Here are a few reasons you can be denied for a credit card even with good credit.
- You don’t have an income. The Card Act of 2009 required card issuers to verify an applicant’s income and ability of repay. For that reason, someone without money coming in may struggle to qualify for a credit card or any other type of loan. This reason for denial is understandable since card issuers want to know they’ll be paid back for any money you charge, but it may be a tough pill to swallow for people with great credit and other positive factors.
- You’ve had trouble with credit in the past. Let’s say you have excellent credit now, but it wasn’t always this way. If you had financial issues with a card issuer or lender in the past, but have repaired your credit since then, you may be denied no matter what you do.
- Your credit is just “too good.” Ultimately there are times when people with really high credit scores can be denied credit because they are seen as unprofitable. Maybe a person hasn’t carried a balance on a credit card in years and they also prepay their mortgage religiously. Perhaps they have a long history of only carrying a balance on extremely low rates, such as a car loan, that come with 0% ARP due to a promotion.
- You have too many hard inquiries. Applying for too many cards within a short amount of time is seen as a bad thing. Since it typically means the consumer is trying to get more credit they can use or applying for rewards cards just to get the bonuses. If you are trying to access huge amounts of credit all at once, this could look as if you want to rack up balances you never plan to repay.
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