Think about why your credit card application was declined
Monday December 1, 2008
Banks and financial institutions are adjusting their lending rules in the wake of the credit crisis. This has resulted in an increased number of declined credit card applications. By knowing what banks are generally looking for, you can improve your chances of being approved for a credit card.
When going over a credit card application, banks look at a number of factors. The main four include:
- Your income. Is it stable and ongoing? Is it enough to cover your credit card repayments?
- Your credit history. What other debts, such as other cards and loans, do you have? Do you have any defaults?
- Employment history. Is your job permanent? Are you still on a probation period?
These elements may affect your chances of being approved for a credit card. Remember that the bank is taking a credit risk by offering you a credit card. They want to be sure that you have the ability to pay off your credit card so they don't lose any money.
If your credit card application has been declined, there are steps you can take to improve your chances of being accepted.
Check your credit card history to ensure that there are no unknown unpaid accounts or incorrect entries. If there are, follow them up promptly and pay off any overdue accounts.
If you make a number of credit card applications in a short period of time, the bank may be more inclined to reject your application, so let a little time pass between applications. This will also allow your employment and residential situations to stabilise.
You might like to consider the Citibank Clear credit card. This low rate credit card has an interest rate of just 12.49%p.a on purchases. This credit card offers up to 55 days interest free and has a competitive annual fee of $65. With the Citibank Clear credit card, there is also access to a range of benefits and discounts.
Find out more about why your credit card application was declined.
Apply online for a Citibank Clear credit card.
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