Having a delinquency in your credit score report may also make it tougher to get authorised for a bank card as banks see you as a high-risk applicant. Whether or not you’ve missed a cost or skilled a monetary setback that led to your debt going to collections, having a delinquency in your report can considerably impair your credit score rating and make it very arduous to get authorised for many bank cards. So, should 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 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 purple flag. Lenders can view this as an indication of desperation for credit score and fear that you simply’re borrowing greater than you possibly can deal with, which may have an effect on your capacity to make the minimal funds.
As well as, each new credit-card software generates a tough inquiry that may decrease your credit score rating. Laborious credit score inquiries account for 10% of your credit score rating so you will need to solely apply for brand 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 arduous inquiries.
6. You’ve got an excessive amount of debt
If you have already got lots of debt via loans, mortgages and excessive credit-card balances, opening a brand new bank card could possibly 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 danger of defaulting and reject your software.
With regards to assessing your creditworthiness, lenders focus not simply on the quantity of debt you owe, but in addition 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 hold your utilization below 30% of obtainable credit score for optimum optimistic impression in your rating. For instance, when 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 reveals 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 when you have a wonderful credit score rating), however haven’t any debt and a clear cost historical past, it’s price checking your credit score report for errors. Incorrect cost particulars could possibly be affecting your credit score rating—and, in flip, your eligibility to get authorised for brand 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 right. For no cost, you possibly can take away incorrect info by submitting a dispute straight 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 not less than 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 software will robotically be denied, so maintain off till you’re eligible.
