Image source: Getty Images
When you make a request for credit card, there is a good chance that you will be excited about the benefits and features offered by the card. This is why it can be disappointing if the card issuer refuses your request to open an account.
Unfortunately, people can be denied credit cards all the time. Here are four of the most common reasons that could happen to you.
1. Your credit score is not high enough
A low credit score is one of the most common reasons you might not be approved for a credit card. This is especially likely if you are applying for a card with a generous reward program or many cardholder benefits. Indeed, these cards are often reserved for the most qualified candidates.
The good news is that if you are denied a card due to a low credit score, there are many other options. For example, you could ask for a secure card or a credit card designed for people with no credit history or no score.
These cards offer easy approval. You can use them to create credit and possibly try again to get the original card you wanted.
2. You owe too much money
If you already have a lot of debt, the credit card companies may not be willing to give you more credit, especially if they think you are overwhelmed. In this situation, the best thing to do is to work on pay off his debt. Once you’ve reduced your balance to a more manageable level, card issuers are more likely to approve your new card request.
3. You don’t have reliable proof of income
Card companies want to make sure that you can reimburse the charges you make on your card. They can look at your income, and if you don’t have reliable proof of that income (like pay stubs or tax returns) you may not be approved.
Applying with a co-signer can be helpful in these situations, as the card company takes into account both your income and credentials and the income and credentials of the co-signer. This could open the door to getting a card approved even if you are still working to increase your income. Keep in mind that ideally you’ll avoid carrying a balance – so don’t charge more than you can afford based on your income.
4. You’ve applied for too many credit cards recently
Some card companies will not give you new credit if you have recently requested too many other cards. If this happens, just wait until some of the inquiries disappear from your credit report.
Since this is a common reason you are refused a new card, choose which new cards you request. Don’t necessarily apply for something that seems like a good fit – research your options and only apply for a new credit card if it’s really worth it.
The best credit card erases interest until 2023
If you have credit card debt, transfer it to this top balance transfer card guarantees you an introductory APR of 0% until 2023! Plus, you won’t pay any annual fees. These are just a few of the reasons why our experts consider this card the top choice to help you control your debt. Read our full review for free and apply in just 2 minutes.
We strongly believe in the Golden Rule, which is why the editorial opinions are our own and have not been previously reviewed, endorsed or endorsed by the advertisers included. The Ascent does not cover all the offers on the market. The editorial content of The Ascent is separate from the editorial content of The Motley Fool and is created by a different team of analysts. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.