Ask The Money Manual: Why Do My Credit Card Applications Keep Getting Rejected?
contact@themoneymanual.com. This week, we attempt to tackle why some people might get denied for a credit card.
Question: I’m a recent college graduate and I’m working in the tech industry in San Francisco, CA. I want to get a credit card so I can start benefiting from all the rewards that having a credit card offers. But every time I apply for one, I get rejected. My job pays well and I’ve only been late on paying back my student loans once, so I don’t understand what’s the problem. Got any advice? Thanks, Craving Credit in SF.
The Money Manual Answer: Hey Craving Credit in SF! I know exactly where you are coming from: It took me ages to get myself a good credit card that rewarded me with miles and cashback. The first thing you need to do to understand why you are having trouble qualifying for a rewards credit card like the ones offered by American Express or Mastercard is to check your credit score. The best way to do that is through Credit Sesame which will send you your credit score completely for free.
In this weekly column, we answer readers’ pressing financial questions. No question, big or small, is off limits. Ask away by emailing us at Why Your Credit Score Matters
Your credit score is the number one factor that determines if you will qualify for your credit card of choice. While I have no doubt that you are a trustworthy and responsible person, your credit score works differently than a judge of character. A credit score is made up of five different things:- 35% Payment history
- 30% The amount of debt you have compared to your available credit
- 15% The age of your accounts
- 10% The number of new applications for credit
- 10% Your mix of credit items from student loans, personal loans, credit cards, auto loans, etc.