Imagine this: you apply for a credit card and patiently wait for it to arrive in the mail.
Then something strange happens. Instead of receiving a card, you end up with a rejection letter. This can be disappointing on many fronts. While you may feel like giving up, it’s important to review the letter in great detail and then do your best to determine what went wrong.
Here are some of the most common reasons for a credit card denial:
• Your credit isn’t up to par. In short, if your credit score isn’t high enough there’s a good chance your application will be denied. This is why it’s important to know where you stand before you begin the application process.
• You didn’t complete the application in its entirety. Double check the application for completeness before you submit, as a lack of information could work against you. Remember, you’re asked all those questions for a reason.
• Your work history isn’t solid. Did you recently change jobs? Were you recently unemployed for an extended period of time? Are you out of work right now? If you answered yes to any of these questions, it could work against you.
Although a rejection letter can be frustrating, it doesn’t have to stop you dead in your tracks. Instead, once you have a better idea of what went wrong, you can make the necessary changes to improve your chance of success the next time around.
Final tip: before applying for another credit card, learn more about its requirements and whether you qualify. This allows you to avoid an offer that doesn’t match your financial situation.
Can you think of any other reasons why a credit card application may be denied? Have you dealt with this in the past? Share your thoughts and advice in the comment section below.