When can’t you sign up for a credit card?

The rejection of applications to contract credit card is frequent. The reasons why a bank or financial institution rejects a user’s application for a card are varied, but they all depend on the customer’s personal finances.

Credit cards, as a product oriented to financing, are subject to a study on aspects of the applicant’s finances, such as credit history, income, etc. Therefore, the main reasons for rejection have to do with these aspects.

How many cards should you have?

There is no unanimity when it comes to assessing how many cards it is advisable for the same user to use. It depends on many factors including, of course, personal finances. However, the usual recommendation is not to use a large number of credit cards and not to disperse the credit debt of these products.

A good basic usage model might be to use the following cards:

  • A debit card for regular payments
  • A credit card for financed or exceptional payments.
  • A virtual card for Internet payments

Bad credit history

Having a bad credit history is a reason for refusal of a credit card. It should be noted that this credit history is not limited to defaults with other credit cards, but can also affect other elements such as loan defaults or any type of financial default.

On the other hand, being included in the delinquency registers can also be a reason for direct rejection of a credit card application.

Contractual status and income

When assessing whether or not to grant a credit card, financial institutions can also check data related to the user’s contractual situation and income.

It is easier to obtain a credit card with a stable employment contract and a certain length of service than with a temporary employment contract and little length of service. Similarly, especially depending on the credit amount of the card, the user’s regular income is essential when granting the card.

Levels of indebtedness

Levels of indebtedness are another element for which a credit card may be rejected on application. Even if the user has a regular income, job stability and a good credit history, if he/she has a very high level of indebtedness, for example, with other credit cards, mortgages, loans, etc., it is possible that he/she will not be granted the card he/she is applying for.

In addition to the three issues already reviewed, it should also be taken into account that banks and financial institutions that grant credit cards value other elements such as:

The age, where it influences being very young or very old, although it is not a determining element, it can also be an element of value.

The linkage with other products of the entity, having linkage with other products of the entity favors and facilitates the contracting of credit cards.