Having a delinquency in your credit score report may also make it tougher to get accepted 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 laborious to get accepted for many bank cards. So, when you 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 just lately
Making use of for a number of bank cards in a short while generally is a pink flag. Lenders can view this as an indication of desperation for credit score and fear that you just’re borrowing greater than you may deal with, which might have an effect on your capacity 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 you will need to solely apply for brand spanking new credit score merchandise you want, one after the other. When you’re rejected for a bank card, wait between three and 6 months earlier than reapplying to restrict the impression of laborious inquiries.
6. You might have an excessive amount of debt
If you have already got a variety of debt by means of loans, mortgages and excessive credit-card balances, opening a brand new bank card may very well 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.
With regards to assessing your creditworthiness, lenders focus not simply on the quantity of debt you owe, but in addition take a look at how a lot of obtainable credit score you’re utilizing. This is called credit score utilization, which makes up 30% of your credit score rating. Attempt to maintain your utilization underneath 30% of obtainable credit score for max optimistic impression in your rating. For instance, in case you have $10,000 in complete credit score out there to you, strive to not carry a steadiness 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
When you’ve been turned down for a bank card (even in case you have a superb credit score rating), however haven’t any debt and a clear cost historical past, it’s price checking your credit score report for errors. Incorrect cost particulars may very well be affecting your credit score rating—and, in flip, your eligibility to get accepted for brand spanking new credit score.
You’ll be able to determine this by reviewing your credit score report frequently to see what’s documented and ensure the data is appropriate. For no cost, you may take away incorrect info by submitting a dispute instantly 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 not less than 18 years outdated to acquire credit score. In all different provinces and territories, the minimal age is nineteen. When you don’t meet these age necessities, your bank card software will mechanically be denied, so maintain off till you might be eligible.
