Most people will agree with me that their card or loan application got denied even with high credit.
Well, this feeling can be very frustrating. Especially when someone else with a lower credit gets approved for the same credit card.
So, what exactly is the problem? Why will a credit card issuer turn down your application with a high credit score?
All these will be discussed in this article. In this article, we will be telling you four possible reasons why your application was denied.
So, if you’ve experienced this in the past this article is an eye-opener for you.
Having said that, let’s tell you four possible reasons why your application was denied.
Denied A Credit Card With A High Credit Score, Why
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Not Enough Credit History
This is one major reason why your credit card application can be denied, even with a high credit score.
Hence, you can get a high credit score with little experience in using credit. This is possible if you’ve been using someone else’s credit card or have been an authorized user.
Most credit card issuers often treat new members differently from previous members.
Hence, you might have a high credit score and still have no credit history.
In cases like this, most credit card companies might not consider you for their cards.
Hence, you’ll have to build up your credit history and try applying for that credit card later in the future.
Thus, you’ll need about five years from the time you open your first credit card to convince a card issuer.
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Poor Income
Another reason why you may be denied a credit card is if you have a poor income. Hence, if you have a poor source of income, you may still be denied credit even with a high credit score.
Thus, if your credit history is in place but your income is not enough, you may still be denied credit.
Most card issuers look out for customers with high incomes. Especially when applying for credit cards with high perks and rewards.
Hence, if your income is not up to the required amount, your credit card application may be denied.
Also, credit card issuers make money from the fees retailers pay them each time you use your card.
So, if you have a low income, they might see you as unsuitable even with a high credit score.
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Excess Debt
It is almost impossible to build a good credit score while indebted. Hence, if you keep paying your bills on time while spending more than you can repay, you will be indebted.
You may say, ‘But payment history is number one’. Well, payment history may be number one but when your debt increases, you may be denied approval for a new card.
Your credit score and history may be good, but with your debts, you may seem like a time bomb to issuers.
Also, many debts can affect your utilization ratio, and this plays a major part in your credit.
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Much Credit Cards Or Much Recent Credit Cards
This factor can only affect your credit card approval if gather a lot of new credit cards at once. And also, if you have a record of opening a new card just to earn welcome bonuses.
So, if you’ve been into credit card churning, it could affect your approval for a new credit card.
Hence, credit card issuers are in search of loyal customers and not those who only need the benefits.
Thus, if you’re not going to be a trustworthy customer, you may get denied even with your high score.
Secondly, opening different credit card accounts at once can affect your approval status.
Hence, this act makes you appear like someone with a major financial issue and need credit.
In this case, card issuers may see you as unreliable and someone who will cost them a loss.
Things Can Change
Hence, the requirements for credit card approval may change over time.
Thus, if the economy is in good shape or card issuers are productive, more customers will be approved.
But, if the economy is unstable or issuers are inefficient, the opposite is the case.
Summary
In summary, credit card issuers are in the business of making profits. Hence, if your history looks like it won’t bring profits, you may be denied.
However, that shouldn’t change the fact that your credit card is important for your card approval.
Thus, a good credit score alone doesn’t guarantee your credit card approval.
Yet having a high credit score is better than having a poor credit score.
To sum it up, we believe this article was of great help to you. However, if you have any questions, please leave them in the comment.
Having said that, thank you for reading!