Credit News and Advice

Why was my credit card application denied?

Was your credit card application denied? Was it denied even after you received a pre-approved offer? Here are some common reasons why your credit card application may have been denied.

Note: Even if you apply online, you may not receive notice that your credit card application was denied for one to two weeks. If you do not receive instant approval from an online credit card application, you can call the card company in 24 to 48 hours to check on the status of your credit card application.

Common Reasons Your Credit Card Application May Be Denied

1. You have recently moved. A new address can trigger alerts on credit scores. Creditors like to see that you have lived in one place for more than a year, or at least six months.

2. You have not been at your current employer long enough. The longer you are at the same job, the better it looks to your creditors.

3. Your income may not be high enough. Most credit cards require a minimum annual income of at least $15,000. Depending on the card, some may require a higher minimum income.

4. You may have delinquent marks on your credit report. If you have been more than 30 or 60 days on any credit card or loan in the last year, your credit card application might be denied.

5. You have too much debt. If you currently have a lot of debt, especially credit card debt, or you are very near the credit limits on multiple credit cards, this can be a red flag to new creditors, even if your credit history is otherwise clean.

What to do if your Credit Card Application is Denied

The first step is to obtain a copy of your credit history to check for any errors. You may also see legitimate information on your report – such as a late payment or charge off – that could have been the reason for your denial.

If your credit score is accurate and looks good, you can try calling the credit card company to see if they will give you a specific reason your credit card application was denied.

You can try applying for a different credit card that accepts cardmembers without credit or with credit needing improvement.

If these options do not work, we recommend you wait six months before applying for a new credit card again. Spend the time paying down any existing credit card balances and fixing any errors on your credit report.