Why Your Credit Card Application May Be Rejected Despite an Excellent Credit Score

Here we regularly talk about the importance of maintaining a good credit score. A favorable score can get you a mortgage, car loan or credit card easily, and can also ensure good interest rates. However, did you know that despite having excellent credit, a bank or financial institution may refuse to issue you a credit card? Here are the reasons that may hamper your chances of opening a new account.

1. Apart from a good score, certain prestigious credit cards that offer generous rewards require the consumer to have a high income. Unfortunately, information regarding the level of income needed to qualify for a particular credit card is not generally available; hence, consumers just have to trust the issuer’s decision on this.
   
   
2. If the card company thinks that you already have too many cards, it may not want to issue you another one, even if you’re confident you can handle it. As with your income level, the number of cards that is acceptable is also at the issuer’s discretion.
   
   
3. If the financial institution thinks that you have too much debt, it would rather turn down your application than extend an additional line of credit on which you could default. This may occur despite the fact that you are paying your existing debt well enough to obtain a good score.
   
   
4. You may have recently paid off a high balance or closed off a credit card which should make you eligible for a new one. However, depending on how long it takes credit card issuers to send your account details to the credit bureaus, your report may reflect outdated information. Hence based on older information, your issuer may not approve you for a new card.
   
   
5. If you apply for too many credit cards within a short period of time, the issuer may reject your application. This is viewed as risky behavior by companies; they may think you’re in financial trouble or that you’re planning to take on too much debt.
   
   
6. If you’ve recently opened a new credit card, financial institutions may not want to approve your application for another one, without having enough time to analyze the payment history of the first one.
   
   
7. Placing a fraud alert or security freeze on your credit report prevents card issuers from getting access to it, due to which they may deny your application.
   
   
8. If you have a history of having defaulted on an account with an issuer, the institution may be unwilling to do business with you, even if the derogatory item has fallen off your credit report and your score has since improved. In such cases, speaking to an employee or representative of the company, or offering to clear up past issues may help you to get a new account.
   
   
9. Lastly, even if you think you have an excellent score; it might not really be the case. This is because, depending on the scoring model and version used (FICO 8, FICO 9, Vantage Score, etc.), you can have not one, not two, but hundreds of credit scores. Thus, if an issuer has used a formula on which you don’t fare well, they may reject your application.

Many consumers look upon credit cards as a way of getting a short term loan or a means to access emergency funds. Hence, having a card application rejected despite an excellent score can be quite frustrating. For those people, Fund&Grow has an excellent solution. We provide an easy way for individuals with good credit to get $50,000 - $250,000 through creative credit card financing - with zero percent interest for a period of 6, 12 or 18 months. And what’s more, you don’t have to put up any security. All you have to do is pay a flat fee, and we take care of everything, including the paperwork, for you. So if you need financing in this range, call us at (800) 996-0270 and we’ll do what we can to help you.