Why Did I Get Denied for a Credit Card?

The two biggest reasons companies will deny you a credit card are low credit scores and poor credit history.

Other reasons for credit card denial include low income and too many credit inquiries. There could also be a couple of technical reasons. One is that you made a mistake in your application. Another is that you applied for a card that has eligibility requirements that you don’t meet.

Regardless of the reason, if you experience a denial, you aren’t alone. Credit card denials are increasing across the country. The average credit card rejection rate rose to 20.2%, according to a 2024 report from the Federal Reserve Bank of New York.

1. Your Credit Score Is Too Low

Credit scores are a universal measurement of financial well-being. All lenders, including credit card companies, use scores to assess a person’s ability to pay back the money they borrow. Scores range from a low of 350 to a high of 850.

You need a score of 670 and above to be considered as having good credit. But you’re likely to get approved for almost any card if you have a credit score of 700 or higher, according to JP Morgan Chase bank.

Banks consider scores between 740 to 799 as “very good,” while 800 and above is considered exceptional.

Lenders typically use two models to measure someone’s credit score: the FICO score and the VantageScore. The two models are similar but use differing calculation methodologies, including giving credit categories different weights.

What to do:

Check your credit score before you apply for a credit card.

If you need to improve your credit score, start by paying all your bills on time for the next 6-12 months.

Other keys to raising your credit score are to pay off existing debts and not take on any more debt.

Two other tactics to consider are to get a secured credit card and become an authorized user on someone else’s account. Make sure that the user has very good or excellent credit.

2. Your Income Is Too Low

How much money you make — your income — matters a great deal when the time comes to apply for a credit card. Income directly affects your ability to pay monthly expenses and debts. Lenders consider whether you have a fixed income or whether you work part-time (and can work more hours).

Lenders also look at the type of income you generate, whether it comes from an employer, unemployment benefits, annuity payments, financial aid payments or money from another source, such as from rental property or other investments.

Credit card companies use two income-related calculations to decide whether to approve your credit application: debt-to-income ratio (DTI) and payment-to-income ratio (PTI).

You can either make more money or lower your expenses to help get these two numbers to benefit you.

What to do:

Secure a second (or third) job to earn additional income.

Look for a higher-paying job to replace the one you have.

Lower your DTI by paying off debts. Even if you have the same income, a lower monthly payment requirement will help your DTI.

3. Your Credit History Is Too Short

If your credit history is too short, it’s difficult to secure a credit card. It can also be hard to land a place to live. You must establish credit over 12 months or longer that shows lenders that you’re creditworthy.

Credit history explains how you manage your money. Your past financial decisions tell banks and lenders what you paid off most recently and when you were late making payments (and what those payments were for).

Your credit history tells banks how many active credit cards you have and how much money you owe. It also tells them how long you’ve held your existing lines of credit.

What to do:

Start building a credible history by using secured credit cards, store-specific cards (such as gas cards or retail cards) and credit-building loans.

Also, look into joining your parents’ credit card accounts as an authorized user.

You can also take out a small short-term loan with one of your parents serving as a co-signer on the loan.

Be smart about your charges for six months or longer. Don’t overbuy and make on-time payments each month.

4. You Have a Poor Payment History

Although your payment history is only one part of your credit score, it is the most important part, making up 35% of your FICO score. Having a poor payment history means you have something in your past that proves you didn’t make credit payments on time. A poor history might include late payments, past overdue payments, debts that went to collections, current overdue payments, and bankruptcies.

When they assess your payment history, credit reporting agencies consider all your documented accounts. Those include credit cards, mortgages, auto loans and other installment loans, personal loans, and any other retail credit accounts.

What do do:

You can’t do anything about past payments. You can only do better on future payments.

Review your credit report. Try to make on-time payments for at least 12 consecutive months before you apply for a new credit card.

If you have any accounts that are in collections, pay them off or settle them. As part of the payoff or settlement, ask for a “goodwill adjustment” from your creditors.

5. You Have Many Recent Credit Inquiries

Applying for multiple credit cards or opening several new credit accounts in a short period invites questions from lenders. But how many is too many depends on the inquiries, whether they’re soft or hard.

Soft inquiries, which are sometimes called a soft credit check or a soft credit pull, are a review of your full credit report that isn’t linked to a pending credit application. Soft inquiries don’t affect your credit score.

