At the end of 2008, 78% of American households had one or more credit cards.
This is about 91.1 million families, as stated by the Nilson Report on April 2009. Yet, around 15% of all
applicants experience credit card rejection. Why does this still happen? What are the top causes of credit
card rejection? How can consumers avoid it?
The first and most obvious reason for credit card rejection is bad credit or no credit at all. Remember, having a
good credit score or credit status is always directly proportional to getting an approval. If your previous record
shows a lot of late payments and default in paying your other bills, the credit card company will definitely
question your reliability as a client and will think twice before approving your application. Even an empty credit
score is a problem since the card company will not be able to assess a potential client’s credibility.
Another reason for credit card rejection is insufficient earnings which may not necessarily satisfy the conditions
required by the company. Your earnings should be enough to satisfy their requirements and eligibility criteria. You
can’t bite off more than you can chew. Try to live within your means to avoid credit card rejection.
Another common reason for credit card rejection is the length of your employment period. If you are newly employed,
the company may take some time to issue you a card. A worse case would be a credit card rejection.
Students usually experience credit card rejection because they apply for regular credit cards. Companies structured
the student credit card to make sure that even though your age, income, and credit history (which is more or less
nonexistent) is unlikely to meet their requirements, you still get the chance to have your own card. Remember,
regular credit cards are meant for earners who have enough income to pay their bills, not for students.
Another common and careless mistake that leads to credit card rejection is an incompletely filled out form or one
that contains errors. Make sure to write legibly so that they can be read and verified by the company. A misprint
or a skipped portion of an application form can lead to credit card rejection. Make sure you recheck it before
Another unfortunate cause of credit card rejection is a mistake in your credit card report. Make sure to review
your report and if errors do exist, contact your credit bureau to have them corrected. You cannot just let errors
on your record go by without rectifying them. They may come to bite you later when you least expect them.
Credit card rejection happens but what you need to realize is that there are a lot of ways to avoid
Source: Credit Cards For People With Bad Credit Rating
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