Why was I rejected for a Credit Card?

Even with a good credit score, you may still be rejected when applying for a credit card. This may come down to the process a bank goes through when processing your application. This is known as underwriting.

Depending on the amount and the nature of the application (whether it is for a credit card or a mortgage) dictates how much of a risk the bank is taking when lending to a customer.

However, a credit card is unsecured (having no asset places as collateral against the borrowed money) therefore the bank is at a larger risk of losing money if you don’t repay the amount borrowed. 

The criteria when underwriting changes depending on which bank the application goes through.  

If you do not satisfy the following criteria then you may be rejected:

  • No late credit repayments
  • No outstanding credit
  • Employed will a decent income
  • A developed and extensive credit history
  • Few applications for credit borrowing – all approved

When you are declined from a credit application you will be notified in writing or via email correspondence with a few outlined reasons for the rejection. Always take note of these reasons, however vague, so you can begin to work on improving your score.

With SearchMyCredit, you can avoid rejection through the use of our personalised product comparison tables, where we only show you products we believe are suitable for you when considering your credit score, which we provide for free!