Having a good credit score will provide you with a range of benefits, one of which is to get a low interest rate when applying for a loan.
The problem is that despite having a good credit score, credit card applications are still rejected and not approved.
What’s going on here? Well, the 5 reasons below might be the reason why credit cards are rejected despite having a good credit score.
You have no income
The credit card issuer needs to verify your income and ability to pay credit. Therefore, those who do not have income will find it difficult to get a credit card.
The reason for the refusal is understandable because the card issuer wants to ensure that they will be paid back for any existing debt.
Having Problems with Credit in the Past
If you have had financial problems with a credit card issuer or lender in the past, then this might be the reason why your credit card application was declined.
Even if you have now repaired the credit, your credit history in the past will still be recorded and known.
The ratio of credit utilization is too high
The ratio of credit utilization is one of the factors that determine the health of your credit. Ideally, you should take advantage of credit at 30% of the limit obtained.
You are not a customer who gives a profit
In the end the reason credit card issuers do not accept submissions because you are deemed unprofitable for them.
Maybe it’s because you don’t use a previously-owned credit card or prefer to take part in a low interest program when there is a promotion. Remember that, credit card issuing banks look for consumers that allow them to generate income.
Have Many Credit Cards
Having too many credit cards can be a bad thing because it means consumers are trying to get more credit and it is likely to be difficult to repay.
What are the benefits of credit cards? If you can not control spending patterns when using a credit card, you should not need to apply for a credit card. If you persist, then the consequences will have an impact on your own financial condition.
Instead of buying something with a credit card you better invest first until the money is enough to buy what you want.
KoinWorks can be a short-term investment option under 2 years for you to use. Interestingly, investing in KoinWorks can be started with limited capital, which is only $ 100,000. Limited capital has the potential to grow more than 18% per year.
When the investment has provided optimal results then you can use these funds to buy something you want.
Whether for a vacation, buying a house, DP a car, education funding, or buying a new smartphone. This way is certainly far wiser than relying on your credit card to get things done.
The conclusion is that a credit card can be a weapon to eat, if you don’t use it wisely. Those are the 5 reasons why your credit card application was not accepted.
We hope that what has been said above will open your mind more so that you can manage your credit card more wisely and not just use it for unnecessary purchases.