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Why would someone be denied a low-interest-rate credit card

Consider applying for credit cards that’s designed to help people build credit, or with a card company that uses alternative credit data like income and expenses to judge credit applications.
Some options to repay debt include opening a personal loan or asking a member of family or friend for financing.
Once you build credit, it is possible to consider a balance transfer charge card.
If you have a short or nonexistent credit history, you may not be eligible for a credit card.
This could be frustrating if you’re looking to build credit, but there are still options available, such as secured cards, credit-builder loans and becoming an authorized user.

approved next time you apply.
Lenders look at your credit score, debt-to-income ratio, income, employment history, and credit history as key markers in determining loan eligibility.
If possible, work to boost your personal finances before applying or opt for a joint personal loan with a creditworthy co borrower to strengthen the application.

  • Becoming a certified user on the credit card account of a responsible family member or friend may permit you to build credit history without being the primary account holder.
  • If you’ve missed a lot of charge card payments recently or have had run-ins with collectors before, a lender may not desire to issue you a new line of credit.
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Along your credit history is an important aspect of one’s credit score and getting new credit.
You can build credit by opening an account in your name, being an authorized user on someone else’s account, and periodically using the accounts you already own and paying them on time.
One thing you should do is understand why you were declined for an individual loan.
Any lender who denies loan approval must send an adverse action notice, which lists the reason why(s) your application was declined.

You’re Our First PriorityEach And Every Time

While this doesn’t seem fair—after all, you can’t build

income fluctuates because you’re self-employed or do seasonal work, that doesn’t mean your application will be declined.
While your paychecks might not be consistent or predictable, some lenders could be ready to look at your past taxation statements so they can compare your earnings over a longer time period.
The APRs applicable back will be determined by our review of your credit file, information you provide on your own application, along with other relevant information available to us.

You Have High Debt

IDFC FIRST Bank shall not lead to any direct/indirect loss or liability incurred by the reader for taking any financial decisions using the contents and information mentioned.
Please check with your financial advisor prior to making any financial decision.
For instance, you might prefer credit cards that offers cash return on everyday purchases.
Or you might want a card with a $0 annual fee or some type of introductory cash bonus.
Disclaimer – The information about the Wells Fargo Cash Wise Visa card has been collected

  • If however you fall just shy of those qualifications, you could be declined.
  • Plus, every new credit card application generates a difficult credit inquiry that may lower your credit history.
  • Factors like your payment history and balance due are heavily weighed in your credit score.
  • Payment history is the most crucial factor in FICO’s traditional credit scoring model, accounting for 35% of your score.

Here are five explanations why your high score might not get you your new favorite card.
You have the right to get a free copy of one’s credit report within 60 days of being denied credit.
Simply contact the credit scoring agency that provided the credit report and ask for a free report.
You need to be informed in writing why you’re denied a credit card or loan.
If the letter you receive doesn’t say why you were denied, it must let you know of your to be given the precise reasons for denial in the event that you request it.

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Review Your Credit File

Basically, keep your balances below 30 percent of one’s overall limit.
If you’ve reached your limit, focus on a plan to begin paying off your debt before trying to invest more.
Consider transferring balance to another card with a low or 0 percent interest or take on a lower interest unsecured loan.
To quickly determine your present ratio, check out Bankrate’s credit utilization ratio calculator.