If you’ve had a credit card application denied, you’re probably wondering why. The credit card company rarely tells you on the spot just why your credit card application was denied. Instead, they send an adverse action letter within 7-10 business days of your application. The adverse action letter will give you the specific reason your credit card application was denied. While you’re waiting to get your letter, here are some possible reasons your credit card application could be denied.
1. You didn't completely fill out the application.
If your application is missing vital information, you risk being denied. The good thing about most online credit card applications is that they often won’t let you submit the application until it’s complete. That way, you eliminate the risk of having your credit card application denied because it wasn’t complete.
2. You're not old enough to get a credit card.
If you’re under age 18, you’ll probably have your credit card application denied. There are some exceptions, for example, if you’ve already been added as an authorized user to your parents’ credit card. Even young adults under 21 can be denied if they don’t have income or a co-signer.
3. Your income is too low.
Income limits vary by credit card issuer. You could have your credit card application denied if you don’t make enough money for that credit card. Seldom do credit card issuers publish minimum income requirements for their credit cards, so it’s up to you to estimate which credit cards fit your income.4. You haven't been at your current job long enough.
An unstable work history could have your credit card application denied. Credit card issuers like applicants who have been on their job consistently. If you’ve been job-hopping and have periods of unemployment, you may have a hard time getting approved for a credit card.5. You have a thin file or limited credit history.
Having little or no experience with credit could result in a denied credit card application. If you don’t have at least one account that’s been active in the past six months, FICO can’t generate a credit score for you. Without a credit score, the credit card company can’t approve your application.
6. You have a recent collection or public record.
As time goes on, collections and public records affect your credit less. However, when these negative items first appear on your credit report, they hurt your credit score most. These serious delinquencies are a sign to the credit card company that you don’t have enough money to meet your financial obligations.7. You have a charge-off on your credit report.
A charge-off is a credit card balance that went unpaid for six months or more. It’s one of the worst things that can appear on your credit report. Honestly, if you failed to pay another credit card, a new credit card company will hesitate to give you a credit card. Paying the charged-off balance will improve your chances at getting approved.