Hard inquiries, also called hard credit pulls or hard credit checks, are associated with a pending credit application. They can lower your credit score, but they’re not a permanent stain on your credit report. These inquiries remain in your credit report for only 12-24 months.

It’s important to note that all mortgage-related inquiries made within about a 45-day window are considered as one, according to the Consumer Financial Protection Bureau.

Although lenders could interpret a larger volume of inquiries as a sign you might be overextended financially, they don’t reveal how many hard inquiries are too many. However, unlike credit histories, credit inquiries are only a small part of the calculation making up your credit score. So, inquiries alone aren’t likely to determine if your credit card applications get approved.

What to do:

If possible, don’t submit several credit applications at the same time. Try to spread them out for 3-6 months.

Before you submit a credit card application, ensure that the card you desire is one you are likely to qualify for.

Use pre-qualifying tools that use soft inquiries, which won’t harm your credit. Some credit card companies also have tools that match your current financial situation to the most suitable credit card in their portfolio.

6. You Have Had a Recent Bankruptcy

There’s no getting around this. If you have a personal bankruptcy on your credit report, it’s going to hurt your chances of obtaining a credit card. In fact, it’s likely going to kill them.

Bankruptcies hit two major components of your financial life: your credit score and your credit history. Chapter 7 bankruptcies stay on your credit report for 10 years. Chapter 13 bankruptcies are there for seven years.

You can expect automatic credit rejections for the first 24 months. As the date of your bankruptcy ages, creditors will look more kindly at your applications.

What do do:

We have four recommendations for anyone who is coming back from bankruptcy. The first is to secure a credit-building loan. These are typically small loans with small and structured payments. You can build your credit back by paying on time and paying in full.

The next step is to get a secured credit card or a pre-paid credit card. Secured cards require you to have a credit on the account to use it. You make advance payments to the lender.

Finding a co-signer is another way to rebuild. This is a credit-worthy individual who will help you get a new credit account.

Lastly, you can find someone who will let you become a co-authorized credit card user on one or more of their accounts. This can be trickier because the original account holder is liable for making on-time payments. But as an authorized co-user, you can drive up your credit score month by month.

7. You Have a High Debt-to-Income Ratio

Even though this number doesn’t appear on your credit report, the debt-to-income ratio (DTI) is a key calculation that banks look at when deciding if someone is creditworthy. This number compares your monthly debt obligations to your income.

Lenders prefer a DTI of 36% or less. DTIs of 50% or higher are likely to lead to a credit denial.

There is a school of thought that if you have a deep credit history, even if your DTI is high, you will still get approved for a new credit card. However, you may get saddled, at least initially, with a higher interest rate or a lower-than-normal credit ceiling.

What to do:

Because DTI is something you can figure out by yourself by adding up your monthly bills and income, you should know where you stand long before you fill out a credit card application. If your DTI is too high, start working to lower your monthly debts.

Tackle either the smallest debt first to get it paid off or else work to pay off the debt that carries the highest interest rate. Either way, you must shrink your debt.

On the other side, you should generate extra income. That could mean getting a second job, asking for a raise, or finding a better (and higher-paying) job.

Once you get your DTI below 40%, you can apply for that credit card.

8. You’re Too Young

According to the Equal Credit Opportunity Act, creditors can’t use your age as a basis for lending decisions, but they can require you to be at least 21 years old. In fact, companies are forbidden from lending you credit unless you’re at least 21.

That’s not to say you can’t be younger than 21 and possess a credit card.

What to do:

The only action item here is to get your parents to add you as an authorized user on one or more of their credit cards. You can explain to them that by doing this, they can monitor your purchases and allow you to build your credit history.

If you’re aged 18 to 21 and you don’t have an income, you can apply for a secured credit card, one that has a low deposit requirement.

9. You Don’t Have a Social Security Number or ITIN

Almost all credit card companies require a Social Security number or individual taxpayer identification number (ITIN) to process cards. Without one of these numbers, companies are almost certain to reject your application.

If you don’t have either form of identification, it’s easy enough to apply for an ITIN through the U.S. government.

The process typically takes seven weeks after you submit your application, but the IRS says it will take 9-11 weeks if you apply during tax season (January 15 through April 30). However, the IRS experienced a significant staffing downsizing in March 2025, and that could lengthen the time it takes to gain an ITIN.

What to do:

One of the first things you can do is search for a credit card that doesn’t require a Social Security number or an ITIN to get approved. Examples are Firstcard, Zolve, Neu Card and ANA Card U.S.A. Plus.

