How you can Stop your Credit Card Application being Rejected
Posted May 7th, 2008 and last modified March 12th, 2013Bad Credit Card Record?
If you’re afraid you have a bad credit card record, or simply can’t comprehend why your constantly getting rejected credit card applications, this article is for you to help get around these issues.
I was inspired to write this article after I received this post:
After applying for Commonwealth and Qantas Amex cards, both became rejected. I don’t really understand why, I’m earning about $63000 a year, and I have no mortgage, and strangely enough, a flawless credit history. The most irritating thing is neither firm explained why I was rejected. Do you have any suggestions?
Check your Official Credit History:
For starters, you should check to see if you really do have a perfect credit history, and if you don’t, find out why. You may surprise yourself – clerical errors are not uncommon in peoples credit card histories.
If you find anything odd in your credit report, you should make further inquiries into it with the firm. Don’t be afraid to ask them why your application became rejected as well, it won’t hurt, and you may possibly find the root cause.
Once you have improved your credit file you may be able to reapply for another credit card that does offer you additional benefits. However, you first need to understand why you were rejected for the credit card.
Order a copy of your credit file
Receive email alerts whenever specific changes occur on your credit file for 12 months. You also receive a copy of your credit file despatched within one working day.
Receive your credit file with information on:
- Details of consumer credit enquiries
- Details of overdue consumer credit accounts
- Commercial credit enquiries
- Details of overdue commercial credit accounts
- Bankruptcy & Court Judgements
- Writs & Summons
- Information on your current relationship with a credit provider
Constant Applications after Rejection:
Whatever the reason your first credit card application became rejected, it will be present on your credit card history. Firms don’t have the time or resources to individually check the details of each of it’s applicants prior rejections.
Therefore, if you have one rejection, a credit card issuer may simply base their rejection on that, creating a steady stream of invalid applications. Once you have been rejected though you should wait at least three months before you apply for another card. Some banks also run automated rejections if you have applied for another card within being rejected of a week for another card.
It works the other way as well – if you start with an incredibly solid spending/payment record for your credit card, providers will fiercely aim for your application and approve it at the drop of a hat.
Therefore, make sure you have a relatively clean financial history especially before applying for your first credit card.
Factors you may not take into Account:
American Express along with a few other credit card firms, analyse your housing situation and employment records.
So if you are moving houses frequently, have just settled into a new house, or have been rapidly in and out of jobs, alarm bells go off and your application will get a nasty rejection.
Also, before you apply try to do enough research to make sure you meet all of the minimum requirements. A rejection negatively impacts your credit file so you should avoid it by not applying for cards that are impossible for you to be approved. You should also strongly consider a credit repair service to help you improve your credit rating.
6 Tips to help your Credit Card Application Approval:
- Check your credit card history – If it’s bad, wait over 6 months till your next application.
- Even with a good history, if your first credit card is rejected, wait at least 2 weeks till your next application to avoid the automated denial of your application. Credit card companies don’t like people who are desperate for credit and a good sign of that is lots of applications in a short period of time.
- Try to clean up your financial situation if it’s not too sharp, whether it’s mortgage or any bank payments.
- Ask the credit card provider who rejected you why? Best take it straight to a branch for face to face customer service, since your online query is much more likely to be a vague response or simply ignored.
- Wait until you’ve settled into a new job or house.
- Consider a credit repair service to fix your credit rating.
Rejection for a credit card can be for a few different reasons, not only for having bad marks in your credit file. You can probably contact the credit company to find out the exact reason you were rejected. You might not meet the minimum requirements like age or income. If that is the case there is no way around the rules. However, credit issues can stem from having overdue or defaulted credit accounts. It is important that you verify that all information in your file is correct, if not take steps to fix the issues. If your card has been used fraudulently you should be able to correct it and restore your credit rating.
Bad credit rating credit cards may be your only option if the problems with your file are in fact your fault. The current negative marks on your card will stay on it for a long time. For example, when you apply for financing and credit it stays in your file for five years. Overdue accounts, writs, summons and judgments are also kept for five years. Bankruptcy files will stick with you for seven years.
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19 Responses to How you can Stop your Credit Card Application being Rejected
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i am overseas student. i applied many time for a credit card to commonwealth bank thought i have got two account with them but i don’t know why they rejected me. i think their one of their condition is have to be permanent residence but i am an overseas student. in that case should i write down that i m a permanent residence here or what. i have got the proof that one of my friend when he write it that he has got the permanent residence the with 4 days he has got the card without asking any question. can u give me a solution for that. bye
Contact the branch online or by phone and ask for specific details to why it’s being rejected.
If you say you are a permanent resident but aren’t, they will surely check up to see if that’s accurate.
