Applying for a credit card is one of the more straightforward methods to build your credit card history. Credit cards have become abundantly available and can get you anything you want regardless if you have cash or not. It’s always easy to get a credit card, but also, don’t be surprised if credit companies reject your applications for credit cards. Credit companies will consider several factors before giving you a credit card. Here are some of the factors that could lead to an unsuccessful credit card applications.
No existing credit history
Without a prior credit history, most creditors will not offer you a credit card. Well, building a credit history is never a one-night thing but may end up taking more years than you think. But the truth is you need to have a credit history for credit companies to trust you. You wouldn’t just go lending someone money even without having a history of them. The same way you won’t trust anyone with your money is the same; a credit company won’t believe you without a credit history. However, you can always try to get to apply for a credit card with companies that offer a credit card for no credit.
Poor credit history
Having a poor credit history would be another reason your credit card application gets rejected. If you never make your payments on time or even never make payments for credits you have used, it is more likely it will be hard for you to get a credit card for no credit. Before making a credit card application, you should make sure your credit report is excellent, as this improves even your credit score. Untimely or late payments will always damage your credit history, so it is good to take the credit you can always clear within the given time frame.
Having existing debts
No one will offer you a credit card, especially if you have current existing debts. You’re likely to be seen as a risky applicant by credit companies; hence will not want to risk being your creditor. Whenever you take out credit, make sure you take what is just enough for you. Having a low liability to income ratio will also raise the chances of your application for a credit card going through.
Most credit companies will not offer you a credit card until you’re 18, as this is the legal age to get one. However, being 25 years of age doesn’t necessarily mean your application is easier to get approved. Some companies will tend not to want to give a credit card to young employees, especially if you have a low-income job. However, if you’re younger, it would be advisable for you to try and apply for a credit card from companies that you have higher chances of getting a card. If a company can offer a credit card for no credit, then it is likely even to approve your application compared to companies that don’t offer such credit cards.
Missing information in an application form
There are times when one might be hasty and skip a few boxes in the credit card application form. You ought to know that these credit card agencies need all the details concerning you. You need to avail your full name, address as well as income.
If by any chance, you miss out on these crucial details in your application form, it might not be successful. The credit card agency might deny your request. Thus, you will have to apply for it once again.
You need to apply for your credit card online, so you don’t skip any field. If you choose to fill out paperwork, the chances of sending an incomplete application are very high. However, the beauty of the online application is that you can’t proceed to the next step or submit an incomplete form.
Not having enough income
While filling out a credit card application form, you need to provide your annual salary. These credit companies have a minimum income requirement. It’s quite unfortunate that they don’t disclose it in the credit card application form. The minimum requirements tend to vary from one company to the next. If an individual fails to meet the minimum requirement, the application becomes unsuccessful.
In such a scenario, you have to wait until when your income increases. Then, you can reapply. You can choose to get a joint credit card application. The company will determine the approval based on your combined incomes.
You ought to shop around for various credit card offers to find a suitable deal. You need to make a direct call and hear from the horse’s mouth concerning the least income approval rate.
Unstable employment history
Having consistent employment contributes a great deal to a credit card application approval. However, if you have a volatile employment history, the credit card agency might put a question mark on your character. They might view your employment as well as income as being unstable. Thus, it may make your application to become unsuccessful. You must wait until you are on your current job for a minimum of six months to one year before you choose to apply for a credit card.
Having too much loan balances
You need to check on the amount of debt you have before proceeding to apply for a credit card. It’s because the credit card issuer has to look at your credit report. If you have too much-exiting debts, it might make it harder to create a new payment. Having too high loan balances can make the credit card company hesitant to giving you another credit card. You must try to pay your loan balances as much as possible. It will improve your chances of having a successful credit card application process.
Having a recent delinquency
Credit card companies look at more than one delinquency before processing your application form. They check on how long it has been since your last delinquency.
Any recent payment is better than predicting the way you can take care of a new credit card obligation. If you have a late repayment in less than the previous six months, chances are your application might become unsuccessful.
By understanding what a credit company wants of you, getting a credit card will always be easy. It is good to make applications to companies that have a higher approval reputation.