Credit card application rejection is a part of life. First, people are afraid because they wonder, does applying for a credit card hurt credit, but the reality is something else.
Here are some reasons why your credit card application rejection.
Bad credit history
If you have a bad credit history, don’t be surprised if your application for a new credit card gets rejected. Many adult consumers can get approved for the first time on their own, which is great! However, if you already have a history of late payments or defaulting on debts, a credit card company will likely not want to extend more credit until they see that you can pay off what’s already been given.
Lower levels of income
Income is not the only factor considered when a lender evaluates your credit card application, but it is crucial. Even If you have a steady income that’s below the level of your desired credit card, there’s a good chance you’ll still get approved for the card. However, if your income falls below what you would like to be approved for—or perhaps even just shy of that amount—you may need to consider other options.
History with application rejections
If you have been rejected for a credit card application before, your application will likely be rejected again. To change this pattern of rejection, you need to show that you have changed your ways and are now able to maintain an excellent financial reputation over time. This is done by showing a good credit history for a while.
If you have already checked the important details of your application, then the next step is to check that the information provided is correct. Some banks ask for proof of address and employment details, while others require credit score and history. For example, the bank can reject it if you are applying for a new credit card and there is a mistake in any of these fields.
If you want to apply for a credit card and the application is rejected, it could be because your credit card issuer believes you are not a resident of their country.
If this is indeed the case, there are two things you need to do:
- Provide proof of residency with which they can confirm that you live in that country. If your address doesn’t match up with what they have on file, they may ask you to provide proof too;
- Open an account in their bank so that they know where to send any correspondence related to their services
Numerous balance transfers
Balance transfers are only available with certain credit cards, and you may have applied for too many of them. If you apply for a balance transfer, they must be from different issuers. So one accepts your application in error because another issuer has already denied your request. Balance transfers also don’t always have the same terms as regular credit cards, so it’s essential to read all the fine print before applying.
SoFi experts say, “Applying for a credit card may be a simple process in terms of filling out the forms, but that doesn’t mean it’s something to take lightly. It can have very real effects on your credit score, and thus is always something to be considered carefully and done responsibly.”
So, if your credit card application is rejected, don’t worry. You can consult a financial advisor to help you process your application successfully.