Yes. You can experience credit
denial in spite of having a good score.
1. There are different credit scores and you might be checking only
one
2. Your income might fall short of the cutoff by even $1
3. A creditor may not approve even if you have 1 negative item
4. A creditor may feel you are already overloaded with debt
Yes, I totally agree with davensmith8, there might be several
unconventional reasons for your credit denial.
I believe there are few more reasons also for which your credit gets
declined.
1. You might have applied for the same credit card
recently. Many credit card providers allow 30 to 90 days waiting period
before letting you apply again.
2. The application you have made might contain some
missing information about your financial status. Skipping few boxes in
the application form may be the reason.
3. I don't know your age but, may be you are too young
to apply for a credit. You cannot apply as the sole account-holder of a
card if you are under the age of 18. It is because the credit card
company cannot take legal action against you if you don't pay off a
bill, as you are a minor.
4. Your employment history might be another reason. If
your employment record shows that you have a tendency to shift jobs
frequently, your earning strength might be considered unstable. So,
lenders won't take the risk depending on your income.
Having a good credit score
doesn’t mean you’ll get approval for a loan easily. There are other
factors that are taken into consideration such as -
You have pyramiding debt. That means, you’re paying off existing
debt with new credit repeatedly. This shows that you don’t have enough
funds to handle debt.
You’ve crossed 50% or more of your debt utilization
ratio.
Your lenders have a high standard of giving out loans.
You have more than one or two hard inquires within a short span of
few months. This indicates that you’re credit hungry.
You’ve never used a credit card before. Your lenders might fear
this because they’re not sure about how you will handle the borrowed
money.
Your loan approval might get rejected due to industry-specific
problems, local ordinances or climate conditions.
Only your lender can explain
the reasons behind the rejection. You should have received a notice in
which the factors will be explained clearly. Good credit score is
important to get the loan approval. But other factors such as
insufficient income, high balances on credit cards, too many credit
cards and huge debts are also crucial factors that can influence the
matter.
1. There are different credit scores and you might be checking only one
2. Your income might fall short of the cutoff by even $1
3. A creditor may not approve even if you have 1 negative item
4. A creditor may feel you are already overloaded with debt
Sub: #1 posted on Thu, 05/26/2016 - 00:04
(Posts: 14 | Credits: )
Yes, I totally agree with davensmith8, there might be several unconventional reasons for your credit denial.
I believe there are few more reasons also for which your credit gets declined.
1. You might have applied for the same credit card recently. Many credit card providers allow 30 to 90 days waiting period before letting you apply again.
2. The application you have made might contain some missing information about your financial status. Skipping few boxes in the application form may be the reason.
3. I don't know your age but, may be you are too young to apply for a credit. You cannot apply as the sole account-holder of a card if you are under the age of 18. It is because the credit card company cannot take legal action against you if you don't pay off a bill, as you are a minor.
4. Your employment history might be another reason. If your employment record shows that you have a tendency to shift jobs frequently, your earning strength might be considered unstable. So, lenders won't take the risk depending on your income.
Hope this will help.
Sub: #2 posted on Tue, 05/31/2016 - 07:21
(Posts: 467 | Credits: )
Sub: #3 posted on Wed, 06/01/2016 - 19:43
(Posts: 166 | Credits: )
Sub: #4 posted on Mon, 06/06/2016 - 05:09
(Posts: 1234 | Credits: )