What to Do if You’re Rejected for a Student Credit Card

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What to Do if You’re Rejected for a Student Credit Card

A student credit card might be a fantastic alternative if you are in college and want to acquire a credit card for emergencies or to start developing your credit. They are simpler to qualify for if you don’t have a long credit history, and you can receive one even if you just have a part-time work.

Your application, however, is not guaranteed to be granted. Depending on your circumstances, you may be refused due to your credit history, student status, or other factors. Here’s what you should know if you’re asking, “Why am I being refused for student credit cards?”

Key Takeaways

  • Student credit cards may be simpler to get than other types of cards, but acceptance is not guaranteed.
  • Card companies examine the information on your application as well as your credit history and income.
  • You may be declined for a variety of reasons, such as bad credit or a lack of money.
  • If you are unable to get a student credit card, you may be able to obtain a retail credit card, a secured card, or a credit builder loan.

Why Am I Getting Denied for Student Credit Cards?

For student credit cards, card issuers often have less stringent borrower restrictions. You are not expected to have a long credit history or a large salary since they are created for young folks in college. However, denials continue to occur. Your student credit card application might be denied for any of the following reasons:

1. Poor Existing Credit

While you may receive a student credit card with little or no credit history, card issuers may refuse you if you have any negative marks on your credit record. If you’ve defaulted or gone behind on payments for other types of credit, such as student loans, retail credit cards, or an auto loan, you’re unlikely to be approved for a student card.

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2. Lack of Income

You don’t have to earn a lot of money, but card companies will want to see that you can pay your credit card payments.

Current regulations allow you to apply for a credit card before the age of 21 provided you can demonstrate that you will be able to make the payments, either via your own income or by having a cosigner who applies with you and guarantees payments. 1

You will be refused if you do not earn enough money and no parent or relative co-signs your application.

3. Number of Credit Inquiries

When you apply for a student credit card, the card issuer will do a credit check on you. If your report shows a string of recent hard inquiries, the card issuer will see you as a higher-risk candidate and will most likely deny your application. If you’ve recently had numerous hard credit inquiries and were refused, you may wait a few months before applying again. (Please keep in mind that requesting your credit report yourself is considered a soft inquiry and will have no negative impact.) 2

4. Insufficient Proof of Enrollment

Most student credit cards demand confirmation of enrollment in college. You may be required to provide a college acceptance letter or your estimated graduation date, as well as utilize a college email account. If you do not supply the required information, the card issuer will most likely conclude you are not enrolled in school and will decline your application.

5. Identity Theft

Identity theft is unfortunately all too widespread, especially among young children. 3 If criminals acquired your information, they might have used it to start credit accounts in your name, harming your credit. You are unlikely to qualify for a new credit card unless you remedy the problem. See below for instructions on how to see your credit report.

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What to Do if You Get a Student Credit Card Rejection Letter

If you’ve been denied for a student credit card, you may correct the situation and qualify for other types of credit by following these three steps:

1. Review the Notice

When a credit application is declined, the issuer is obligated to tell you and explain why, often in the form of a letter known as an adverse action notice. For example, the letter may state that you have too many hard queries on your credit record or that you do not have enough income. You may utilize that information to enhance your credit and eventually qualify for a card.

2. Check Your Credit Reports

It’s a good idea to check your credit reports to ensure there are no inaccuracies or bogus accounts. AnnualCreditReport.com provides free credit reports to consumers. 4

Normally, each of the three main credit bureaus—Equifax, Experian, and TransUnion—is only allowed to provide you with one free credit report per year. 5 However, due to the epidemic, you may now examine your credit reports as often as weekly at no cost. 4

If you discover any errors on your credit report, you should file a dispute with the appropriate credit agency. On their websites, the agencies explain how to do so.

3. Explore Other Credit Options

If you are unable to qualify for a student credit card, you have the following choices for establishing credit and developing a great credit history:

  • Secured credit cards are designed for persons who have no or little credit history. They demand a security deposit, but as you make payments, your credit will improve and you will be able to apply for a traditional, non-secured credit card. When looking for a secured credit card, choose one that reports your account activity to all three main credit agencies.
  • Store credit cards: These cards, which can only be used at a certain merchant, are frequently simpler to get than other types of cards. Making all of your payments on time can help you develop credit. However, retail credit cards can have very high interest rates and other drawbacks.
  • Credit builder loans: Credit builder loans are modest loans offered by certain banks and credit unions that are expressly intended to boost your credit. As you make loan payments, your payment history is submitted to credit agencies, assisting you in building credit.
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