Why Was My Credit Card Application Denied?

Updated Feb 16, 2022

iii min read

When y'all're denied for a credit card, specially if you keep getting denied, it's may be due to your credit score or credit history. If you understand the factors that cause creditors to reject a credit card application, you lot can work to address credit issues so you may be less likely to be declined for a credit card.

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Creditors tell you lot why your application was declined

If you're denied for a credit card or any other type of credit, the creditor is required to send yous an adverse action notice that explains why you were denied credit. Once you know the reason your credit card application was declined, yous may be able to take steps to fix the problem.

Reasons for a credit card application to exist denied

Credit card companies look at a number of factors when considering your awarding, and when you're declined for a credit bill of fare, one of these things may be the reason:

Low Credit Score

If your credit score is low, start past checking your credit report for errors. You can asking a gratuitous credit report from annualcreditreport.com. Y'all tin can dispute any errors you notice. If you don't see errors, take steps to accost any problems in these factors:

  • Missed or belatedly payments: Creditors may report your payment as belatedly if it is 30 days past due. Paying late makes you a credit risk, and increases your chances of beingness denied credit.
  • Credit Card Utilization:Your credit utilization ratio compares the amount of credit you use to the amount of credit y'all have. Using as well much of your available credit can negatively touch your credit score.
  • Hard Credit Inquiries:Each time you submit an application for a credit carte or loan, the creditor volition file an research to receive your credit score and your credit written report. Inquiries may impact your credit score, so information technology'south best to avoid applying for several credit cards at once.
  • Length of credit history: A long credit history, especially one that shows you've paid your bills on time, will make you a stronger candidate for a new credit carte.

No Credit History

Having no credit history at all ways that you lot may be less likely to exist approved for some credit cards that are intended for individuals who have an established credit score.. If you lot're a student, you may be more probable to qualify for a student credit card fifty-fifty if yous have no credit history. For example, no credit score is required to apply for the Discover information technology® Student card.*

Income and Expenses

If you have a reasonably good credit score just keep getting denied for a credit bill of fare, it may be that your income is too low or your rent is too loftier in relation to your income. Credit carte du jour issuers take your income and expenses into business relationship when assessing whether you'll be able to pay your credit carte beak.

Your historic period

If you lot're younger than xviii, your application for a credit carte du jour will likely be denied. That'south considering eighteen is usually the minimum age to get your own credit card account, merely y'all tin can get a credit card if a friend or family member is willing to add you equally an authorized user on their carte du jour.

Alternatives when your credit bill of fare applications continue getting denied

Apply for a secured card

In some cases, a secured credit menu might be your best bet for getting a credit card if you've been declined for a regular card. With a secured card, you put downward a eolith that will equal your credit limit after you are approved, and use the menu every bit you would any credit card. If you're responsible nigh paying your neb on time, you could  begin to build a credit history and may be canonical for regular credit cards in the futurity. If you have a Discover information technology® Secured Credit Carte, Discover will review your account after seven months to run across if you lot authorize to convert to a regular card and become your deposit back.one

Become an authorized user

A friend or family fellow member tin add you equally an authorized user to their credit card account. You don't need to be approved, because the business relationship owner is responsible for any charges yous brand.

Choose a store credit carte

Some retailers offer credit cards that may take less strict application requirements than general credit cards. They may offer lower credit limits than you would get with a standard credit card, merely using a retail card responsibly may pave the manner to the ability to get approval for a general card downwardly the road. Eventually afterwards taking steps to put yourself on the correct financial path, you will grow more confident when applying for credit cards.