There are numerous reasons for which you want to have a credit card. And in order to have your own credit card, you need to apply for one. After application, you do not have to wait long. The approval will come your way right then; the problem is when your application for a credit card is denied. They will not let you know about it but will send you an adverse letter.
This adverse letter will start you about the reason for which your card has been denied. One of the main reasons is not having a good credit score. There can be many other reasons for this disapproval, and you can know about it only after you get the letter. In the meantime, you will lose about8 to 10 days. So, learn how you can save your chances of card disapproval.
You have high loan balances
If you have high loan balances, then you have to make multiple payments already. With too much existing debt it may not be possible for you to make any further payment and thus the credit card company may not approve your application. They may be hesitant about your financial potion and whether you will be able to pay off the debt.
Credit card balances are too high
Every credit card company wants to ensure that you are using a portion of the total credit given to you. This shows that you manage your finances judicially. However, if they find that you use too much of the credit limit given to you, then they may deny the credit card application made by you. It is best to keep your credit card balance below 305 of your total credit limits.
Number of inquiries on credit report are many
Sometimes you may apply for too many credit card or loans during a short period. In such case, there will be too many inquiries on your credit report, and this may not go in your favor when you apply for a new credit card. There is no fixed number that you should have so many inquiries but try to minimize application if they are not required. Thus, if you learn about the reasons beforehand and then apply for credit card odds of getting approved for a firestone credit card improves.
Having low-income
There are different types of credit cards, and each credit card issuer has their own income requirement for issuing a particular type of credit card. In case you do not have enough income that is required for that particular credit card then your credit application will surely be denied. It’s true that none of the credit card issuers will let you know how much minimum income is required but you should know yourself if you can afford a credit card with the income you have presently.
You already have too many credit cards
Sometimes the number of existing credit cards in your name may also affect the approval of your new credit card. It’s true again that there is no fixed number of credit cards beyond which it will be denied, and it varies from one issuer to another.
You have a charge-off on your credit report
If you are unable to pay off your credit card balance for more than 6 months, then it goes for a charge off. Naturally, it is quite bad for your credit report. Now, when you are in such situation that you are not able to pay off the credit card in time how can another company rely on your financial situation. Thus, your credit card application will be denied for sure.
Your last delinquency was too recent
A credit card issuer will credit card with the hope that you will be repaying it to them on time. However, if the last delinquency on your part is too recent, then they will hesitate to approve you another credit card.
This happens because every credit card company wants to ensure that they get the payment they have made on your behalf. Now, if you were irregular in payment before 5 years and presently making payments on time, they will consider that you had financial issues which you have overcome. Thus, they may approve your credit card. However, if the opposite is true, then there are very less chances that your credit card will be issued.
Your credit history is limited
If you do not have a credit history, then your credit card application may get rejected. You must have at least one such account in your credit report that is active for the last 6 months at least. If not, then the credit card company will not be able to understand your credit situation. They will be unable to judge your creditworthiness and because of lack of data, they may not approve your application.
You’re not old enough to get a credit card
What is your age? Are you below the age of 18 years then do not apply for a credit card now as it will surely get rejected! Until and unless you are above 18 years of age no one will issue you any credit card. When you are above 18 years of age and have your own income, you will be able to get a credit card approval provided everything else is fine.
You didn’t completely fill out the application
While you fill the application for credit card make sure that you have filled it correctly. There is much information that may seem simple to you but is quite relevant for the credit card company. When they find such data missing from your application they do not have any other option other than rejecting it. Thus, while you submit the application form be very careful.
Before the next application improve your credit
After knowing the various reason that may affect your credit card application approval, you should act on it. If there are issues for which your application may be rejected now, do not submit the application now, rather wait for some time till you resolve the issue. Then your chances of getting a credit card approval become high.
