Why refused credit card

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Share Share on Social Media. Adobe Stock. Editorial Independence We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money. Trending 1. In your inbox every Tuesday. Logging a lot of credit card activity in different locations both domestic and internationally raises a red flag to credit card issuers that your card may be stolen.

As a result, your issuer may lock your accounts and prevent any purchases from going through in order to protect your information. To avoid losing access to funds while traveling, notify your bank and credit card issuers of your travel plans in advance. A quick preemptive call to the number on the back of your card will save you the headache and potential international phone bill later.

If you splurge on a spending spree or use your credit card for a large purchase , your credit card issuer may flag your account. Again, notifying your credit card issuer of your spending changes helps to fend off account locks. Or perhaps your billing address is outdated. These could all be simple explanations for a declined transaction. Too many accidents like this can result in a freeze on your account, though.

In that case, you may need to contact your issuer to clear up any misunderstanding. Always enter your information carefully and review it before hitting submit, especially if you have multiple billing addresses. You should also be diligent in notifying your issuer anytime you have a change of address, as up-to-date personal information helps prevent fraud.

After you miss a payment for the first time, you should contact your issuer and settle the missed payment as quickly as possible. Not only do missed payments make it impossible to use your card, but they can also have a negative impact on your credit score and dramatically reduce your ability to qualify for the best rewards credit cards or competitive loan rates in the future.

Trying to use an expired card or a deactivated account will nearly always result in having your transaction declined. Look for your new credit card in the mail as soon as three to six months before your current card is set to expire. Similarly, any change the primary cardholder makes to an account on which you are an authorized user can affect your activity. For instance, if a card is reported lost or stolen, all cards on the account will be temporarily deactivated until new ones are issued.

Even as an authorized user, you may be affected. Always stay in communication with the primary cardholder of any accounts your information is on, and keep tabs on any upcoming expiration dates that may impact your card use. Large purchases can also become a problem when a hold is placed on your credit card.

Be sure your credit card has enough available credit to accommodate multiple holds at the same time. It can take a while for pending holds to charge or fall off your statement. You may be able to get it removed by contacting your issuer or the merchant, but patience is usually key in this case.

In other cases, it can easily be solved with a phone call or by better tracking of your spending. Keep the lines of communication open, and you should enjoy uninterrupted card activity.

But the next time you do find yourself faced with a declined card at the register, here are some tips for how to handle it:. You should always have more than one way to pay. Please consult your legal practitioner, professional adviser or the relevant government or statutory authorities before making any decisions. Canstar may earn a fee for referrals from its website tables, and from Sponsorship or Promotion of certain products. Fees payable by product providers for referrals and Sponsorship or Promotion may vary between providers, website position, and revenue model.

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What are the 3 main reasons why credit applicants can be declined credit? In general, there tends to be three main reasons why people are declined for credit. Your credit report may have incorrect information. Capacity to service the debt. Can I apply for a credit card that declined me? Why am I not getting approved for credit cards?

Personal Finance Writer. Nicola is a personal finance writer with nearly two decades of industry experience. Share this article. Related Does applying for a credit card hurt my credit score?

Can I get a credit card with poor credit? Keen to get out of debt? Your point plan. Negatives on credit reports: Most negative marks — such as payments over 30 days late, collection accounts and court judgments — stay on your credit reports for seven years and can make it harder to get approved for the best credit card offers. Too many credit applications: If you have a lot of hard inquiries on your credit reports, issuers might hesitate to extend you more credit.

Low income: Some issuers will reject you if your rent is nearly as high as your income, for example. Too much debt: If you have a lot of outstanding credit obligations — loans, mortgages and high credit card balances — issuers will view you as a higher-risk borrower.

Too young: You'll be denied credit if you're under 18, and likely if you're under 21 and don't earn an independent income.

Your rejection notice might mention your credit score as a factor in the decision. If so, it will say you have a right within the next 60 days to request a free copy of the credit report used in the application decision. Get that report and read it. Errors are common. If you find mistakes, dispute them in writing with the credit bureau. Examine the information you provided to the issuer in case you accidentally made yourself seem less creditworthy.

It's not just fat-finger mistakes that can trip you up. You also need to know what counts as income. Most issuers don't specify how applicants should report income, so some report only their own independent earnings.