My Credit Card Application Was Declined – Why?
There are several reasons why a bank or credit card issuer may choose to decline a credit card application.
When you submit a credit card application, the potential lender will check your credit history with a credit reporting agency. This gives the potential lender a good idea of what kind of customer you’ve been in the past, how high of a risk you are: in a nutshell whether you are likely to pay your bills on time.
If your credit history is less than perfect, you must spend some time repairing your credit rating by looking into your credit report. The first thing you should do is get a copy and find any errors, outstanding accounts or unpaid bills. Reduce your credit card balances so they’re below the available credit limit and diligently pay any new bills on time. This will help to establish a stronger credit history that may help you avoid being denied on a credit card application in future.
While the banks have made it very easy to submit your credit card application online, there are times when customers fill in the details incorrectly. If you submit your application with incomplete or incorrect information, this could be enough to decline your application. This will almost always be the case if you are expecting an instant approval credit card application to be approved as the instant approval process is automated once the applicant meets minimum criteria and asessed as low risk.
Take some time to fill in your application correctly. Double check you’ve spelled everything correctly and be sure you enter the right income figures. If there are areas where you don’t have anything to enter, type a zero or write n/a in that section so they’re not left blank.
While it might look cool to flash a Platinum card around when you’re going out, if you don’t qualify for the criteria for one of these premium cards, you may find your application is declined.
Always take the time to do a little research and be sure you’re applying for the right type of card to suit your needs and your financial situation. Check whether the lender has specific criteria you need to meet in order to qualify for the type of card you’re considering. This can help you avoid being declined on your next credit card application.
Minimum Application requirements are likely to include:
Age (18 years or more)
Residency (Australian Citizenship)
Income (Will vary depending on the card)
