Denied for a Credit Card with Excellent Credit
Even if you have very good credit, you may not get approved for the credit card you apply for. This can be shocking because many people have the common misconception that you can get anything if you have an excellent credit score. However, it is important to remember that credit scores are not the only factor that credit card companies look at when deciding whether or not to issue a credit card. You should understand other factors that come into play.
You Don’t Make Enough Money
If you don’t have the proper income for the credit card that you apply for, then you will get declined. Unfortunately, it is difficult to figure out which cards your income qualifies you for. You can contact the credit card company directly to ask any questions you may have in order to determine your eligibility.
You Have Too Much Debt
Regardless of the type of debt, it can definitely affect your approval odds. Whether credit card, or loan debt, the amount you have to pay off is important.
You Have Too Many Credit Cards
While there is no rule of thumb to determine how many credit cards you should or shouldn’t have, you should be aware that this can affect your approval. The reason is because card issuers may not want to take the risk of someone who has too many lines of credit.
You Don’t Have Enough Credit Activity
You want to make sure your credit report stays up to date with activity. Any activity that you do with your credit, you want to make sure you give it a few days to actually show up in reporting for credit card issuers.
You Have Too Many New Applications
Even though hard inquiries on your credit report don’t greatly impact your score, they can greatly impact your chances of getting approved. Credit card issuers view many applications in a short time frame as a risk to them because it may signify that you are in financial trouble and/or are taking on too much credit.
You Have a New Account
Sometimes credit card companies will deny you a new credit card if your latest one is fairly new. That is because they want to see how you handle that additional line of credit before you get another one.
You Don’t Allow Access to Your Credit Report
This wouldn’t be on purpose. However, if you have currently frozen your account because of security or fraud reasons then your credit card issuer may not be able to pull your credit report to determine your eligibility. You may get denied because they just can’t see your credit report!
There are numerous aspects that go into getting approved for a credit card. While it may seem counter-intuitive to get denied even though you have an excellent credit score, it is a very real possibility that you face. You can always contact the card issuer and ask questions and even see if you can get pre-approved for the card you are interested in. Take your time, do proper research, and you will be able to find a card that works for your financial situation!