Why Was My Credit Card Application Declined? Are There Alternatives?

When your application for a credit card is approved, you are usually notified immediately. But when you receive a declined credit card application, it's a different story, you must wait to find out why. 

While being rejected on a credit card application is disheartening, it isn't something you should take personally. Issuers of credit cards decline requests for a myriad of factors and knowing the reasons for your scenario should enable you to take the correct measures for future applications.

Continue reading to learn more about credit card rejection reasons, how to go about improving credit card approval odds, and the most popular credit card alternatives.

Why Did I Receive A Declined Credit Card Application?

There are numerous reasons why a credit card applicant is denied credit. As we all know credit reports play a significant role in credit card approval, among other things, such as employment and income. Your score, the length of time you've had credit, your payment history, credit utilization and debt-to-credit ratio matter. 

Let's find out how it all works with these creditworthiness tips below.

1. Low Credit Score

Once you apply for a credit card, the lender may run a credit check to see how you've handled debt in the past. A good credit history and higher credit scores may help you get approved for a credit card. However, you may have difficulty if your credit score is poor. You may have better luck if you use creditworthiness tips as a way of improving credit card approval odds in the future.

2. High Outstanding Debt

Too much debt can make it difficult to acquire new credit, particularly if your debt-to-income ratio is very high. Your debt-to-income ratio compares your debt to your income and may indicate whether you can take on more debt. If this is high, it may indicate that you will have difficulty making the payments due for any new credit.

3. Multiple Inquiries On Your Credit Reports

When you have several difficult queries on your credit report, particularly in a short period, a credit card issuer may be hesitant to approve your application. Frequent credit applications may indicate to the creditor that your financial situation has deteriorated.

4. Insufficient Credit History

Lenders typically review your credit history to determine your creditworthiness, which involves whether you've got a track record of making on-time payments. If you're new to credit, you might not have had the opportunity to demonstrate your creditworthiness yet. Making it difficult to get a credit card.

5. Inadequate Income

A credit card company must ensure that you earn a sufficient salary to cover the required payments on your card. You may not be approved if you do not have sufficient income to make the monthly payments.

6. History Of Late Payments

Because your payment history constitutes the most significant element in your FICO Score, missing just one payment by thirty days or more can harm your credit score and make it difficult to be approved for certain credit cards.

7. Too Many Credit Cards

The number of credit cards you currently have may also have an impact on your application and whether it is approved. There is no universal number that applies to all applications for a credit card. Rather, it depends greatly on the credit card company.

Are There Credit Card Alternatives After Being Denied?

If you're wondering what credit card alternatives are available, here are a few of the most common ones:

1. Loans From Friends Or Family

You may want to ask your friends or family for a low- or no-interest short-term loan. True, seeking assistance from the people closest to us can be humiliating, and accompanied by a lot of emotional baggage. Keep the conversation professional: Have a fully prepared formal contract that specifies every one of the provisions to ensure that both parties know precisely what to consider in terms of cost and return.

2. Payday Loans

Payday or paycheck loans are loans meant to make lending easy and fast for almost anyone who needs money immediately. If you need assistance with unforeseen needs, this type of loan can bridge the gap between your salaries.

3. Title Loans

Unlike typical bank loans, which need a lengthy application procedure, title loans can provide you with cash instantly based on the value of your vehicle, even if your credit card application was declined. With just a few simple requirements you can be approved for a title loan of up to $15,000 in about 30 minutes.

4. Installment Loan

If your credit card application is declined, installment loans are a simple and fast option to receive extra cash. It can take little time and effort to be approved for an installment loan at your local store. For example, Mississippi Title Loans, Inc. offers installment loans of up to $1,250.

The Loan Process

Fill out the website's online form.

Wait for a call from a loan agent at the nearby Mississippi Title Loans, Inc. location. Ask any questions you may have and set up a time to meet to supply the required items for loan approval. 

Arrive at the designated time and place so the representative can assist you with the last stages of the process, including the minimal paperwork.

If authorized, receive the funds the same day you apply or the next business day.

Using Mississippi Title Loans, Inc. Loan Options After Credit Denial

If you received a declined credit card application for one reason or another, you should not reapply until you've obtained the adverse action letter and determined the grounds for refusal. In certain situations, you might be able to obtain the information directly from the issuer.

Whatever loan option you pick be sure to consult knowledgeable employees from organizations like Mississippi Title Loans, Inc. who are in a great position to help with a title loan, payday loan, or installment loan. To speak with a loan representative today about your loan options, complete the online form now. The sooner you find a way to get the cash you need, without worrying about credit card rejection reasons, the better.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.