Almost all of us get literally hundreds of credit card applications in the mail and each and every one of them says that you have been pre-approved. It is natural for us to think that the application process is just a formal ritual and we are already approved to get a credit card. Stop right there. Read those lines again. You are thinking wrong. The offer says that your are pre-approved to Apply for Credit Card, not to actually receive one.
Yes, It is misleading and just another of the marketing gimmicks that credit card companies play. In fact, actual approval of your credit card will depend on several other things. Any of which can keep you from receiving the so called Pre-Approved Card. In this post I would like to go over some of the reasons for credit card application rejection and will try to advise you if anything can be done about them.
Why My Credit Card Application Was Rejected
In most cases the reason is your credit score. Other things can also go wrong with a credit card application but credit score is top of the list. Among other things that can be problem are
- Your Salary
- Your Employment length
- No Credit History
- Late Payments and Default on other bills and loans
Problem with credit history is that a no credit history is quite equal to a bad credit history . Having no credit history work against you just as much as a bad score. Since the credit card companies have no reference point to forecast how you will handle your credit account.
History of making late payments on utility bills and other credit instruments will also work against you. The credit card company wants to make sure that you are a good risk before they can issue a credit card.
If you have just started a new job, a credit card company may like to wait a while to make sure that you keep it.
There can be are other factors as well that will be considered if your credit history is less than perfect.
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