Credit Card Application Rejection Help?

Question

Every time I have applied for a credit card my application has been rejected. I have a secured visa credit card that I am very careful with, I have paid off the balance in full every month. I need some help with understanding the reasons for rejection that appeared on my credit report and how to fix them so that I can finally be approved for a credit card eventually. My credit score as of the report, run about a month ago, was 698. Here are the reasons for rejection that appeared on the credit card application rejection letter:

1) Ratio of satisfactory trades to total trades is too low
2) Insufficient credit history
3) Low amount of credit available on bank revolving accounts
4) Number of established accounts
5) % of balance to credit limit too high on revolving accounts
6) Too many accounts with balances
7) Too many inquiries last 12 months

So, if you have any further explanation as to what any of these 7 statements mean and how I can fix them please let me know. Do I need to fix all 7 of these points in order for an application to be accepted? For #3, if I transfer money to the bank account linked to my credit card, will that eliminate this statement? #5 I imagine can be fixed by paying off the balance on my credit card before applying for a new one (I should've thought of that before applying previously). In regards to #6 there was only one account with a balance at the time of application. How long can you estimate for #2 and #7 to disappear?

Thanks very much in advance for any help

Answer 1

First, were all these things actually checked on that rejection form letter? All 7 may not actually apply to you.



How long have you had that secured card? You have to use the card for at least a year to qualify for a regular card. If you pay the balance in full every month, #6 and #5 wouldn't apply.



If this secured account is your only account, that would explain #1, #2, #4 and maybe even #3 (assuming the secured card is only a few hundred dollar limit).



You really can't "fix" the first 6 items. It's a matter of time and building history. You need at least 24 months of consistent, on time payment history.



Applying for multiple credit cards in a short period of time will absolutely get you denied, even if you have a good history. It looks like you are trying to take on too many new accounts. Stop applying for new cards and wait at least 6 months before applying again.

Answer 2

A credit score is based on a 12 month activity and goes up 5 to 10% per month providing you are paying on time. To have a score of 698, the card should have at least 24 months of on time payments. If this is not the case, then the credit score is not correct.

Answer 3

can tell you are applying for credit cards left and right....way too many inquiries on your



records/stop doing that first off. it also sounds like you are carrying hi balances on open



cards already/sounds liek you are over extended and need to retire the bills there/get rid



of balances/quit using the cards. every time you apply for credit your score takes a hit..



and your records on file arent very good to start with. get rid of the bills/start paying for



things and quit charging it. you have a secured card for a reason cuz no one will touch



you for a normal card/poor risk to them

Answer 4

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4. Then we will check about the defaults / overdue amount to be paid by you to the financial institutions.



5. We will first check with you (since when you have defaulted or not paid the amount to the financial institutions)



6. Then we will check with the bank about the closure amount.



7. After paying the closure amount to the creditors.



8. We will get you the closure letter/ No due certificate letter from the bank.



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12. After updating all the records in CIBIL, your CIBIL will be cleared & then loans should not get declined.





CIBIL

:-collects and maintains your personal information and records of your payments pertaining to loans and credit cards. This information is then used to create credit information report(CIR)and credit scores which are provided to lenders in order to help evaluate and approve/reject loan applications/credit cards

Major factors affects for credit score

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1 Payment history.

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2 High utilization of credit limit.

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3 Higher percentage of credit cards or personal loans(also known as unsecured loan).

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Different types of ownership seen in the cibil report

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Causes of negative or bad credit history

Irregular payment history, Write-offs and Settlements, High Current Balances, High number of Enquiries.

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Answer 5

Too many inquires means you applied too many times. If you keep applying this often, then every application will keep being rejected. To get approved, ever, you have to stop applying so much.



#7 will disappear one year after you stop applying. It won't disappear, ever, if you keep applying this often.