Why Was My Credit score Card Software Denied?
It is a must that you know the reasons why your credit card application has been declined. This is to ensure that you don’t apply for more cards only for your application to be rejected again.
The following are some of the most common reasons for a denied credit card application:
Your income is far too low or your work history is unstable
Credit card providers usually prefer applicants with stable job histories as your application may be rejected or accepted if the lender has full confidence that you can keep up with your payments every month.
Your application may also be denied if you have an extremely low income and providers are unsure whether the repayments are within your means. With the rise of self-employment and flexible employment contracts, lenders are now starting to update their policies to reflect these changes.
You have an extremely large amount of outstanding balance
If you have multiple outstanding loans and credit card balances, you may face penalties for having high balances or for maxing out your balance even if you make repayments on time. This is because consumers could be at risk if the renewal takes too long.
Credit card providers want you to manage your credit effectively enough, using only a portion of your available credit.
It is a must that you try to reduce your outstanding balance before applying for additional credit cards. If not, the credit card may take it as a sign that you are having trouble managing your money.
Your credit rating is limited
In order for your loan application to be accepted, you will need to demonstrate that you can effectively manage it. This may be easier said than done when you have a limited credit history. You should have at least one account that requires credit that is open for 6 months in order to be able to generate a credit score.
Show lenders your effectiveness in managing credit by properly managing your payments on utility bills, a phone contract, or an overdraft. Once your credit card has been created, there is a higher chance that your credit card application will be accepted in the future.
You have received late payment charges
Late payments can negatively affect your score. If you have made a payment by any point in the last 6 months within 90 days of the due date, this may increase the likelihood that your application will be rejected as it signals to the lender that you are less likely to pay is down the street on time.
You have a lot of loan applications
Finally, your credit card application can also be rejected because you have many loan applications or so-called inquiries in your credit file. Other credit card companies will recognize this and may indicate that you are having a hard time managing your finances effectively.