What To Do If Your Credit Card Application Is Declined | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 07/04/2021

Credit cards can be a very convenient way to borrow money and, if used carefully, can be a good personal finance tool for consumers. But, just as with any type of credit, applying for a credit card does not mean that the lender will approve the application.

In fact, it’s not uncommon for consumers to have credit card applications denied, especially if they are applying for a credit card offering an attractive deal, such as a long interest-free period on 0% purchase or balance credit cards. As well as this, there are many reasons why a credit card application is declined.

For those applying for a credit card, here are some of the reasons why a credit card application can be declined, as well as what to do if the application has not been successful.

Why a credit card application could be declined

One of the most common reasons why a credit card application is declined is because the applicant’s credit score is not high enough. Many factors impact a credit score, from being on the electoral roll to missing credit repayments. Luckily, consumers can check their credit score for free online and for those planning on applying for a credit card in the near future, it might be a good idea to check their credit score before making an application. If the credit score comes back poor or average, take a read of our guide on how to improve your credit score for tips.

Another factor that can result in your credit card application being declined is not meeting the applicant criteria, such as annual income, so it is vital to check the requirements before making the application. The application will also likely be declined if it is not filled out in full or accurately, so it is a good idea to spend time making sure the application is all in order before sending. Another reason why some applications are declined is due to not being in a job for long enough – this one can be hard to amend in the short-term, but if an applicant has been in their job for less than a year, especially if they have been out of work or job hopped for a while, it might be a good idea to wait until they have been employed for longer before making another application.

What to do if your credit card application has been declined

If a credit card application has been declined, the lender should inform the applicant of the reason as to why it has not been successful. The applicant should usually then work on improving the reason before making another application.

For those who need to borrow money, but cannot get a credit card approved due to a poor credit score, a credit repair card may be a good option. These cards are usually aimed at those with a poor credit history and will enable them to borrow a small amount, with the idea that this will help them to rebuild their credit score. Those considering a credit repair card should be careful about borrowing money on the card as normally the APR is much higher than on a standard credit card. Ideally, borrowers should aim to repay the balance in full each month.

You can see all the credit repair cards currently available by visiting our bad credit credit cards chart.

Consumers with a low credit score who do not need to borrow money immediately can look at rebuilding their score with LOQBOX. This product enables consumers to decide how much they can save in a year and lock away a 0% loan for that amount in their LOQBOX. Over the 12-month period they pay off the loan, growing their credit score at the same time. Once the loan is repaid, they can release the money into a new bank account for free or into an existing account for a £30 fee.

To find out more about how to check your credit score, visit our credit check page.

Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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