Applying for a credit card may seem easy. You can do it by either filing out an application online or heading into your local bank branch to get it done. But you may be confounded when you find out that your application was denied. When you are rejected, you will either be sent a letter or an email stating that you will not be issued a new card. These notifications will give you a specific reason why you were denied, which can help you repair your credit for next time you decide to apply for an account. Here are some reasons why you may have been denied a card:
Low credit score
When applying to open a new account, the most important thing a lender will look at is your credit score. This three-digit figure showcases your responsibility in paying back previous debt. The lower your score, the less likely it will be for lenders to grant you a new credit card. Your score may be low because you missed too many payments, have high credit utilization ratio or haven't had a credit card before. Once you improve this score, you will be able to get your card in no time, which can help you continue to improve your credit score.
Lenders like to see a little stability before they issue you a credit card. You may have been denied a card because you are going through some life changes. Moving several times in a year or not staying at jobs for more than a few months may be red flags for lenders. If you find yourself in any of these situations, you may want to show credit card companies that you can be relied upon. If you have any other credit accounts, try paying them off as much as possible. This can show lenders that you are worth doing business with.
When you are filling out your credit card application, be sure to be thorough. Many times, a credit card application is denied because of small mistakes. One wrong digit in your salary or even writing down the wrong number of months you have been at a job can result in you getting a rejection letter. Once you have completed the application, give it a once-over to make sure everything is top notch.