Reasons why you are denied a credit card

The credit card is a financial tool that allows you to have money in advance within a limit granted by the bank. Acquiring one is simple, however you must meet certain requirements for a financial institution to grant it to you.

Remember that no one is going to lend you money , much less a bank, without being certain that they will get the amount back.

Would you lend money to someone you don't trust? No right? And it is that financial institutions think the same as you. 

Before giving you a loan or authorizing a line of credit through a plastic, they must make sure that you are someone to trust. 

How do banks know if you are trustworthy?

Although the requirements may vary from one institution to another, the most common among institutions are the following:

  1. Be of legal age (18 years and older).
  2. Have a bank account (debit, for example).
  3. Have a credit history (previous experience using credits).
  4. Have a good credit history.
  5. Check income.

What are the reasons why you are denied a credit card?

You may be denied a TDC because you do not have one or more of the application requirements. This is because it represents a risk for the financial institution, especially because it is possible that you will not pay back what you have borrowed, or increase your level of debt.

Many times we do have a legal age, a bank account and we check our income with the payroll receipt, but still they deny us a credit card. Why what happened?

This can be for two reasons: you do not have sufficient credit experience or, if you have it, your history is not in good condition, that is, you are not up to date with the payment of your debts. 

How do I get credit experience if I don't have it?

As a beginner, you should start with the basics. You can gain experience by hiring easily accessible credit services such as a mobile phone plan, pay television or streaming entertainment and you will have to wait a period of 6 months.

If you've never asked the bank for a card but you already have a debit or savings account with them for some time, come over and ask them for one. The safest thing is that they offer you the card with a low line of credit. 

This is a breakthrough. If you use plastic as you should and are responsible for returning what you spent, they will eventually call you on the phone to offer you a larger line of credit. This is how you get the credit experience! 

Now, if you already have experience but they continue to deny you the card, it is probably because your credit history (or Special Report from the Credit Bureau, as it is also known) is not good and presents past due balances. 

What does this mean? That you have been late with the payment of your debts or that it has definitely been a long time and you have not paid them.

Can I improve my credit history?  

If you have negative records in your credit history, the first thing you should do is catch up with the payment of your outstanding debts.

If you are not enough to cover all of them, try to pay a little more than the minimum and limit the use of your credits so that your debt level does not continue to skyrocket.

Now, if the situation is so adverse and you cannot cover even the minimum because your debts rose as fast as foam, approach a debt repairman. 

Companies like this one will take you by the hand so that you catch up with your creditors without harming your personal finances. How is this? They will negotiate for you with the bank to get you the best discount with which you can pay off your debts. 

The discounts that a repairer gets can range from 30 to 90% in the best cases.

Once you catch up and your credit score improves (which is, let's say, the score you get based on your behavior in paying your debts) you can try applying for a credit card and have a better chance of being authorized.

Some recommendations when applying for a credit card

  1. Compare the Total Annual Cost (CAT): It is the indicator that shows you the real cost of your credit card. That is, how expensive is it, what percentage includes the interest rate and the different commissions for opening, damages, and so on.
  2. Deliberate before hiring: Before signing with the first bank you visit, better know what other institutions offer you. By doing this exercise you will be able to know the different opportunities that

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  1. author
    27 Aug 2019
    Tomas Mandy

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    1. author
      27 Aug 2019
      Britney Millner

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  2. author
    27 Aug 2019
    Simon Downey

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