Reasons Why Your Card Application is Denied

Using card for booking hotel rooms has been an option for most travelers these days since it is hassle-free and faster transaction compared to traditional payment method. With this in mind, a lot of people choose to apply for a credit card - but unfortunately, not everyone gets approved.

There are scenarios where card applicant can get denied in her/his application. Here’s the common reasons why your credit card application has been denied. 

Poor credit history

One of the most powerful aspects for credit card application approval is the credit history. A good credit standing will help you get the credit card that suits your financial needs and lifestyle. Many credit companies take a look at the credit history of a card applicant and see whether they will approve it or not. However, if you have a poor credit history, your application can be denied even if you have a complete set of documents. 

To increase your chance of credit card application, you should make time to use helpful measures that can aid you not only in getting your desired credit card but having a good and credible credit history. Some of these measures are paying off debt and paying credit balances on time.

Incomplete requirements 

Typically, credit card providers require a set of documents to credit card applicants. These requirements may vary, which depends on the credit card company you choose. But if you have an incomplete document, your card application can be denied. 

Here are some of the common documents card companies asked for. Ensure that you provide a complete requirement when you submit your application:

• Accomplished credit card application form

• Valid ID

• Proof of income, such as pay slip, ITR, and statement account 

• Copy of business name registration and financial account (for business owner applicant)

Does not meet income requirements

One of the eligibility requirements of credit companies is the income. Each credit card has different income requirements since different cards have their own set of benefits and perks. Remember that the premium the card is, the higher income eligibility will be. 

When applying for a credit card, make sure to check carefully the income requirement. Only apply for a card that you meet the income requirement. This way, you can avoid being denied in your credit card application. 

High loan balances

Having a load of unpaid, high loan balances reflects how you manage your debt. This is a red flag to many credit card providers since they check if the card applicant has unsettled loan balances. In case that you have these unsettled balances, card providers may be hesitant in issuing you a credit card. 

Quick tips:

Follow these quick tips to help you get approved with your card application!

• Review credit reports before applying for a credit card 

• Correct any errors from your credit report 

• Settle high loan balances 

• Keep your credit card balance below 30%

• Make sure that you are eligible for the card 

Key Takeaway

Getting denied in a credit card application can be quite daunting and confusing. You will go through the process of application all over again. 

Avoid being denied in your credit card application by reviewing all the mentioned reasons in this article. So, when you opt for an AUB Mastercard, you can increase your chance of approval.