Did you get turned down for a credit card recently? Are you pissed off because you can’t even build your credit?
Let’s take a quick break from financial freedom to cover some important stuff this week. I wanted to take a step back to look at credit cards and what happens before you even receive this magical piece of plastic
I often find myself writing about student credit cards on here. I cover all angles of credit cards, from the benefits, cons, who should avoid them, and how you can use them to your advantage.
There’s one question that I’ve totally missed out on attacking.
Why did I get turned down for my credit card?
Let’s look over the possible scenarios at play here to figure out why you got turned down for that credit card application recently…
You’re too young.
If you’re under 18 you won’t get accepted. If you’re under 21 there are also some complications that can prevent you from obtaining your first credit card. You might have to find a co-signor or just wait until you’re old enough depending on the specific situation here.
You couldn’t prove your income.
You have to be able to prove your income if you’re under 21. The new credit card regulations make it difficult for someone with no source of income to be given access to credit. You can argue this, but it makes perfect sense. Why should you be given access to $500 if you don’t even make $500? How do you plan on paying your balance off?
Your income isn’t high enough.
You don’t have to be earning a fortune, but it helps to have money coming in. Student credits are an awful idea when you don’t have the money coming in and have a desire to purchase. The last thing you need to have is credit card debt haunting you into your 30s.
A recent collection issue.
As you can imagine, this could cause some trouble with applying for a new credit card. You might have to wait a little longer to apply for more credit if this has happened to you recently. The same goes for a recent charge-off on your record.
Too many credit cards.
Having too much credit available to you at an early age can cause some problems. There’s only so much credit that companies want you to have if you don’t have an established credit history yet.
Did you fill out the application properly? When you decide what credit card to apply for, you need to ensure that you fill out the entire form accurately. It could be a simple error that’s holding you back.
Existing high balances.
If you owe a bunch of money, you may also be automatically turned down. You know the deal here. You’re going to have to work on those balances first.
One of those reasons (or a few) should help you figure out why you got denied for that credit card application.
The good news is that it’s not such a big deal. You were automatically rejected by a computer. The rejection is nothing personal (unlike last Friday night). You can take a few minutes to call the credit card company to speak to an actual human being. This should clarify why you were rejected and what you can do next.
Will you have better luck with applying for a credit card this time around?
4 thoughts on “Why Did I Get Turned Down For a Credit Card?”
Well at least the financial institutions are excercising some restraint now. Prior to 2007 they would literally accept every applicant, which is why they lost so much money.
Good point Tony. Despite the many loopholes that are still present, not just anyone will get access to credit these days.
Yeah, I remember the bad-old days. After I graduated high school, I got a credit card offer in the mail, filled it out (monthly income $800, length at job, 9 days) and got a credit card with $1000 limit a week later.
Or you have too many hard inquiries. I made the mistake once of applying for a credit card too soon after I had applied (and been approved) for a different card. Learned my lesson: Apply in moderation.