulting on new credit card balances. Carrying a lot of debt will make it harder to get a credit card. Even if you’re looking for a credit card to help alleviate some of your debt burdens.
There’s a fraud alert on your credit report
A fraud alert can protect you by preventing identity theft. But, it does this by promoting credit card issuers to take extra steps to verify your identity before approving your applications. You may find that some online credit card applications cannot be processed because the card issuer needs additional information from you to make sure that it’s really you who’s applying for the credit card.
You’ve applied for several credit cards recently
Too many recent credit card applications can indicate that you’re in financial trouble and you’re looking for a credit card by all means. It could also mean that you’re taking on more credit than you can handle. If you apply for several credit cards in a short period of time. you might notice that your applications are being denied. Instead of applying for more credit cards, wait a few months before trying again.
You recently opened a new credit card
Lastly, even just one recently opened account can make it harder to get approved, depending on the credit card. Many credit card issuers want to make sure you can handle your new obligation responsibly before they will approve you for another credit card. Waiting a few months between credit card applications and improve the chances of you getting approved