Many people have questions when they apply for a credit card – which is the best for me? How do they decide to give me a credit card? Why do they need to know all these things about me? What does it mean to be pre-approved? What could make the card company such as DBS, UOB, OCBC, CitiBank, Standard Chartered and more, decide not to give me a credit card? When you get denied for a credit card, some companies will tell you the reason why. However, there are some that are quite vague in telling you on the spot why you were turned down. You will have to wait for a few weeks before you learn why you have not been approved. While they are creating the adverse action letter that contains all the reasons why your application might have been denied, here are the reasons why.

You’ve applied for a card that targets people with higher credit scores.

Most companies that issue credit cards have a variety of them – they call them ‘credit products’ – each aimed at a different market. A reward credit card, for instance, often targets those with the best credit scores. At a credit card comparison site like, you can check each credit card offer to see if it is aimed at those with excellent, good, fair, poor or bad credit, and apply for the one that best applies to you.

You don’t have any credit history

Believe it or not, never having borrowed money before can work against you when you apply for a credit card. If you have no history of having paid bills, then the company has no way of judging whether or not you’ll pay their account. Issuers will check your credit report to know if you are a responsible spender and borrower. If they see that you miss a lot of repayments and you have hefty balances, they will immediately turn you down. It is significant that you constantly examine your credit report to know whether there are inaccuracies and late adjustments.

Low Income or Job Instability

If you have changed jobs recently, creditors will not be too willing to take the risk. They usually take your job history and how long you have been on your current job to approve your application. If you are planning on moving to one company or to another occupation, apply for a credit card first before the big switch. One of the pieces of your credit score puzzle is how stable you are, and that’s judged by how long you’ve been in your current residence or position.

If it’s less than two years, it will be a negative, even if there’s a good reason for it. While there is nothing wrong with being self-employed, banks categorize such individuals as unsecured or high-risk candidates. Most banks are only willing to grant credit to self-employed individuals if they have been employed for a certain length of time.

Previously declined application

This is one reason to be sure you only apply for the best credit card – the one that you’re most likely to be approved for. If you’ve applied for many credit cards in a six to twelve month period, the companies may see it as a sign that you may be in financial trouble. The fact is, bank are trying to save themselves time and effort which is why applicants who have been declined once are rejected once again. Ideally, applicants are not advised to apply for cards within a span of two weeks after being declined for a different application. However, it is best to wait a lot longer than that. Some card companies apply a 3 months cooling off period for declined credit card applications.

Inaccurate information

Banks do extensive background checks before they grant cards to all applicants. They asses each applicants’ financial history methodically and providing inaccurate personal details may send the wrong message. In such cases, applicants will be perceived as untrustworthy individuals. This will inevitably lead to declined applications. This usually happens when you apply on paper. If your application does not have all vital pieces of information in it, the bank or the issuer may not grant you your request. The good news is that you can now apply online and most issuers have forms that could not be submitted unless you have completely filled out the form.

Age Requirement

If you send the application before you reach 18 years old, you risk being rejected. There are even cases where young adults under the age of 21 are denied of their application. There are a few exceptions, though, including becoming an authorized user to your parent’s credit card and having a co-signer. If you have income proof and you are at least 18 years old, you will most likely be approved provided that you meet other criteria.

Cash Advances

A one-time cash advance will not damage your credit score. However, if you regularly withdraw money using your credit card, issuers see this as a sign that you are struggling with cash. Aside from that, this activity will force you to pay high-interest fees.

Very Recent Delinquency

Have you been late on a payment? If it has been six months since your last delinquency, don’t apply for a card. The creditor will instantly deny your application. It pays to apply for a credit card in which you meet the requirements. Do not submit your application simply because it has rewards and appealing perks. Be realistic and aim for a credit card that matches with your profile.


In such a case, there is a possibility for you to get the source of the credit card company and so, verify facts if you have doubts with how your application for the credit card has transpired. Also, if no facts were mentioned in their letter, you can always do the necessary investigation and checking of the credit card issuer, itself? Thus, coming up with the details on this is sure to help you in the future make your credit card application more successful. You may also be denied if your income is lower than the required limit for a particular card in case this your application fails you can opt to go for licensed money lenders as they can assist you. Make sure that the credit card you choose fits your present salary so you won’t get denied.

Published On: March 16th, 2018

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