If your credit report doesn’t meet the lending criteria of a provider, your application for a new credit card or credit limit increase will be rejected. some of the credit history details that could lead to a credit card application being denied includes:
There are some companies that cash in on the relationship between credit history and application rejection and approval by offering to improve or “repair” your credit history. These “credit repair” companies charge you a fee to look at your credit history and offer advice, but government bodies have warned that there are more complaints about them than there is praise.
If your application for a new credit card is denied, it’s important to look at all the factors that could have affected this decision, including credit history, your employment and income, and even your residency status.
Case Study: Ban Ki’s Bad Credit
Ban Ki has credit card debt of $20,000 split between three different credit cards, and a personal loan with $10,000 still owing. He has only paid the minimum on each debt for the past 12 months, and has made late payments several times.
He applies for a balance transfer onto a super premium credit card. After reviewing his credit report, the provider rejects his application because he already has $30,000 of debt that he is struggling to pay on time each month.