Work on improving your credit score to improve your chances of having your application approved next time. Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities. The credit card offers that appear on the website are from credit card companies from which ThePointsGuy.com receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all credit card companies or all available credit card offers. When a credit card applicant places a request for a credit card, there are both the chances that he might either get approved for a credit card or his application might be rejected. Now credit card application gets rejected not just because of a single reason but multiple reasons.
A history of late payments—or not paying your card at all—is a major factor, as is consistently maxing out your cards or having a high utilization rate. Each credit card has a different threshold for the creditworthiness required. Generally speaking, more premium cards require excellent credit, though there’s no hard and fast rule. Though it may feel like it at the time, a denied credit application isn’t the end of the world. It happens more often than you think, even to customers who have their act together.
One is that you may be planning some travel or major purchases that could cause you to bump up against your current limit. Another is that you might hope to raise your credit score by improving your credit utilization ratio. That’s the amount of debt you have outstanding at any given point compared with the amount of credit you have available to you. A higher credit limit can mean a higher score—as long as you don’t go out and charge more than you normally would.
Our experts answer readers’ credit card questions and write unbiased product reviews (here’s how we assess credit cards). In some cases, we receive a commission from our partners; however, our opinions are our own. In general I encourage people with excellent credit to apply for cards even if they’re not sure they’ll get approved, though be realistic and smart about it. If you’re straight out of school, start with an Amex card rather than a Chase card. If your credit score isn’t amazing, maybe be a little more conservative than if you have an excellent credit score. Applying for a credit card results in an inquiry on your credit score, but does the impact of that differ depending on whether you’re approved or denied? Well, the good news is that there’s no real “penalty” for being denied for a card.
Card Type
You do not want to use more than 30% of your credit limit overall or on any one particular card. For example, if your card has a $1,000 limit, you should stay around $300 in total usage. Filing for bankruptcy or experiencing a foreclosure can cause drastic changes to your credit score.
- If you feel you might not be eligible, you may benefit by improving your credit first.
- Review your credit report thoroughly and dispute credit report errors if needed.
- It is one of the major reasons why your credit card application can face a denial.
- While we adhere to strict
If you feel you risk accumulating debt because of an increased credit limit, you might want to stick with your existing limit. Missed or late payments on other credit cards can negatively impact your credit score. Typically, the late payment will not show up on your credit report until 30 days later. So, even though you’ll want to make your payments on time or even early, being a few days late should not cause harm to your credit report. Fortunately nowadays I rarely get denied for credit cards, even though I have over two dozen credit cards. That’s thanks to the fact that I have a more established credit history, and also understand how actions impact my credit score, from opening card accounts to closing card accounts. A credit card rejection may not necessarily affect your credit score, but the initial application does.
How To Increase Your Approval Odds When Applying For A Credit Card
Sometimes there’s a mismatch between your creditworthiness and the specific card you applied for. Other times, there’s a reason you never considered hiding behind your denial. If you’re younger than 18, your application for a credit card will be denied. That’s because one of the requirements to sign up for a credit card is being 18 or over, since 18 is the minimum age to get your own credit card account. But you can still get a credit card if a friend or family member is willing to add you as an authorized user on their card.
You may request a Discover credit line increase over the phone, through its website or by using its app. If processing your request requires a hard pull of your credit report, Discover will move forward only after receiving your consent.
If your request for a credit limit increase is denied, the lender is required by law to tell you why. This is known as an adverse action notice, and it will usually come in the mail.
You can get a free copy of your credit report to look it over and see if something was misreported. Sample errors include accounts inaccurately described as being late, incorrect balances or accounts mislabeled as being open or closed. Review your credit report thoroughly and dispute credit report errors if needed. If you’re applying for a new card with an issuer you’ve previously had (or currently have) an account with, they will consider your history as a client as part of their decision. If you keep getting denied for credit cards, there are alternative options you can consider. If you have a reasonably good credit score but keep getting denied for a credit card, it may be that your annual income is too low or your rent is too high in relation to your income.