Having a delinquency in your credit score report also can make it more difficult to get authorised for a bank card as banks see you as a high-risk applicant. Whether or not you’ve missed a fee or skilled a monetary setback that led to your debt going to collections, having a delinquency in your file can considerably impair your credit score rating and make it very exhausting to get authorised 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 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 is usually a purple flag. Lenders can view this as an indication of desperation for credit score and fear that you simply’re borrowing greater than you’ll be able to deal with, which may have an effect on your capability 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 new credit score merchandise you want, one after the other. In the event you’re rejected for a bank card, wait between three and 6 months earlier than reapplying to restrict the affect of exhausting inquiries.
6. You have got an excessive amount of debt
If you have already got numerous debt by 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 current balances. They may flag you at a better threat of defaulting and reject your software.
In terms of 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 accessible credit score you’re utilizing. This is named credit score utilization, which makes up 30% of your credit score rating. Attempt to maintain your utilization underneath 30% of accessible credit score for optimum optimistic affect in your rating. For instance, when you have $10,000 in whole credit score accessible to you, strive to not carry a steadiness of greater than $3,000 at any given time. This reveals lenders you’ll be able to handle your credit score responsibly.
7. There’s an error in your credit score file
In the event you’ve been turned down for a bank card (even when you have a superb credit score rating), however don’t have any debt and a clear fee historical past, it’s value checking your credit score report for errors. Incorrect fee particulars may very well be affecting your credit score rating—and, in flip, your eligibility to get authorised for brand new credit score.
You’ll be able to determine this by reviewing your credit score report often to see what’s documented and ensure the data is appropriate. For no cost, you’ll be able to take away incorrect info by submitting a dispute immediately with the credit score bureau.
8. You don’t meet the age necessities
In Alberta, Saskatchewan, Manitoba, Ontario, Quebec and Prince Edward Island, you have to be a minimum of 18 years outdated to acquire credit score. In all different provinces and territories, the minimal age is nineteen. In the event you don’t meet these age necessities, your bank card software will robotically be denied, so maintain off till you might be eligible.
