Credit Card Denial Even With Excellent Credit can badly hurt. It can be very embarrassing especially when you already made up your mind that you will be approved. However, having an excellent credit, is not a direct access to getting a credit card. A number of factors can lead to you being denied for a credit card even if you have excellent credit. When you have an excellent credit and you do not get an approval for a credit card, the followings may be the reasons.
Credit Card Denial Even With Excellent Credit ; When You Have Excess Debt
You cannot have too much debt in your credit card and have an excellent credit. The debt her may be from loans like mortgage or automobile loan. They may just decide that your debt load too much and deny your credit card application. Another credit card to the debt you are struggling to pay will only increase your burden.
Credit Card Denial Even With Excellent Credit ; Your credit report is locked.
When your credit card is on security freeze or on fraud alert, it will show on your credit report. The credit card issuer for the card you applied for may not approve you because they cannot access your credit report. They need more information to confirm your identity before approving your credit card application. Unlock your credit report and apply for the card, after that you may freeze it again.
Credit Card Denial Even With Excellent Credit ; You have a low income.
Some credit cards require individuals with high income. This is especially the case with rewards credit card. To avoid this problem, search out what a card requires and its qualifications before you apply. It is better to allow credit card issuers to approve you for the credit cards that best fit your income. The more luxurious credit cards, especially with large rewards demand a very high income.
No Update with the most recent information In Your Credit Report.
When the credit card issuer has not shown your current payment update or closed credit cards in your credit report. This may just take a few days based on how often your creditor reports to the credit bureaus.
When You Have A Lot Of Credit Cards
When money lenders discover that you already have a lot of credit cards, they are less likely to approve your credit card application. There’s no number of credit cards that’s acceptable for credit card issuers, they only weigh your ability to take in one more. When they assess you , they may decide that it’s not ideal for you. The financial institution does not want either you or them to take chances.
You’ve applied for too many credit cards recently.
Even though credit report inquiries do not have a huge impact on your credit score – they’re only 10% of your score – they can deny your approval. If you apply for numerous cards within a short time. Many application within a short period shows that you’re in serious financial situation. This is risky to both you and the card issuer.
What Can You Do After Credit Card Denial?
A lot of credit card applications are processed electronically . They use a system that combines your credit history and all your data to decide if you qualify for the card. The computer follows a given code doesn’t have the intellectual capacity to handle your information separately and make an exception to the criteria.
However, some financial institutions have a reconsideration phone number to call and talk about your application. You can tactfully explain why you’re qualified for the card to get approval.
In conclusion, if you do not get approval for a credit card, take advantage of the credit report and letter you received giving the specific reason or reasons that your application was denied. Improve in those areas and after sometimes, apply again. This time, you may get approved.