Why you may be denied for a credit card even with Good Credit Score
Building Good credit score is the target, focus, and dream of every Credit card user. Building your Credit score can be fantastic in getting credit card application approval. The same thing applies when you pay your bills on time. But when you do all of these, don’t max out your credit cards. May probably concentrate on building different types of credit.
Those you have good credit score most times get rewarded for that since it isn’t easy to come by. It takes the same criteria t get a good credit everywhere. However, having a good credit score isn’t all it takes to get a credit card application. Am not disputing the fact that good credit score comes with lots of perks and rewards.
Most especially when your FICO scores are 740 or more, a high Credit score can help you get some good car rates, loan or home mortgage loan. Though, these scores may help you get lower scores for insurance rates.
Am sorry to break this bad news again that good credit doesn’t really guarantee that you’ll qualify for a loan or a credit card application. It’ll come to many as a surprise because many already assume that perfect credit card is a passport to any credit card you want stated John Ulzheimer, an FCRA credit expert.
Before you burst into an argument, there’re actually many reasons why you can be denied a credit card or loan irrespective of your high credit Score.
No Adequate Income
According to the Card Act of 2009, Card issuers always verify the ability of the card applicant to repay. So, if you don’t have a source of money coming your way, you may have to struggle to qualify for a credit card or for any type of Loan.
I think everyone will understand this particular reason since the issuers of the card will want to be sure that card owners can pay back for the money they charge.
But there’s a way out if you don’t have a good income. You can use that of anyone in your household. This is because the card issuers can request for a ‘’household income’’. For example, if you’re not working as a wife and your husband works, you can use the household income and you’ll qualify for a credit card.
If you have had Problem with Credit card in the past
Despite the fact that you now have good credit. It won’t erase the fact that you’ve one have financial issues with a card issuer in the past. Even though you’ve repaired your credit, you may still be denied credit card.
The Credit card issuers always keep a record of these facts so as not to make the same mistake again. It happens more when you’ve discharged the debt in bankruptcy with them before. The card issuers will remember even if you’ve rebuilt your credit scores.
Many bad Inquiries
With your Good credit Scores, you may be denied a credit card if you’ve lots of bad inquiries. It can come as applying for too many credit cards within a short period of time. The Card issuers will think you’re trying to get the card for only the rewards and the bonuses.
Also, attempt to access any credit card at a go will seem you want to accumulate balances that you can’t repay. In addition, if you’re signing up is just to get the credit card bonuses, then, you won’t make a good customer for the company. This can be seen as taken undue advantage of the Loopholes of the credit card rewards without intending to use the credit card in the long run.
Having ‘’Too Good’’ Credit
Those with ‘’too Good credit scores may be denied of a credit card. Considering the fact that they may be seen unprofitable for the card issuers. It can occur when the person hasn’t carried a balance on a credit card for a long time. And Most times, they’ll repay their mortgage religiously. They can even go as far as carrying a balance on very low rate loans such as car loan with zero percent APR. You must know that card issuers are looking for customers that can provide them with income or revenue.
High credit Utilization
This is a great determinant of your credit strength. It makes 30% of your FICO score. The higher you owe in relation to our credit limits, the more your credit score suffers.
High credit card utilization can cause a denial of a credit card. An owing lot of money makes the cardholders won’t want to have more debt on you. But to have more credit card access, you’ll have to pay your balances down.