Having a delinquency in your credit score report can even make it more difficult to get accredited 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 document can considerably impair your credit score rating and make it very onerous to get accredited for many bank cards. So, in the event you do have a delinquency in your report, work to resolve the difficulty and settle any quantities in collections earlier than making use of for brand spanking new credit score.
5. You’ve utilized for lots of credit score lately
Making use of for a number of bank cards in a short while generally is a purple flag. Lenders can view this as an indication of desperation for credit score and fear that you just’re borrowing greater than you possibly can deal with, which may have an effect on your skill to make the minimal funds.
As well as, each new credit-card software generates a tough inquiry that can decrease your credit score rating. Exhausting credit score inquiries account for 10% of your credit score rating so it is very important solely apply for brand spanking new credit score merchandise you want, one after the other. If you happen to’re rejected for a bank card, wait between three and 6 months earlier than reapplying to restrict the impression of onerous inquiries.
6. You’ve got an excessive amount of debt
If you have already got plenty of debt by means of 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 could flag you at the next threat of defaulting and reject your software.
In the case of assessing your creditworthiness, lenders focus not simply on the quantity of debt you owe, but additionally have a look at how a lot of obtainable credit score you’re utilizing. This is called credit score utilization, which makes up 30% of your credit score rating. Attempt to maintain your utilization below 30% of obtainable credit score for optimum optimistic impression in your rating. For instance, you probably have $10,000 in complete credit score accessible to you, attempt to not carry a stability of greater than $3,000 at any given time. This exhibits lenders you possibly can handle your credit score responsibly.
7. There’s an error in your credit score file
If you happen to’ve been turned down for a bank card (even you probably have a wonderful credit score rating), however haven’t any debt and a clear fee historical past, it’s price 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 accredited for brand spanking new credit score.
You’ll be able to determine this by reviewing your credit score report usually to see what’s documented and ensure the data is appropriate. For no cost, you possibly can take away incorrect data 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 should be a minimum of 18 years previous to acquire credit score. In all different provinces and territories, the minimal age is nineteen. If you happen to don’t meet these age necessities, your bank card software will robotically be denied, so maintain off till you might be eligible.
