Skip to content
ScoreSense
  • Available Features
    • Credit Scores & Reports
    • Credit Insights
    • Credit Monitoring
    • Identity Theft Monitoring
    • Credit Tools
    • Mobile App
  • Blog
  • In The News
  • Credit Journeys
    • College
    • Military
    • Home Buying
  • Contact
  • FAQs
  • Reviews
  •   Sign In
  • Get My Scores
Main Menu
  • Credit Education
    • Credit Basics
      • Credit Bureaus
      • Types of Credit
    • Credit Scores
      • Credit Score Factors
      • Credit Score Tips
    • Credit Reports
      • Negative Credit Items
      • Credit Report Errors
      • Credit Report Disputes
    • Credit Monitoring
      • Signs of Credit Fraud
      • Credit Fraud Recovery
      • Credit Security Tactics
    • Credit Repair
      • Credit Repair Scams
    • Build Credit
      • Establish Credit for Teens & Students
    • News & Trends
  • Fraud
    • Identity Protection
    • ID Theft
      • Child ID Theft
      • Tax ID Theft
      • Medical ID Theft
    • ID Theft Recovery
    • Data Breaches
    • News & Trends
  • Personal Finance
    • Loans
      • Home Loans
      • Auto Loans
      • Student Loans
      • Personal Loans
      • Business Loans
    • Budgeting
    • Saving
    • Debt
    • Banking
    • Investing
      • 401K & IRAs
      • Stocks & Mutual Funds
    • Taxes
    • Life Events
      • Marriage
      • Parenthood
      • Retirement
      • Divorce
      • Death
      • Bankruptcy
      • Job Loss
      • Natural Disaster
    • News & Trends
  • Credit Cards
    • Interest Rates
    • Denied Credit
    • Card Types
    • Manage Balance
    • News & Trends
  • Credit Tools
    • Credit
      • Monitoring & Alerts
      • Credit Scores & Reports
      • Credit Insights
      • Credit Specialists
      • Score Simulators
    • Identity Theft Insurance
    • Identity Theft Monitoring
    • Sex Offender Monitoring
  • COVID-19
Search

CreditSense > Credit Cards > Denied Credit > Why Was I Denied Credit? Five Possible Reasons Being Denied a Credit Card

Why Was I Denied Credit? Five Possible Reasons Being Denied a Credit Card

Picture of ScoreSense

ScoreSense

  • August 25, 2020

Americans apply for credit for a wide variety of reasons, such as to buy a home, car, boat or RV. People also often apply for credit cards, whether a Visa, MasterCard, American Express or store-branded card.

Unfortunately, not every request for credit is granted. This often leads people to wonder, “Why was I denied a credit card?” or “Why can’t I get approved for a credit card?”

Why Can’t I Get Approved for a Credit Card?

There are a number of reasons you may have been denied a credit card. Here are five common reasons for denied credit:

1. Your income is too low. Income doesn’t affect credit scores, but that doesn’t mean it can’t impact credit applications. You could be denied credit if your income is below a certain level or if it’s sporadic — for example, if you’re self-employed or work part-time and your income fluctuates from month to month.

Unfortunately, credit card issuers don’t publish minimum income requirements, which can vary by issuers and credit applicants. 2 Issuers are mainly trying to determine if an applicant’s income will be high enough to enable on-time payments based on the credit limit assigned.

2. You’re overextended from a credit standpoint. The amount of credit you are currently using in relation to your total available credit — or your credit utilization — accounts for up to 35% of your credit score. This is because a high credit utilization ratio indicates to credit issuers that you could miss credit card payments in the future.

If you’re planning to apply for new credit soon, it’s generally a good idea to keep your credit utilization ratio below 30% – with 10% or below being the ideal. This could help decrease the chances of your credit request being denied.

3. You’ve missed payments or filed for bankruptcy. Payment history accounts for up to 40% of your credit score, making it even more important than credit utilization in determining your score. For example, a single 30-day payment delinquency could potentially drop your score as much as 100 points in the short term. Meanwhile, declaring bankruptcy could potentially lower your score by up to 240 points or more. It all depends on how high your score was before you became delinquent or filed for bankruptcy. Typically the higher your credit score, the greater the negative impact.

