Work Out Why It Was Rejected

There are plenty of reasons why card providers choose to reject credit card applications. Here are some of them.

• You are not eligible. To apply for a credit card here in New Zealand, you must be a New Zealand citizen, not bankrupt, and over the age of 18. Certain card providers may have further eligibility requirements regarding income and creditworthiness, especially on higher end cards. If you don’t meet the stipulated eligibility requirements, your application will be declined.
• You made an error on your application. When you apply for a credit card, you need to provide a heap of information. If you enter any of that information incorrectly, such as your driver’s license, the card provider will not be able to verify your identity and your application will be rejected.
• You didn’t provide the required documentation. The card provider needs to check you are who you say you are, and all the details you have provided are true. If you don’t provide the correct documentation, the provider will decline your application.
• You don’t have stable employment. A card provider needs to know you will be able to repay your card purchases. If you don’t have a stable job with a steady income, you may be deemed too risky and your application will be declined.
• Your financial situation is not viable. The card provider will look at your incomings and outgoings to determine whether you will have enough to pay off your balance each month. If you tend to spend more than you make, and you don’t have much in the way of savings, your application may be rejected.
• Your credit history is not great. Potential credit providers use your history with credit to determine how well you might deal with further credit they choose to provide. Lots of missed or late payments could signal a potential problem, resulting in the application being declined.

Make Changes

If it is not immediately obvious why your application was rejected, you may need to do some digging.

• Start by checking the small print and eligibility requirements for the card you applied for.
• Look over your application and documentation to check for any errors, and make sure everything is in order.
• Check your credit by applying for a copy of your credit record from each of the three credit reporting companies in New Zealand (Centrix, illion and Equifax). You can apply for free, but if you need your credit record in a hurry, you may have to pay.
• Apply to have any errors on your credit record amended.

You may have the option of contacting the card provider to ask for the explanation behind your declined application. Some card providers may offer more detail than others. But, when you know what the problem was, you can make changes to ensure it isn’t a problem next time.

Before You Apply Again

As we said, it’s not a good idea to rush into making another application before finding out what went wrong with the first one. Why? When you apply for credit, that application – whether it is successful or not – is recorded on your credit record. That means each rejected application is on file for each new potential card provider to see.

If you apply again and again – and are rejected again and again – each card provider assessing your application will see those rejected applications, and will likely deem you to be too risky to provide with credit.

Instead, take some time to work on making changes. If your rejection was simply down to human error or incorrect documentation, you may be able to apply straight away and have your application approved. On the other hand, if your application was declined due to your job, income or creditworthiness, put some time into remedying those issues.

• Work on keeping stable employment.
• Create a budget that allows you to manage your finances more efficiently.
• Pay down your debts.
• Build up your savings.
• Always make credit repayments on time.
• Update all your personal info with your employer and official bodies so that you can be easily identified.

Before you apply, compare your options using CreditCard.co.nz and make sure the card you choose suits your needs, your spending habits, and your ability to repay what you owe. Check the small print carefully to ensure you meet the card’s eligibility requirements.