- Knowledge Centre
- |Loans andCredit
If you’ve ever been rejected for a credit card and wondered why, the first thing you shouldknow is thatthere is no one-size-fits-all reason for a declined credit card application. There aredifferent reasonswhyan application for a credit card might not be successful. This article will list some keyfactors thatcouldaffect your eligibility for a credit card and how an unsuccessful application can affectyour creditrating.It’ll also look at some ways to help improve your chances for a successful application.
Reasons why my credit card application was declined
Some of the reasons why a credit card application was declined can include the following:
- You’re not on the electoral roll
Lenders typically use the electoral roll to verify your identity. Being on the electoralregisterhelps themto do this. - Already made a lot of credit applications
When you apply for a credit card, a lender will perform a ‘hard’ search on your credithistory. Thisleavesa footprint on your record. A number of recorded credit applications in a short space oftime mayindicateto a lender that you’re financially overstretched, so they may not want to lend to you. - Your credit report shows late or missed payments
This may indicate to lenders that you’re struggling to repay debt. - Your credit report shows CountyCourt Judgments (CCJs), bankruptcy,IndividualVoluntary Agreements (IVAs)or DebtManagement Plans(DMPs)
These show lenders that you’ve been unable to repay debt, either partly or fully. - No credit history
If you don’t have any borrowing history, lenders may find it more difficult to assesshowresponsible youare when it comes to repaying credit. - Mistakes on your credit file
There could be mistakes on your borrowing record that could reflect poorly on you in alender’seyes. - You’re financially linked to someone with poor credit history
If you’ve applied for credit with someone else – for example, a joint credit card ormortgage – orhave aprevious joint credit agreement with them, you may have a financial association recordedon yourcreditreport. Even if you’re applying for new credit on your own, a lender may still view yourfinancialassociate’s credit history when assessing your application. If they’ve got poor credithistory, itcouldaffect your application for credit.
How will my credit rating be affected?
Your creditrating helps a lender todecide how creditworthy you may be – that is, how likely it is thatyou’ll make your repayments promptly. If you’re applying for a credit card, this will berecorded onyourhistory, whether as a ‘soft’ search (for example, when you’re asking for a price quotation)or a ‘hard’search (for example, when you make an application). Credit reports don’t record if you wererejected foracredit card, but they do list how many times you’ve applied for credit, so too manyapplications couldaffect your credit rating.
Can I improve my credit card eligibility?
There may be steps that you can take to improve your credit history. These include:
- Getting on the electoralregister
- Correcting any mistakes on your credit report
- Restricting the number of applications in a short space of time. Making sure you’ve gota healthycredithistory. This includes making payments on time.
Removing financial associations where they no longer apply. In some cases, it may still bepossible togetacredit card with bad credit history, or with nocredit history.
If you’ve applied unsuccessfully for a credit card, you may want to check your . Free for the first30 days then £14.95 monthly, the report lets you view your borrowinghistory, whilethe score gives you an indication of how creditworthy a lender may find you.
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