A few other cards don’t need a Social Security number but require an ITIN. They include Chase’s Freedom Rise card, Capital One’s Quicksilver Security Cash Rewards card, American Express’s Blue Cash Everyday card, and a card from Petal.

The other major actions you can take are to apply for a Social Security number through the Social Security Administration or apply for an ITIN online through the Internal Revenue Service.

10. You Chose a Card with Specific Application Restrictions

It’s also possible that a credit card company will turn down your application for a new card because you’ve asked for a card that comes with restrictions. For example, you may have too many cards in your wallet already, so you might not be eligible for another one yet.

If you applied for more than one card from the same creditor, one application is likely to be paused. Banks say that’s one way to limit potential fraud. However, once one card is approved, you can apply for a second card, and it’s possible to secure both cards within 90 days.

American Express limits its customers to five AMEX cards. Bank of America has similar restrictions, with a four-card maximum. You can get approved for two cards in 30 days, three cards within a year, and four cards within two years.

If you mess up the timing of your application and submit one too early, that could be a reason for a decline.

Capital One only allows its customers (and potential customers) to apply for one card every six months. This restriction includes any combination of personal and business cards.

JP Morgan Chase is much less restrictive than many, if not all, other creditors. It does not spell out caps on the number of its credit cards someone can have. The famed Points Guy once reported that he had seven Chase cards — and he knew of others who had more!

However, Chase has its so-called 5/24 rule: if you have opened five or more credit cards over the previous 24 months, you can expect another application within that two-year time frame to be rejected. However, business cards don’t count as part of the 5/24 rule.

Similarly, CitiBank has no limit to how many of its credit cards someone can have at any time, but it has restrictions based on timing. You can only apply for one business or personal card every eight days, and it will only approve two applications over 65 days. You can apply for one business card every 90 days.

CitiBank restricts how it pays bonus points to cardholders, but that doesn’t affect the application or approval process.

Wells Fargo doesn’t discuss credit card limits but says it reserves the right to limit the number of accounts someone has with the bank.

What to do:

Research the credit card company about the card you want and read if it has any application restrictions. Pay particular attention to card caps and the timing of your application, especially if you submitted another application recently.

Also, consider getting cards with companies you aren’t doing business with now. Some credit card companies make it easier than others to get a card, regardless of your circumstances.

11. You Made a Mistake on Your Application

Even minor mistakes in your application can create denials. Examples include an incorrect address, transposed digits on a Social Security number, and an incorrect income total.

Because credit card companies don’t reach out to prospective customers to control the application process, they just deny the application and let you decide whether to reapply.

Also, if you knowingly include a mistake on your application, the lender could report you for fraud.

What to do:

Re-read your application before you submit it. If you already have a copy of your credit report, cross-reference the information on the report with what you wrote on your application.

Does Credit Card Denial Hurt Your Credit Score?

Getting denied for a credit card doesn’t hurt your credit score. What hurts your score is the hard credit inquiry that’s part of the evaluation process. A hard inquiry can lower your credit score by five or 10 points for a few months.

The same is true for multiple denials — and multiple hard inquiries.

What to do If Your Application Was Denied

Don’t worry if a credit card company denies your application. Many lenders have appeals processes, and most of them also have ways to learn why they issued a decline. That is one of several steps you can take to move forward with getting a credit card.

First, read your rejection communication (likely a piece of mail but possibly an email) and learn exactly why your application was denied. The bank should say why it decided on a denial — and it almost certainly will be one of the reasons we listed above.

If the rejection is connected to your credit report, you have 60 days to request that the bank send you a copy of the report it used to deny you. (This should be free.) If there are mistakes in the report, take action.

Call or write the credit reporting agency to correct the error and then alert the credit card company about the mistake. Find out when you can re-apply once the reporting agency fixes the mistake.

If your application contained an error that hurt you in the decision-making process, you should also correct it. Again, call the bank or lending institution.

If you decide the bank’s denial is directly related to your poor financial status and you have nothing to appeal or correct, consider reaching out to a trusted family member and ask if they’re willing to make you an authorized user on their account.

An alternative is to ask whether they would be on a new account for you, one that will deliver a secured credit card.

If you want to submit a new application, wait at least six months. That’s long enough of a waiting period to improve your financial standing by making more on-time payments.

Also, consider applying for so-called alternative credit cards, such as secured cards and pre-paid cards.