Why was I declined for a credit card?

Key takeaways

• Payment history, credit history length, electoral roll registration, current credit utilisation, and frequency of credit applications all affect your credit score

• Multiple factors determine whether your credit card application will be approved or declined

• There are a number of simple steps you can take to improve your chances of being accepted for a credit card

• Rejection by one lender doesn’t guarantee rejection by others

• Contact the lender directly or write to their head office if you believe you’ve been unfairly refused credit

Being turned down for a credit card can be frustrating – and worrying – especially if you’re unsure why you’ve been rejected. Should you reapply for a different card straightaway or try to find out where the problem lies and address it?

We explain some of the reasons your application might have been unsuccessful and what you can do about it.

What are the reasons why I could be declined for a credit card?

It can be stressful and inconvenient being turned down for credit – particularly if you need the cash for something urgent. But it can help to investigate and find out exactly why you were refused. 

Your credit application may have been rejected due to a range of factors, including:

• A poor credit rating: If you regularly miss repayments or go over your credit limit, this can have an adverse effect on your credit rating. The lower your credit rating, the more likely you are to be refused credit when you apply

• A limited credit history: If you haven’t previously taken out credit, or only rarely do so, your credit history will be thin. This means lenders won’t have enough information to judge whether you’d be a good applicant, so they’ll be more likely to reject your application

• Your employment history: Lenders also consider your employment status and history when making their decision. If you’ve changed jobs frequently or aren’t earning enough, your lender may see you as a higher risk applicant

• Bankruptcies and CCJs: If you have any bankruptcies or County Court Judgements (CCJs) on your credit file within the last seven years, these will indicate to lenders that you’ve had financial difficulties. Providers could see you as a risky applicant, so you’re likely to be refused credit if you apply

• Mistakes on your application: Even small mistakes, such as giving the wrong name or address on a credit card application, could be enough for the lender to refuse you credit. This is why it’s so important to thoroughly check your application over before submitting it and request any mistakes be corrected

• Identity theft: If your credit report is in good shape and your application was in order, you may want to consider the possibility of identity fraud or theft. If you think this may be the case, you should contact your bank or lender as well as Action Fraud, the UK’s National Fraud and Cyber Crime Reporting Centre

• Lender’s policies: Different lenders will have different criteria when it comes to lending. For example, some lenders will have higher income requirements than others. Generally, credit builder cards which are designed to help you step up your credit score are easier to get, as their lending criteria won’t be as strict as other credit cards 

If you're worried about money and it’s affecting your mental health, visit our Money Talks hub for guides and support.

Why was I declined for a credit card with a good credit score?

If you have a good or excellent credit score and have been turned down for credit, it’s worth investigating the reason. 

Ultimately the lender is the only one to know why your application was declined, but it may be possible to get to the bottom of the problem. There could be a number of reasons why you were refused: 

• Employment status: It could be that your employment status indicates that you might not meet the lenders’ affordability criteria, perhaps if you’ve changed jobs and the information supplied looks inconsistent. Check if they have a minimum income requirement and that your earnings exceed it

• Application error: If you made an error on your application  -  and even a small slip can lead to an automatic rejection  – this could be the reason for the refusal

• Financial connections: Another reason might be that you have a financial link to someone who has a poor credit rating. This can lead the provider to see you as more of a risk. You will be linked financially to anyone you share a financial account with – such as a joint bank or credit card account, or a joint loan or mortgage

• Large debt: You could be turned down if you have a high amount of existing debt even if you have an excellent credit score and no previous problems in repaying any of it

What should I do to improve my chances of getting a credit card?

There are several ways you can increase your chance of being accepted for a credit card.

Some are quick and easy and others may take more time or thought. Here's how you can get started...

Quick tips to improve your credit score

• Fix errors on your credit report

• Register on the electoral roll

• Be employed in paid work for a good length of time

• Increase your income

• Don’t miss bill payments

• Only use a low percentage of the available credit you already have (known as credit utilisation)

Keen to know more? Get up to speed with our guide to improving your credit score.

Will a credit-builder card improve my credit score?

Credit builder credit cards are specifically tailored to people who have bad credit scores, or little-to-no credit history.

If you match that description, they're also the best chance you've got of being accepted for a credit card by a lender.

Better still, as long as you pay off your balance at the end of each month your credit score should rise over a period of four to six months.

Other helpful guides

• Should I turn to Buy Now Pay Later?

• How many credit cards can you have?

• Can you get a credit card if you’re unemployed?

Compare credit builder cards with MoneySuperMarket

If you’re looking for a credit builder credit card, you’ll find great deals when you compare using our eligibility checker. Searching this way won't further harm your credit score. 

Just tell us a little about yourself and your finances, including your income and employment status, and we’ll show you a list of credit cards suited to you – plus your chances of being accepted for each deal. That way you can apply with greater confidence. 

MoneySuperMarket is a credit broker – this means we’ll show you products offered by lenders. We never take a fee from customers for this service. Instead we are usually paid a fee by the lenders, but the size of that payment doesn’t affect how we show products to customers.