12 Possible Reasons Your Credit Card Application Was Denied

12 Possible Reasons Your Credit Card Application Was Denied

If you’re approved for a credit card, you’ll typically find out right away. When you’re denied, however, it’s a completely different situation. Credit card issuers rarely tell you on the spot that your credit card application was denied. Instead, they send a letter, an adverse action letter, within 7-10 business days of your application that gives more details about the decision.

The adverse action letter will give you the specific reason or reasons your credit card application was denied. The letter will also include instructions for getting a free copy of your credit report if one was used in the decision. While you’re waiting to get your letter, here are some possible reasons your credit card application could be denied. If you’re familiar with your credit history, you may be able to guess which of these explains why you weren’t approved.1

Having too much existing debt can make it harder for you to take on a new payment. If your loan loan balances are high, credit card issuers might be hesitant to give you a credit card. Paying down your loan balances can improve your chances at getting approved.2

Your Credit Card Balances Are Too High

Credit card companies want to see that you’re only using a portion of the credit available to you. If you’re using too much of your available credit, especially if you’re maxed out, you can count on having your credit card application denied. Keeping your balances below 30% is best for your credit score and your ability to get approved for a new credit card……….Read More>>

Source:- thebalance