Why Was My Credit Card Application Declined?
A credit card is a major milestone in anyone’s financial life. It gives you more financial flexibility and means your credit score is in good shape. Getting a card can also be a vital part of an effective money management plan. But it isn’t always easy. For various reasons, many people must endure the frustrating experience of having their credit card applications declined. It doesn’t always mean that you are financially irresponsible. It also doesn’t mean that you won’t get that prized credit card soon. Here are some of the most common reasons why you may have a credit card application declined.
Possible Reasons Your Credit Card Application Was Denied
Your Credit Score Is Very Low
Credit scores can help you with everything from securing certain loans to opening a business. While credit cards are available for those with a range of financial histories, many do have strict requirements when it comes to credit scores. If you are denied a credit card, and it is one of the cards offering the top rewards or interest rates, your credit may not be in the “good” or “excellent” categories to gain approval.
Generally, “good” credit starts at the 670 FICO Score range. If you were denied, your credit score may not be in the best shape yet.
You Have Too Much Debt
Another very common reason that you may get a credit card application declined is if you already have high credit card debt or a huge outstanding loan balance. Those two issues often are a giant red flag for lenders. By already having too much debt compared to your income, you are likely going to be seen as a risk to a credit provider. They will see that you just may not be able to add another monthly payment to your credit burden. It also indicates that you may not be using your credit card responsibly.
You Don’t Have Enough Credit History
Younger people may get a credit card application declined also because their credit history is just far too limited. If you’ve never had a credit card before, it is somewhat challenging to get approved for one on your first try unless you have a spotless financial record.
But even then, some credit providers may want to see more evidence of your creditworthiness.
Short credit histories don't always mean an automatic no from credit card companies, however. Several credit cards are designed for those who are just starting financially.
Your Credit Report Has Errors
When you put in a credit card application, your credit report is the main factor in whether you may have your credit card application declined. Some of the issues here may be out of your control.
Sometimes, there is data that is incorrect on credit reports. This could be the result of a computer algorithm error, fraud, or a mistake made by a credit bureau (hey, it happens).
If you are surprised your application is denied you can review your credit report for inaccuracies by requesting a free copy. If you see something suspicious in your report, you can then file a dispute with the bureau that created your credit report.
Your Credit Report Has Some Major Negatives
Other times, credit reports are entirely accurate — and may offer credit card providers with some seriously negative information about your financial history. This could include unpaid child support, lawsuits, tax liens, or charge-offs. Any of these situations can contribute to the reason why a credit card application is denied.
You Are Still Dealing With Financial Emergencies
If you have such negative information on your credit report, it may come from not being able to manage financial emergencies quickly. If this is the case, a payday loan is an option for help.
Payday loans are designed as short-term loans to help with emergencies such as an emergency room visit or vital car repair. Payday loans are best used if you need a little extra assistance between paychecks. For those who qualify, Utah Title Loans, Inc. offers payday loans between $100 and $500.
All you need is a driver’s license or identification issued by Utah, a blank check from a checking account that is in your name and active, and your most recent pay stub.
And at Utah Title Loans, Inc. we encourage those with all types of credit history to pursue a payday loan.
Start today by completing the payday loan form online. A loan representative will call you and help you through the quick process — it often takes as little as 30 minutes. Once you are approved, you can get your cash the same or the next business day.
If you’ve had a credit card application declined and you’re dealing with a major financial emergency, consider payday loans from Utah Title Loans, Inc. Start online today to get the help you need.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.