Saturday, November 26, 2022

Why Did My Credit Card Application Get Denied

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Why Did I Get Denied For A Credit Card

Why was my credit card application denied? How to go from denial to approval

If a lender denies your credit card application, it’s easy to find out why. Lenders must provide you with what’s called an adverse action letter explaining why they denied your application. In addition, the lender should include instructions for requesting a free credit report. If they don’t, you can request your free credit report from Experian.

Your adverse action letter will likely list one of the following reasons your credit card application was denied:

If Your Application Is Declined Because Your Identification Information Couldn’t Be Verified

Make sure your name, address and other information provided on your Apple Card application is correct. If you find inaccurate information, re-enter the information as needed.

If you are asked to verify with an ID, follow these steps:

  • Make sure there is nothing between your device’s camera and your ID that could obscure any part of it.
  • Check that the Date of Birth, Last Name, and Address on the ID match the information you entered for your Apple Card application.*
  • Make sure the ID hasn’t expired.
  • After you complete these steps, submit your application again. If your application is declined again for the same reason, contact Apple Support.

    Your credit score won’t be impacted if you’re declined, or don’t accept your offer. Your credit score might be impacted if your application is approved and you accept your offer.

    You can apply for Apple Card again, but you might receive the same decision.

    If you want to receive a different decision on your application when you apply again, you should review your credit report to see if you have conditions that might result in a declined application and then check for these common errors in your credit report.

    *If the information on your ID doesn’t match the information you entered for your Apple Card application, try to apply again after you update your ID.

    A Good Credit Score Isnt Everything

    If you are a regular reader of this blog or others like it, you probably have a obsession with your finances including your credit health. You check your credit reports at least once a year and perhaps use a free monitoring tool to track your credit score.

    Weve been taught to get this number into the 700s or beyond so that we always qualify for the best interest rates.

    Although its true that its important to have a good credit score, your score is just one of many factors a bank will use in deciding to extend you credit.

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    What You Can Do If Your Application Is Approved With Insufficient Credit Or It’s Declined

    If your application is declined, a message with an explanation is sent to the primary email address associated with the Apple ID you used to apply for Apple Card. The message might show your credit score. If information provided by a credit bureau contributed to your application being declined, you can request a free copy of your credit report from that credit bureau using the instructions in the email you receive.

    If you have a freeze on your credit report, you need to temporarily lift the freeze before you apply for Apple Card. Learn how to lift your credit freeze with TransUnion.

    Why Your Application Is Pending Or In Review

    Why You Should Get A Credit Card!

    Goldman Sachs might need more time to review some applications, or request more information to verify your identity. After you apply, you are shown a message in Wallet app that will indicate your application is in review. Updates regarding your Apple Card application will be sent to the primary email address associated with your Apple ID.

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    What To Do After A Declined Credit Card Application

    • Dont be in a rush to apply again You got denied for a reason, and applying for the same credit card too quickly isnt likely to help your situation. Improving your credit standing can take time. If you do want to continue applying for credit cards, keep in mind that your credit score will take a hit each time you apply, and too many applications is a red flag of desperation to card issuers. So make sure you hedge your bets on which cards youre likely to get approved for, and avoid the ones you know you wont get.
    • Apply with a different issuer Different issuers use different underwriting criteria, which means applying for a card from a different bank than the one that denied your original application might result in you getting approved for a different offer .
    • Submit a reconsideration request or call the reconsideration line Though not many people know about this well-kept secret, credit card issuers are required to reconsider your application upon request if you have new or additional information to provide, given that it is provided in a timely manner. If you felt that you were unfairly or illogically denied a credit card, you should definitely consider this option. It can typically be done by phone or in writing, depending on the card issuer.

    Alternative Ways Of Getting A Credit Card

    If everything we suggest above has failed, there are still two options available to obtain a credit card. While neither of these will make you the primary account holder for the card, either will allow you to obtain a card, and may allow you to build your credit card history and increase your chances of having your own credit card in the future.

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    The Primary Cardholder Deactivated Your Card

    The Issue

    If youre an on another individuals credit card account, the cardholder has control over your ability to use the card. Primary cardholders can eliminate authorized user privileges at their discretion.

