Declined Applications

If your application is denied, you can ask the card issuer for the contact details of the third-party credit bureau that checked your credit and ask them for a copy of your credit history (this is normally available for a fee).

If your credit history shows negative entries that are accurate, you might need to look for a card issuer that specialises with higher risk customers. However, if you find mistakes in your credit history, you should inform the credit bureau and discuss with them how to update your records with the correct information.

• Usually most credit card applications are declined for the following reasons:
• The third-party credit bureau’s records show that you have a poor credit history.
• You have a poor history with the same organisation you are applying with.
• You just started a new job, or you are a freelance worker (i.e. consultant, contractor, or you work from home).
• You just changed addresses, or have not stayed in one address for over 1 to 3 years.
• Your annual income was below the minimum required by the card issuer.

In these cases, you can apply with another card issuer, or you can choose to work for at least six months to improve your credit history. If you opt to apply with another issuer, remember that each time you are denied credit is a mark against you in your credit history.

Credit History

A non-existent credit history can make it hard for you to apply successfully for a credit card.

Fortunately, there are steps you can take to build a good credit history:

• First, apply for a card from an established company. Usually you will be approved for an initially low spending limit.
• Check with the issuer to find out whether they report to credit agencies. You can better improve your credit history if it is being recorded by a third-party.
• Take care of the purchases you charge to your card and send your payments promptly.

Remember that a good credit history will work to your advantage not just when it comes to credit cards. It will also help you when applying for insurance policies, mortgage and card loans.