Applying for a credit card can be a big challenge especially if you’re a first-time applicant. While its tougher for fresh applicants, the same can be said for secondary credit card applicants. There are a lot of different factors that could factor in as to why credit card applications aren’t approved such as credit delinquencies.

Regardless if you’ve got money to pay off the amount you borrowed from your credit card, the banks still need to follow the rules and those rules state that your request for a new credit card cannot be allowed if you have credit delinquencies under your name.

What are credit deliquencies?

Credit Delinquencies are defined as missed payments. There’s a ton of classification for delinquent payers but the most basic definition is when you miss a single monthly payment. Credit card companies however flag an account as a delinquent payment if it no payments have been made for two consecutive months.

What happens when I constantly miss payments?

When you constantly miss payments and don’t make a way to actually pay it back, your name and account ends up in a collections agency. These agencies are not part of the bank or financial institutions that issued your credit card. Rather they are third party companies that work with the bank buy buying delinquent accounts.

You see at some point or another, banks will just give up calling you up altogether. But that doesn’t mean you get away from your credit card debts scot free. Banks turnover your account information, including the money you owe, to the collection agency and let them sort it out for them.

If you’re fond of the rewards that you get from using your credit card, you’ll have to say goodbye to those as banks will have removed all the rewards that you’ve earned in the past.

Becoming a delinquent creditor will also ruin your credit history. While I’d like to say it’s no biggie, its actually a big deal. With a bad credit history you won’t be able to get a credit card to replace the old credit card you have. You also won’t be able to get a personal loan, a house loan or a car loan.

There have been some instances where the employers will also dig up your credit history during the application process. Think of what that would mean for your career!

What should I do?

Here are three tips from your friends from GoBear Philippines.

  • Contact the credit card company – if you have been a delinquent payer for only a short time, it would be good to get in touch with your provider and talk to them about the situation. If you have the full amount you owe, better make that payment.
  • Get Ready for Interests and Piled up Late fees – one way banks and financial institutions earn off money from credit cards is through late fees and interest incurred by credit card holders. So if you really want to get your credit card application approved, you need to get ready for these charges.
  • Make a Payment Plan – to avoid credit delinquencies in the future, you need to start making a monthly payment plan. As the name suggests, this should include the dates you need to make payments. This could be as specific as bank payments and it could also go as general as other things like water bills or electric bills. It’s going to be a big help in handling your finances in the future.

Remember, if you want to get approved with your credit card applications, you need to cover your bases properly including your old credit card debts, if you have any.

To learn more about credit cards including getting great comparative analysis, visit GoBear today.


GoBear team

GoBear team

GoBear Team - Our content creators collaborate to come up with finance articles that will make financial literacy a joy to learn and financial security an attainable goal.