Having a delinquency in your credit score report may also make it more difficult to get permitted for a bank card as banks see you as a high-risk applicant. Whether or not you’ve missed a cost or skilled a monetary setback that led to your debt going to collections, having a delinquency in your report can considerably impair your credit score rating and make it very exhausting to get permitted for many bank cards. So, if you happen to do have a delinquency in your report, work to resolve the problem and settle any quantities in collections earlier than making use of for brand spanking new credit score.
5. You’ve utilized for lots of credit score not too long ago
Making use of for a number of bank cards in a short while is usually a crimson flag. Lenders can view this as an indication of desperation for credit score and fear that you simply’re borrowing greater than you may deal with, which may have an effect on your means to make the minimal funds.
As well as, each new credit-card software generates a tough inquiry that may decrease your credit score rating. Arduous credit score inquiries account for 10% of your credit score rating so it is very important solely apply for brand spanking new credit score merchandise you want, separately. If you happen to’re rejected for a bank card, wait between three and 6 months earlier than reapplying to restrict the influence of exhausting inquiries.
6. You have got an excessive amount of debt
If you have already got a number of debt via loans, mortgages and excessive credit-card balances, opening a brand new bank card could possibly be seen as a warning signal to lenders that you’re having issues paying down your present balances. They may flag you at a better danger of defaulting and reject your software.
On the subject of assessing your creditworthiness, lenders focus not simply on the quantity of debt you owe, but additionally have a look at how a lot of accessible credit score you’re utilizing. This is called credit score utilization, which makes up 30% of your credit score rating. Attempt to hold your utilization below 30% of accessible credit score for optimum constructive influence in your rating. For instance, if in case you have $10,000 in complete credit score accessible to you, attempt to not carry a stability of greater than $3,000 at any given time. This exhibits lenders you may handle your credit score responsibly.
7. There’s an error in your credit score file
If you happen to’ve been turned down for a bank card (even if in case you have a wonderful credit score rating), however don’t have any debt and a clear cost historical past, it’s price checking your credit score report for errors. Incorrect cost particulars could possibly be affecting your credit score rating—and, in flip, your eligibility to get permitted for brand spanking new credit score.
You possibly can determine this by reviewing your credit score report often to see what’s documented and ensure the knowledge is right. For no cost, you may take away incorrect data by submitting a dispute straight with the credit score bureau.
8. You don’t meet the age necessities
In Alberta, Saskatchewan, Manitoba, Ontario, Quebec and Prince Edward Island, you should be at the very least 18 years previous to acquire credit score. In all different provinces and territories, the minimal age is nineteen. If you happen to don’t meet these age necessities, your bank card software will mechanically be denied, so maintain off till you might be eligible.
