Why Your Credit Card Application Wasn't Approved: Low Income
Knowing how to get a credit card application approved is often a mystery for most, as different providers can have somewhat different requirements. There are, however, common reasons why your application may be declined. In this series, GoBear attempts to unravel the mystery of credit card application and help first-timers to get the credit card that’s right for them.
It goes without saying that income is one of the major factors considered by banks when you’re applying for a credit card. This has always been the case. It’s one of the ways they gauge if you can pay back the money you’ve “borrowed.”
- Your credit score
- Your job and employment status
- The age of your other credit accounts
- Your other financial obligations
- Accept a low credit limit
Check which bank will consider giving you a credit card with a low credit limit. This low-limit credit card can be your stepping stone to a better one in the future; you just have to manage its usage carefully. A great rule of thumb is to set your usage limit to 30% of your available credit.
- Opt for a secured credit card
If you’re planning to open a savings account, you can choose a bank that carries your desired credit card and use your deposit as a “security deposit.” Get a secured credit card so you’re forced to stick to a credit line; several banks will actually offer you a credit card if you decide to open an account with them. Take advantage of this and use your secured credit card responsibly to increase your credit score.
- Bump up your income
Banks don’t just look at your primary job or a single source of income when determining your eligibility for a credit card. Start a business or do some freelancing or consulting on the side to increase your monthly income and banks may look at you more favorably when you apply for a credit card.
To see which card is the ideal one for you, compare credit cards with GoBear today!