    Plus, when a primary cardholder reports his or her card as lost or stolen, its likely that all authorized user cards associated with the account would also be deactivated.

    The Solution

    Always keep a clear line of communication with the primary cardholder. If possible, let him or her know when and how you plan to use the card. And if youre expected to pay for any charges you make, you should probably keep up your end of the bargain or the primary cardholder may decide to give you the boot.

    You Have A Thin File Or Limited Credit History

    Why was my credit card application denied?

    Your credit card application could be denied if you’ve never had credit before or if you don’t have much experience with credit.

    Your credit report must contain at least one account thats been active in the past six months for FICO to generate a for you. Without a credit score, the credit card company is more likely to deny your application because it can’t gauge your creditworthiness.

    If you’re just starting out with credit, consider a secured credit card or student credit card to get your credit history started.

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    No Recent Late Payments Or Collections Activity

    Missing a single credit card payment or forgetting about a medical bill that ultimately ends up going to collections isnt the end of the world. Such a slip might reduce your credit score by 10 or 20 points for a year or two, but it wont take you from 750 to 500 overnight.

    It might, however, prevent you from getting new credit. If you have potentially negative items on your credit report like late payments or collections accounts, this could cause you to be denied a new credit card.

    Related: Behind on bills? How to catch up.

    Find Out Why Your Credit Card Application Was Denied

    You should receive an adverse action notice from the card issuer, often within 7 to 10 days after your application is denied. The notice will state why your application was rejected.

    Factors that typically result in a credit card application rejection can include the following:

    • Your credit scorea gauge of creditworthinessis too low.
    • You have a record of delinquent payments.
    • You have too much debt relative to your income.
    • Youve recently submitted multiple applications for credit.
    • You have a thin credit history .
    • Theres an error on your credit report thats having a negative impact.

    Its often not just one thing. Sometimes there are different things that work in tandem, says Ted Rossman, senior industry analyst at Bankrate.com, a personal finance website.

    When you know why your credit card application was declined, then you can take the next step.

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    Basics Of Getting The Apple Card

    There are a few basic requirements for getting the Apple Card. To start, the card is only available to current users of eligible Apple devices with an Apple ID. You must also be at least 18 years old and a U.S. citizen or lawful resident with a U.S. residential or military address.

    Additionally, Goldman Sachs, the cards issuer, will need to check your credit report before making an approval decision so if youve frozen your credit report, youll have to unfreeze it before you apply. You may also need to verify your identity with a drivers license or state-issued photo ID .

    Youll likely get an approval decision instantly in the Wallet app and, in the case of a denial, an explanation as to why you were not approved but you may see a message saying your application is in review. This means Goldman Sachs needs more time to consider your application or verify your identity.

    If your application is in review, Apple says you should expect to hear back in one to three business days, though some users have reported waiting longer. Unfortunately, there is currently no way to check on the status of your Apple Card application prior to a decision, but you may receive updates about your application or requests for additional information via email or phone call.

    Dont Apply For Another Credit Card Right Away

    6 Reasons Why Your Credit Card Application May Be Denied

    If youve just been rejected for a credit card, its important not to rush and reactively apply for another card right away . Every credit card application will result in a hard pull on your credit file and temporarily impact your score. Applying for multiple cards in a short period of time can also be considered a red flag by banks who may view it as credit hungry behaviour and potentially consider you as a riskier applicant whos desperately in search of new credit.

    Its always best to space out your credit card applications to be a few months apart from each other.

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    What Can I Do If My Credit Card Application Is Denied

    If youve ever applied for a and been denied, youre probably wondering whether you did something wrong. Lets face it rejection hurts, even if it wasnt a personal decision.

    Still, it makes little sense to wallow in embarrassment when you could learn from the situation instead. Chances are, your application was denied for good reason. The best thing you should focus on now is figuring out what that reason is and working to rectify it.

    Offers matched to your credit profile

    Here are a few of the most common reasons credit card applications are denied:

    In this article

    You’re Not Old Enough To Get A Credit Card

    If youre under age 18, your application is likely to be denied because you’re under the legal age to get a credit card. There are some exceptions. For example, you may be able to get approved for a credit card if you have your own income and youve already been added as an to your parents credit card.

