Why Do I Keep Getting Denied for My First Credit Card? (2024)

FAQs

Why would I get declined for my first credit card? ›

Credit cards are often denied because the applicant's credit score is too low. Among those with poor credit who applied for a new loan or financial product since March of 2022, 73 percent were denied, according to a credit denials survey by Bankrate.

Some common reasons that your credit card might get declined include having the card's credit limit maxed out, accidentally triggering the card's fraud protections and even entering incorrect payment information on a website.

If you don't have much experience with credit or have negative factors weighing you down, such as late payments in your credit history, you may have difficulty receiving approval for a new account. If you do receive approval, you'll likely receive less favorable terms.

You may also have a history of high credit utilization. If you consistently max out your credit cards, for example, issuers may be hesitant to offer you new credit even if you always make your payments on time. Or maybe you've applied for too much new credit within a short time period.

A hard inquiry from a card application can cause a small, temporary drop in credit scores. A denial or approval won't hurt your credit scores, because decisions aren't reflected in credit reports. When making lending decisions, card issuers use credit reports and credit scores to determine creditworthiness.

Since hard inquiries affect your credit score and what is found may even affect approval, you might be wondering: How many inquiries is too many? The answer differs from lender to lender, but most consider six total inquiries on a report at one time to be too many to gain approval for an additional credit card or loan.

Your card may be declined for a number of reasons: the card has expired; you're over your credit limit; the card issuer sees suspicious activity that could be a sign of fraud; or a hotel, rental car company, or other business placed a block (or hold) on your card for its estimated total of your bill.

If you have a low credit score, your Credit Card application can get rejected. There are multiple reasons for low credit scores; these include delay in EMI payment, debt, defaulting on repayment of previous loans, and others.

You can't get a credit card if you're under 18, have too much debt, lack enough income, or have credit scores that are too low to meet the credit card issuer's requirements.

The Discover it^® Secured Credit Card — offering cash back rewards on every purchase — is the best beginner credit card. It's a secured credit card widely available to consumers with fair, poor or limited credit. Find your perfect card in 30 seconds. Check your approval odds so you can shop smarter.

What is a good limit for a first credit card? ›

If you're just starting out, a good credit limit for your first card might be around $1,000. If you have built up a solid credit history, a steady income and a good credit score, your credit limit may increase to $5,000 or $10,000 or more — plenty of credit to ensure you can purchase big ticket items.

As a general rule of thumb, consider waiting around three to six months before reapplying. In the meantime, try to improve your creditworthiness, which might increase your chances of getting approved when you reapply.

However, having a score in that range or above doesn't guarantee approval on credit applications. Your credit score isn't the only factor lenders consider when processing an application, which means even people with an excellent score risk being denied.

No, denied credit applications won't appear on your credit report. Lenders don't report whether your applications were approved or denied because even approved applications don't necessarily result in a new account. Generally, if you're approved for a credit card, the card issuer will open the account automatically.

There are several reasons why a debit card may be declined even if you have money in your account. Common reasons include travel and reaching your daily purchase limit. Stay on top of your cards and consider using budgeting apps to help avoid debit card denial.

If you're issued a credit card with a low credit limit, it could be for a number of reasons, including: Poor credit history. High balances with other credit cards. Low income.

A credit card application can get denied for various reasons: low credit score, high credit utilisation ratio, insufficient credit history, etc. You can improve your creditworthiness by following the best financial practices and increase the chances of your application getting approved.

Consumers can apply for credit cards starting at age 18, but the law requires them to have an independent income or a co-signer. However, most major issuers don't allow co-signers anymore. So, a person aged 18, 19 or 20 usually has to earn and prove their own income before being approved for a credit card.