Due to the immense popularity of ecommerce these days, there has been an exponential increase in the demand for credit cards. People all over the world are applying for credit cards because they can execute transactions in a swift, safe, and reliable manner. However, due to the influx of applications for credit cards, banks all over the world are making their vetting process more and more rigorous. This has led to a lot of people missing out on these payment cards. The following are the top 5 reasons why leading banks across the world might reject your credit card application.
1. Too Many Inquiries on Your Credit Report
If the banks find out that you have applied for a lot of different credit cards in recent years, there’s a high chance that your credit card application will be rejected. Therefore, it is important to only apply for one when it is necessary.
2. High Credit Card Balances
This one is a no-brainer. If your credit card balances are too high, it means that you are dipping into a significant portion of your available credit. This roughly translates to you using more funds than that available to you. This is usually a major red flag for the leading banks across the world as they want you to use the funds that are in your account. If you’re maxed out on a credit card, there is a high probability that banks will deny your next credit card application.
3. Low Income
This is one of the unwritten laws of ecommerce, especially for credit cards. Even though no banks have a minimum income condition on their credit cards, if you stretch a little too far beyond your means, they will not allow you to get their premium payment cards. It is, thus, generally a good practice to only apply for the credit cards that most people in your wage bracket currently have as you will have a better chance of getting the application for this payment card accepted by your bank.
4. Unstable Work History
If you’re someone who identifies as a drifter and likes to change professions suddenly, banks are more likely to deny you a credit card than to accept your application. This can be due to a myriad of reasons. The chief reason we feel banks do this is that once you switch professions, there is no telling how your income will fluctuate. This unpredictability is a major turn-off for the leading banks in the world, which is why they might reject your application.
5. Charge-Offs on Your Credit Report
If the banks find out that you have ever had a charge-off in your life, you can effectively kiss your dreams of getting a credit card goodbye. A charge-off is a credit score that goes off unpaid for more than six months. It is aptly referred to as the black mark in the credit card world and should be removed from your credit history as soon as possible.