You were expecting a new shining credit card from your bank but instead you got a denial letter. And you cannot understand why you were denied and why your credit card application was declined. But the bank denial usually has several causes. This short article will help you to understand the main reasons your credit card application could be declined.
It sounds odd but banks regularly receive credit card applications from teenagers dreaming about credit cards. To all appearances, those kids are not going to be deceptive; they are simply not informed that to be qualified for a credit card by credit card institution a person must be eighteen and more. Having access to many things from adult life, teenagers want to have not only mobile phones and email but they dream of credit cards too. Thus, if you are under eighteen, you will definitely get a denial from any bank.
The next wide spread reason for denial is if an applicant does not make enough money. To be qualified for a credit account every applicant must have some stable income. An applicant will not receive a credit card if his or her income is not stable and not enough.
Another common reason why a credit card application can be declined is when an applicant switches jobs often or has recently moved. Credit card institutions like to see people with stability in their lives as their clients, and that is why they notice how long an applicant has been at his current job or residence.
An applicant’s credit card application will be declined too if he owns too many credit cards already. Card institutions do not trust those people who open a lot of credit cards and accounts, as it may be a sign that a person maxes out his cards and do not pay well his debts. It is natural that credit card institutions are not eager to lose their money on those applicants who are not very good with their credits.
But the most wide spread reason for denials is when the credit story of the applicant is too bad or too short, because when the applicant’s credit score is too little or he does not have it at all, card companies think that the credit history of the applicant is bad and thus they have no basis to trust the applicant.
Applicants getting a credit card must have steady income and stable living conditions and current job; and they must have excellent or good credit score. If they do not meet these requirements their credit card applications will be denied.
Usually card institutions take into consideration every nuance and they want to have cardholders who are able to pay off their credit debts.
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