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Having a credit is great. It offers the capability of being able purchase something that is way out of your budget and make the payments in installment.

With a credit card, you can learn how to manage your spending because there’s a responsibility you must keep in order to have a good credit rating. 

However, anyone will be downcasted when they received the news that they have been declined from their credit application.

If you’re wondering why your credit card application was not approved, GoBear is here to point out the reasons.

1. You are classified with low income

If you don’t get approved for your application, chances are you are not making enough money. Since you are borrowing a money, credit card companies want to make sure you can pay them back. Banks require different minimum income depending on the type of credit card you are applying for.  

When you apply for a credit card, make sure that your income matches the income level of the type of card you are applying for. 

2. You didn’t complete your requirements 

Most credit card companies require you to provide documents such as Income Tax Return and your latest pay slip. These documents provide proof that you can pay your credit card bills. When you’re applying, ensure that your documents are complete to get approval for your application. 



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3. You have an existing loan 

It’s always a rule of the thumb to pay your debt first whenever you apply for a credit or loan. If you have an existing loan, you will have a tough time getting a credit card. This is because the credit card companies see this as a sign that you might not be able to pay for your credit balances and will only accumulate more loans, and you will eventually fall into credit debt. 

4. You have recent delinquencies 

First, what is a credit delinquency? This is a situation where you have late payments or overdue payments on your credit card account. Credit card companies look at you if you’re a good credit risk. If you have delinquencies, this shows them that you have trouble making payments, making you a high-risk applicant.

Since credit card companies take an in depth look at your credit history, they analyze how often, and how long it has been since your last delinquency. If you have been delinquent in the past few months, there’s a high chance that you will be denied.

5. You have a limited credit history

If you've never had a credit card before, providers can take this as a bad sign and deny your application outright. When applying for a credit card, you need to have at least one credit card or account that's been active for the last six (6) months. If not, providers will find it hard to determine your eligibility because they can't get your credit score.

 

Getting a credit card might be difficult, but the next time you get denied with your credit card application, you can consider these reasons and ensure that the next time you apply, you are cleared off for these reasons.


Want to find the right credit card for you? Check out and compare the best credit cards with GoBear today!

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