If they find you lying, it’s very unlikely they’ll approve you anytime soon.
Hopefully that’s what you wanted to know, If not, don’t hesitate to ask again.
Thanks
I’m 19 and i have a 14th daughter so i do not work i receive $1000 a fortnight and do not have any previous credit history. I have been rejected for a store card and through commonwealth bank credit card. I want to know how i can get a credit card when i have no previous credit history
i have 1 outstanding bag credit ($300) to my name which has already been paid up last year,but i understand the record stays.
I have tried applying for credit cards but kept on getting rejected, i earn $80000 per annum .
Would you know of any institutions who would give us a 2nd chance to build up a good credit rating?
regards
Yes its bit annoying. I earn over 500K a year..and have a $40000 bad debt against my name from a court ruling I was out of the country for. Haven’t been able to get a loan since. I later appealed and won…doesn’t make a difference stuck with it for 5 years i told.
hi! I have using Hsbc for long ! (7) yrs…. N just wondering y my application for credit card being rejected thrice ! Would u give the strong reason in detail! Thank you !
Hi Rai. Thanks for your question and sorry for the delayed response, but your guess is as good as ours. There are a couple of common reasons why applications get rejected: failed point score, credit history and adverse bureau. Sadly the banks don’t give much of a reason as to why they knock back an application, but I wrote an article on this topic after Bankwest rejected my credit card application – this article may be of help. Jacob.
Yes this is very annoying I own 24 Residential houses but yet I cant get a credit card as a result of a court ruling for $4800 I have since paid the debt too. Does anyone know who u can employ to clean up credit file?
Hi Jack. You will want to look in to a credit repair service. Please consult our guide on credit repair services for further information. Thanks for your question.
is there a service available to detect anyone trying to use your name when applying for a Credit Card?
I of heard of a service which you pay and they monitor applications. Anyone using your name as a part/full card holder when applying,the service provider will ring you first to verify if it is ok.
Do you have a number for this service?
Hi Andrew. Please consult our credit alert review page. Cheers.
I applied for one of the American Express credit cards online, to get better cash back rewards. I have very good credit extending back almost 30 years, several major credit cards that I have had for over 10 years each, I have worked for the same company for 28 years, I have had the same cell phone number and no landline for the past 10 years, and I recently bought a new house. I also have high income and assets. I was very surprised because American Express said they could not approve my credit card application because they said my phone number wasn’t on my credit report (I know this is incorrect because I recently went over my credit report with my bank when I got the mortgage for my new house). American Express insisted that they needed to personally talk to my bank and to get information about the account numbers and current balances of all my bank accounts—I refused to allow this because it sounded so sketchy & I could not believe any credit card company wouldn’t offer me credit. American Express also claimed that they didn’t even know the name of my bank–but wouldn’t this be on my credit report, which they apparently had just pulled? I thought it was a bizarre request, very suspicious. Any idea what is going on? Is this a scam? thanks, Karen
Hi Karen. I have never heard of anything like this happening before. I don’t believe it’s a scam, but sometimes there can be a break down in communication. If there has been a enquiry mark on your credit file, you may want to take the issue to higher authorities to get the mark removed, if there is no enquiry on your credit file, you may want to try another provider. Here’s some information on resolving a dispute with your credit provider. Thanks for your question.
Hi, my husband just applied for a Citibank card and was conditionally approved pending confirmation of ID. Then out of the blue some 4 days later he received an auto generated email saying he was declined. The only thing I can think of is that he used our old address as he did the app whilst we were moving house. We were 6 years at our previous address. Is there anything we can do?
Hi Nik. Get in contact with a Citibank representative asap. They may be able to assist you to get the application approved, or get the enquiry mark removed from his credit file. Jacob.
I have a paid Part 9 agreement that comes off my file in Dec 2014 and earn $65k per year but am renting long term. Which company will give me a credit card in Australia. I have taken a few payday loans which have been paid on time.
Hi SK. You will need to speak to a lender directly about this as credit cards require that an applicant has a good credit rating. If you’ve gone down the path of taking a loan and repaying it on time, this will prove that you have gotten back on track with a history of good financial management; however, it really depends on the lender as to whether they will provide a credit card – no one lender is likely to provide a card over another for someone in your situation. Thanks for your question. Jacob.
I had a bad credit history going back in 2007. But all my debt has been fully paid. What is my chances of getting approve for a credit card again?
Hi Mr. E. Please watch this video on bad credit and credit card applications, ’8 Questions with a financial advisor‘. You may want to order a copy of your credit file. This will let you see exactly what the lender sees when you apply for a credit card. If you’re worried about the status of your credit file, or your chances of getting approved, can you please speak to a representative at the lender of your choice after you’ve compared cards, they will be able to help you further. Jacob.