Having your credit card application denied can be frustrating, particularly when you're in a crunch and need access to credit quickly. But if you're having trouble qualifying for a CareCredit credit card or a card from a different company, there might be a way to remedy the issue and ask the issuer to reconsider.
Here are seven common reasons why credit card companies deny applications, and several steps you can take to address each one.
1. You Have Poor Credit or No Credit Score
Many credit card issuers check one of your credit scores when deciding whether to approve an application, and the interest rate and credit limit on new accounts. If you have a low credit score, you might find it's difficult to qualify for many cards.
There often isn't a set minimum credit score requirement for every credit card. Instead, the credit score you need may depend on the card issuer's current business goals, the applicant's history with the issuer and other aspects of the applicant's creditworthiness, such as their monthly income and debt.
Additionally, if you've never had a loan or credit card, you might not have a credit report and could be “unscorable." Your credit report also might not be scorable if it's been months since you last used a credit card.1 In either case, a credit card issuer might decline your application because it doesn't have enough information to make a decision.
What you can do
- Establish your credit: Opening a secured credit card, credit-builder loan or lending circle loan can help you establish your credit for the first time.
- Improve your credit: Try to take steps that can increase your credit score, such as paying down credit card balances, paying off collection accounts and making new bill payments on time.
- Apply with a joint applicant: Some credit card issuers, including CareCredit, allow you to apply for a joint credit card account. Adding a creditworthy person to your account could increase your chances of getting approved.
2. Your Income Isn't High Enough
Credit card issuers have to consider your income when reviewing your application.2 Although there isn't a specific amount of money you need to make, card issuers consider if you have enough for a new credit card payment and how much you earn relative to your monthly debt payments and monthly housing costs.
What you can do
- Increase your income: Perhaps easier said than done, but one option may be to take on additional shifts or start a side gig to increase your expected annual income.
- Double-check your annual income: Make sure you enter the correct amount of income by adding up all the eligible income sources.
- Review your household's income: If you're 21 or older, you may be able to include household members' income—such as your partner's or spouse's income—if you regularly use the money to pay your expenses.
3. You Recently Applied for Other Credit Cards
Each credit card application can lead to a hard inquiry, which might hurt your credit scores a little and decrease your chances of qualifying.3 And credit scores aside, some card issuers may deny applications from consumers who recently applied for or opened a card from the company.
What you can do
- Wait and reapply later: Try to space out applications to limit the impact of hard inquiries and increase the chances of getting approved.
- Strategically apply for cards: See if you can prequalify for a credit card with a soft inquiry, which won't hurt your credit score. Also, apply for the card you want the most first.
4. You Have a Negative History With the Issuer
In addition to reviewing your credit reports, credit card issuers may keep and review records of their customers' accounts. You might get denied if you previously missed payments.
What you can do
- Correct past mistakes: Paying off collections accounts might help your credit scores and your chances of getting approved for a new credit card.4
- Apply for a card from a different issuer: Look for similar cards from other issuers that may be more likely to approve your application.
5. Your Credit Reports Are Frozen
Adding a security freeze to your credit reports is a free way to limit access to your reports and help protect you from credit fraud. However, if your reports are frozen, a credit card company might not be able to pull your credit when you apply for a new card.5
What you can do
- Unfreeze your reports: Unfreeze your three credit reports to allow the credit card issuer to access them—you can do this online with each of the bureaus.5
- Thaw your reports: Alternatively, you may be able to schedule a temporary “thaw" that unfreezes and then automatically refreeze your reports.
- Call the card issuer: If you already applied and were denied, call the credit card issuer to see if it can reprocess the application rather than submitting a new application.
6. You Have Too Many Credit Cards
Some credit card issuers have business policies that can lead to credit card denials even if you have a great credit score and a high income. For example, you might be limited to a certain number of cards from the company. Or, your application may be denied if you recently opened cards from other issuers.6
What you can do
- Read the fine print: The terms and conditions sometimes tell you about these policies.
- Review your credit report: Look over your credit reports if you can't remember when you opened your other credit cards.
7. The Card Issuer Won't Extend You More Credit
The card issuer might have a total amount of credit that it's willing to extend based on your credit score and income. And if you already have credit cards with the issuer, you might have trouble getting approved for another one.
What you can do
- Review your income: See if you can increase your income or include other sources of income on your application.
- Apply elsewhere: Having multiple cards with one issuer can be convenient, but you might be more likely to get approved for a card from a different company.
- Call and ask to move your available credit: You can try calling the card issuer to see if this was the reason your application was denied. If it is, see if you can move some of the available credit from an existing credit card account to the new account.7
Get Prequalified Before Applying for Your Next Credit Card
Getting prequalified can help you find out if you'll likely get approved for a credit card without hurting your credit scores. It can be a helpful first step, but it's not a guarantee that you'll be approved. Also, although the CareCredit credit card offers prequalifications, you won't find this option with every credit card issuer.
Managing Health and Wellness Costs With the CareCredit Credit Card
If you are looking for an option to help manage your health and wellness costs, consider financing with the CareCredit credit card. The CareCredit credit card can help you pay for the care you want and need and make payments easy to manage.* Use our Acceptance Locator to find a provider near you that accepts CareCredit. Continue your wellness journey by downloading the CareCredit Mobile App to manage your account, find a provider on the go and easily access the Well U hub for more great articles, podcasts and videos.
Your CareCredit credit card can be used in so many ways within the CareCredit network including vision, dentistry, cosmetic, pet care, hearing, health systems, dermatology, pharmacy purchases and spa treatments. How will you invest in your health and wellness next?
Author Bio
Louis DeNicola is a freelance writer who specializes in consumer credit, finances and fraud. He has several credit-related certifications and works with many lenders, publishers, credit bureaus, Fortune 500s and FinTech startups. Outside of work, you can often find Louis at his local climbing gym or cooking up a storm in the kitchen.