The good news is that negative items like payment delinquencies and bankruptcies fade over time. Delinquent payments will drop off your credit report after seven years, and bankruptcies drop off after seven or 10 years, depending on the type of bankruptcy.

Keep in mind that recent payment delinquencies are more damaging to your credit than older delinquencies. For example, if you were 30 days late in paying a bill six months ago, this will hurt your credit more than if you were 30 days late paying a bill six years ago.

4. You haven’t established a credit history yet. If you don’t have a credit file, or if your credit file is too thin, then there’s not enough information (called records) for the scoring models to use to provide a credit score.

While some scoring models require six months of activity, VantageScore 3.0 can provide a score with just one month of activity with an active account.

To establish your credit history, you might apply for a credit card. Use it for small purchases, and make your payment on time. Be smart about the amount of credit you use to ensure it’s 30% or less of the credit limit. 

5. Your identity has been stolen. Fraudulent credit accounts can negatively impact your credit score, especially if the accounts are maxed out or payments are delinquent. This is why it’s important to review all three of your credit reports to catch any fraudulent activity. 

If you see anything incorrect or suspicious, from a wrong name to an account you didn’t open, place a fraud alert and credit freeze on each of your credit reports. You’ll also need to file a dispute with the credit bureaus to have the erroneous information removed. 

Regular credit report monitoring is the best way to detect inaccurate information – and protect your credit scores. If you’re not already monitoring your credit report for changes or unauthorized activity, being denied credit is a good reason to start. Take note: checking your own credit reports and scores will never hurt your credit!

Be Proactive If You’re Denied Credit

If you’re denied credit, the credit issuer is required by law to explain why. Don’t hesitate to contact them and find out the reason for the denied credit. This way, you can take steps to be approved the next time you apply.

Smart Moves

Get your credit scores and reports from all three bureaus instantly.

Take Action

Shield your credit and finances with up to $1 million identity theft insurance*.

Get Protected

Find out how your score could change if you pay down a credit card or miss a mortgage payment.

Explore Tools

RELATED

How to Defer Your Mortgage During the Coronavirus Pandemic

Will Losing My Job Because of the Coronavirus Hurt My Credit Score?

How to Tighten Your Budget During the Coronavirus Lockdown

What Should I Do If My Information Is Part of a Data Breach?

Tax Season is High Risk

Why Are My 3 Credit Scores Different?

6 Ways to Spend Less This Holiday Season

What is a Write-off and How is it Different From a Charge-off

You are more than just 1 credit score.
Get your credit scores and reports from all three bureaus instantly.
Get My Scores

What's Your Credit Score?

Get Your credit scores & reports from all 3 bureaus, Instantly!**
Get my scores

Sign Up for Our Credit Newsletter

ScoreSense

  • Have an Account? Sign In
  • 1-800-972-7204
  • Mon-Fri: 8AM to 8PM CT
    Sat: 8AM to 5PM CT
    Sun: Noon to 6PM CT
  • customercare@scoresense.com
  • 3400 N Central Expy Ste #110-298
    Richardson, TX 75080

Company

Contact Us
Terms and Conditions
Privacy Policy
OTL*ScoreSense

 

Facebook Youtube

Features

Credit Scores & Reports
Credit Insights
Credit Monitoring
Identity Theft Monitoring
Credit Tools

Resources

Learn About Credit
What is a Good Credit Score?
Credit Score Range

Mobile Apps

© 2001-2025 One Technologies, LLC. All rights reserved.

ScoreSense® is a trademark of One Technologies, LLC.

Do not sell/share my information |

*Identity Theft Insurance underwritten by insurance company subsidiaries or affiliates of American International Group, Inc. The description herein is a summary and intended for informational purposes only and does not include all terms, conditions, and exclusions of the policies described. Please refer to the actual policies for terms, conditions, and exclusions of coverage. Coverage may not be available in all jurisdictions.

**After verification of your identity, your scores are available for secure online delivery in seconds.

 

Scroll to Top