Why Was My Credit Card Application Denied?
Humans have a difficult time dealing with rejection. Having a credit card application denied is sometimes no different. It is a form of rejection. Dealing with a credit rejection need not be taken personally. There are a variety of reasons why credit card applications are denied. Here are a few.
Companies that issue credit cards have certain guidelines to make sure their investment is solid. Credit issued to bad risk clients are a sure way for them to lose money.
Anyone who has a credit card application denied may not have sufficient credit with other companies to show how well they pay. A limited credit history on a credit report indicates risk for the credit card issuer.
Other problems could be a high balance on other credit cards. High balances indicate possible reckless or irresponsible spending habits. An individual having a recent late payment or two in the past year on a charge account or credit card can also cause a problem.
Those who have recently changed jobs or have been unemployed for an extended amount of time could also be rejected. Credit companies want to know that they are issuing credit to someone with a stable job and work history. Those under 18 years old have relatively no work history and no established credit. Again, unknown work and credit history represent risks for the company.
Another problem could be too many recent inquiries on the credit report. Inquiries are made when applying for a loan or other credit cards. A negative or unresolved issue on the individual’s credit report can also cause a denial. Anyone who feels that a credit card was wrongly denied should get a copy of their credit report. There are methods available for disputing bad credit wrongly reported.