Not Qualifying for Credit Cards
 You Can Also Be Turned Down for Credit Cards
Although there are many other reasons for being denied a new credit card, a poor credit rating is usually a determining factor. In fact, is quite common for people to first learn of their poor credit by being turned down for a credit card.
The situation is made worse by excessive credit card applications showing up as inquiries on your credit report. Too many inquiries by credit card or other lending companies can also ding your credit rating.
Some may argue that using credit cards when you already have bad credit is not a good idea. This is definitely true. However, using credit cards responsibly—not using more than 35% of the credit limit and making all payments on time—can actually increase your credit score. (Learn More About Fixing Bad Credit)
Once your financial situation is at the point that you no longer have a credit card, you face a new societal stigma. Even if you have the cash on hand, there are many goods and services that are out of your reach:
- Rental Cars
- Hotel/Motel Rooms
- Airline/Train Reservations
- Just about any purchases made online or over the phone
You also miss out on out on the many additional services provided by credit card issuers:
- Fraud and Identity Theft Protection
- Special Product Offers Like Travel Insurance
- Spending Rewards
If you've recently been turned down for a credit card, the company is required to give you the reason for the denial and a chance to review your credit report for free. Take advantage of this opportunity to review your credit report for errors, omissions, or other problems. Work with credit professionals to dispute errors or correct negative items and try again.
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