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    Theres Some Information Is Missing

    On occasion, it might be something simple such as missing information thats holding you back from being approved. It could have been an honest mistake such as you forgetting to fill out a box when you applied online or the credit card provider may not be able to verify your identity.

    The good news is that quite often when its just missing information, the credit card provider will call you to get what theyre missing. If youve applied for a new card but werent approved right away, you could call them just to see if you need to provide them with any additional information to speed up the application.

    First Find Out Why Then Explore Your Other Options For Obtaining Credit

    American Express DENIED My Credit Card Application! Hereâs Why!

    If you’re in college and want to get a credit card for emergencies or to start building your credit, a student credit card can be an excellent option. They’re easier to qualify for if you don’t have an established credit history, and you can get one even if you only have limited income from a part-time job.

    However, your application isn’t guaranteed to be approved. Depending on your situation, you could be denied because of your credit history, student status, or for other reasons. If you’re wondering, “Why am I getting denied for student credit cards?,” here’s what you should know.

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    Can I Apply For A Credit Card That Declined Me

    Getting the thumbs down for a credit card can be disheartening. But the good news is there are steps you can take to boost the likelihood of approval next time around.

    This is why its worth having a chat with the card provider whos turned you down. Once you know the problem, you can look at ways to fix the issue.

    That said, its important not to launch into another application straight away. Each application you make for credit is noted on your credit record something that as weve seen, lenders are eager to take a look at. When a large number of credit applications appear on your credit record, lenders may start asking why.

    A better strategy is to give yourself breathing space to work out why your application was declined and work on improving your chances for future applications. This can also buy you time to shop around and decide whether you want to reapply for the same credit card, or if you could get a better deal elsewhere.

    In the meantime, there are several steps you can take to boost your chances of getting the green light for a credit card in future. The first is to stay in the same job lenders normally like to see a record of job stability.

    If your income is the sticking point, think about ways you can pick up a bit of extra cash, either through overtime or maybe starting a side hustle. This can give your income an uptick and help you grow savings, both of which may strengthen your application with a card provider.

    Adequate Employment And Income

    Banks look at your likelihood of repaying a loan based on past behavior and also your ability to repay the loan now . Youll be asked to list your annual income and employer. For a larger loan, the bank will verify this data. They may not for a credit card, but dont expect to be approved for a $10,000 limit card if your annual income is only $20,000.

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    You Don’t Have Much Credit History

    When your credit file is a blank slate, it’s hard to find credit cards that you’ll qualify for. Credit card companies are understandably wary about approving those without much credit history, as there’s no way to know whether those consumers will be responsible cardholders or will run up balances that they don’t pay back.

    What to do — If you know anyone with good credit who is willing to cosign a credit card application for you, they could help you get the card you want that way.

    You can also check out secured credit cards. With these cards, you pay a security deposit, so consumers with poor or non-existent credit histories have an easier time getting approved.

    The Issuer Thinks Youre A Card Churner

    Credit Card Application: Things To Do If You Get Denied ...

    Some issuers shun potential borrowers who appear to sign up for cards and ditch them soon after they earn bonus rewards. For example, Chase denies many of its cards to applicants who have opened five or more accounts from any bank or issuer within the past 24 months a practice informally known as the 5/24 rule.

    Additionally, Bank of America is rumored to limit customers to no more than two of its cards in two months, three cards in 12 months and four cards in 24 months. Other issuers such as Citi and American Express also have restrictions designed to cut down on the number of times cardholders can get their sign-up bonuses.

    Dan Mahoney, president of True Square Financial in Atlanta, said card churning rules have nothing to do with your risk of missing a payment while juggling many card accounts, but rather your lack of loyalty to a specific card.

    It reflects the banks belief that customers who frequently open new cards are less profitable, because they tend to move on to the next hot product after a few months, he said.

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    How Your Initial Credit Limit Is Determined

    To determine your initial credit limit, Goldman Sachs uses your income and the minimum payment amounts associated with your existing debt to assess your ability to pay.

    In addition, Goldman Sachs uses many of the same factors that are used to assess whether your application is approved or declined, including your credit score and the amount of credit you utilize on your existing credit lines.

    Learn how you can request a credit limit increase.

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