{"id":751086,"date":"2018-12-12T18:29:20","date_gmt":"2018-12-12T23:29:20","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=751086"},"modified":"2026-03-09T18:34:57","modified_gmt":"2026-03-09T22:34:57","slug":"why-was-my-credit-card-application-declined","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/credit-cards\/why-was-my-credit-card-application-declined","title":{"rendered":"Why was my credit card application denied?"},"content":{"rendered":"

There are a variety of requirements to meet to get your credit card application approved. On the flip side, there are several reasons why your credit card application can be denied. Here are 12 of the most common reasons why credit card applications are denied and what you can do to improve your odds of approval.<\/p>

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12 reasons your credit card application may be denied<\/h3>

Most credit cards require similar eligibility requirements; however, some cards do have tougher approval requirements, while others focus on fast, easy approvals to help borrowers build their credit history and score. To help, here are the 12 most common reasons why your credit card application may be denied.<\/p>

1. Credit score is too low<\/h4>

Every credit card will set a minimum credit score requirement<\/a> \u2014 the lowest credit score an applicant to have in order to be approved. In general, however, expect to run into difficulties if your credit score is less than 650. (Credit scores in Canada range between a low of 300 to a high of 900.) If your credit score falls between 300 and 649, you still have credit card options but they will be limited.<\/p>

2. Bad credit history<\/h4>

When you apply for a credit card, the provider will request a copy of your credit report from one of the two credit bureaus: TransUnion and Equifax Canada. If you have negative information in your credit history \u2013 such as late payments or defaults \u2013 the provider may decide that you do not meet their eligibility requirements and decline your credit card application. To help, focus on building your credit score. For tips and suggestions, check out the Finder guide on minimum credit scores and credit cards<\/a>.<\/p>

3. Short credit history<\/h4>

Sometimes your credit card application can be denied because your credit history is too short. Remember, lenders will review your credit history \u2014 the record that shows all the accounts and repayments you make, over time. If this credit history is short \u2014 few accounts or no accounts beyond a year or two \u2014 the lender may decline your credit card application due to a short credit history. In this situation, you’ve done nothing wrong; you are simply new to building credit. To help build your credit history, consider applying for a secured credit card<\/a> or, if you’re a post-secondary student, a student credit card<\/a>, instead.<\/p>

4. High credit utilization ratio<\/h4>

Credit utilization \u2014 the ratio between how much credit you have access to and how much you’ve already borrowed \u2014 is one tool lenders use to assess your financial health. Experts generally agree that you should keep this ratio below 30%. For example, let’s assume you have two credit cards, one with a limit of $2,000 and the other with a limit of $5,000. But you paid for a car repair at a total cost of $4,500. Your credit utilization ratio would be 64% \u2014 since using the credit card to pay for the $4,500 of vehicle repairs would use almost two-thirds of your available credit. If your credit utilization ratio is too high, your credit score will be negatively impacted, as well, further increasing the chance of getting your credit card application denied.<\/p>

5. Too many recent credit applications<\/h4>

Applying for too many credit cards or other types of loans within the same time frame is a red flag to lenders. It signals to creditors that you’re desperate for money, which means your finances might be in danger. Plus, in order to assess your application, lenders have to do a hard check on your credit report, which lowers your credit score. Only apply for credit cards or credit that you absolutely need and always check the eligibility requirements.<\/p>

6. Recent changes in your circumstances<\/h4>

If you have recently moved or changed jobs and you haven’t updated this information across all your networks, it could be hard for the provider to verify your identity or access your credit report. As with mistakes on the application, you may be able to deal with this by calling the credit card issuer or by providing additional documentation.<\/p>

7. Income is too low<\/h4>

Creditors want to make sure you’re earning enough money to pay back any debt, including the balance you owe on a credit card. It’s why most credit cards have minimum income requirements<\/a>, generally ranging from $12,000 to over $80,000 per year. If your annual earnings are less than the required amount, your application will be declined.<\/p>

8. Insufficient employment circumstances<\/h4>

Stable, ongoing employment helps show providers that you can meet repayments for a new credit card. If your employment is temporary, part-time or hard to verify for some other reason, you may find it hard to get approval for certain cards.<\/p>

9. Other financial risks<\/h4>

When you apply for a credit card, you have to enter information about your income and expenses. If you have a lot of expenses in comparison to your income, the provider may determine that there is a high risk you won’t be able to make your repayments and therefore decline your application.<\/p>

10. Not meeting citizenship or residency status<\/h4>

While there are some credit cards available for temporary residents<\/a>, other cards are only available to permanent residents and citizens of Canada. Your application could be rejected if you can’t prove you have a valid Canadian address, or are a permanent resident.<\/p>

11. Your age<\/h4>

If you’re under 18 years of age, or the age of majority in your province or territory, then your credit card application will be declined. Learn more about getting access to credit if you’re under 18 years old in our full guide.<\/a><\/p>

12. Incorrect information on your application<\/h4>

Something as simple as entering your driver’s license number wrong or misspelling your address could mean the credit card provider is unable to verify your details and move forward with the application process. If a mistake is the reason your credit card application is declined, you may be able to resolve the situation with the provider by amending your application.<\/p>

Remember that everybody’s finances are different…<\/h4>

It’s important to keep in mind that credit card providers assess applications on an individual basis, so the specific reasons your application may be declined will vary depending on your specific circumstances. Some providers may be willing to discuss these details with you, while others may not. Either way, you can keep a copy of your application and go over the details above to figure out the likely reason it was declined. It also doesn’t hurt to contact a lender to discuss why your application specifically was denied.<\/p><\/div><\/article>

Do’s and don’ts for credit card applications<\/h3>

Do’s<\/h4>