Having a delinquency in your credit score report may also make it more difficult to get accepted 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 accepted for many bank cards. So, in the event you 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 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 is usually a crimson 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 might have an effect on your skill to make the minimal funds.
As well as, each new credit-card utility generates a tough inquiry that can decrease your credit score rating. Arduous credit score inquiries account for 10% of your credit score rating so you will need to 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 influence of exhausting inquiries.
6. You might have an excessive amount of debt
If you have already got a variety of debt by loans, mortgages and excessive credit-card balances, opening a brand new bank card might be seen as a warning signal to lenders that you’re having issues paying down your present balances. They could flag you at the next threat of defaulting and reject your utility.
Relating to 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 named credit score utilization, which makes up 30% of your credit score rating. Attempt to preserve your utilization below 30% of obtainable credit score for max optimistic influence in your rating. For instance, in case you have $10,000 in whole credit score out there to you, strive to not carry a stability of greater than $3,000 at any given time. This exhibits lenders you’ll be able to 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 in case 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 might be affecting your credit score rating—and, in flip, your eligibility to get accepted for brand spanking new credit score.
You may establish this by reviewing your credit score report commonly to see what’s documented and ensure the data is right. For no cost, you’ll be able to take away incorrect info by submitting a dispute instantly 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 at the very least 18 years outdated 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 utility will routinely be denied, so maintain off till you’re eligible.