Understand why your credit card application was declined
Monday December 1, 2008
Many banks and financial institutions are adjusting their lending criteria in the wake of the credit crisis. This means that declined credit card applications will become more common. By having a strong credit card application, 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? Is it enough to cover your credit card repayments?
- Your credit history - what other debts do you have? Do you have any defaults?
- Employment history - is your job stable? Are you still on a probation period?
- Residential history - have you had any rent issues? Do you move around a lot?
All these elements may affect your chances of being approved for a credit card. Some may seem unusual, but remember that the bank is taking a risk by offering you a credit card, so they want to be sure that you have the ability to pay off your credit card.
If your credit card application has been declined, it is not the end of the world. There are steps you can take to improve your chances of being accepted. These include:
- Patience - if you make a number of credit card application in a short period of time, the bank may be suspicious, so let a little time pass between applications. This will also allow your employment and residential situations to stabilise.
- Check your credit card history to ensure that there are no unknown unpaid accounts or incorrect entries. If there are, follow them up promptly.
After following these steps, you might like to consider the Citibank Clear credit card, a low rate credit card with an interest rate of just 12.49%p.a on purchases.
This low rate credit card offers up to 55 days interest free and has a competitive annual fee of $65. There is also access to a range of benefits and discounts with the Citibank Clear credit card.
Apply online for a Citibank Clear credit card.
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