8 Reasons Why Your Credit Card Application Got Rejected

Wondering why your latest credit card application got rejected? Fret not, here's eight reasons why the bank might have given you the cold shoulder.

Rejected Credit Card Application

Feeling hurt because your latest credit card application just got rejected? Don't take it too personally as hundreds if not thousands of credit card applications get thrown out on a daily basis. Just cause one bank throws out your application for a credit card, doesn't mean that you're not destined to own one. 

Perhaps you're just applying for the wrong type of card or might need to make several lifestyle changes to improve your credit rating. With that said, here's 8 reasons why your latest credit card application might have been declined.

1) You Made a Mistake While Filling Up The Application Form

Don't laugh, everyone makes mistakes at some point in time so this scenario is entirely feasible. Suffice to say, the Bank cannot process your application if you forgot to fill in or incorrectly wrote down certain information. This is especially true if the information is vital such as your NRIC number for example. To avoid making this simple and at times laughable blunder, it is always advisable to double check all your information before submitting any form.

2) You Don't Earn Enough

A credit card is essentially a tool from which you can borrow money to make purchases and subsequently pay it back later (with interest of course). With that in mind, everytime you apply for a card the bank has to determine whether you have the financial capacity to pay off what you may potentially owe. It is for that very reason that every card has a designated minimum income amount. 

In general, excluding supplementary cards, the minimum income that you need to be earning in order to own the most basic of credit cards is RM24000 per annum. If you earn anything below that, your application is not likely to get approved so you might want to consider just using a debit card for now.

3) You Haven't Borrowed Before

While not quite as bad as bad credit history, applying for a credit with no credit history at all may hinder your application! Even if you meet all the criteria required, lenders like to see that you have a history of managing debt well as this reassures them that you will repay your debt on time. This issue becomes more profound when you choose to apply for a more "advanced" credit card as your first card.

4) You Haven't Been Working Long Enough

This reason generally only applies to individuals who haven't been working for a very long time, namely, fresh graduates. As a general rule of thumb, most banks usually require a minimum working time period (with EPF contribution) of at least 6 months with the same company in order for your credit card application to be approved, assuming all other requirements are met. 

This requirement is usually set in place to ensure that the cardholder has some form of stable income as most employees are typically issued confirmation before the 6 month mark of their tenure with their respective company.

Credit Card Application Denied

5) You Haven't Been Paying Your Existing Current Credit Card Bills Regularly

Whenever you apply for a new credit card, the bank essentially does a sweep of all your previous spending history (credit check). If you presently own or have previously held any credit cards, then the bank will want to look at your history with those cards. For example, if you currently own a credit card and have been repaying all your purchases within the due date in order to keep a low balance, then the bank should have no problem issuing you another card.

Conversely, if you haven't been repaying your bills on time and have started snowballing a large amount of interest or had your card cut due to non-payment, then the bank might be less inclined to issue you a second card. Hence it is extremely important to try to pay down your balances before applying for a credit card if you want to boost your chances of getting an approval. Remember, the more debt you hold, the lower your chances of approval.

6) You've Been Busted for Fraud in The Past

When it comes to Crime, the general rule is “once convicted, never forgotten”. Your criminal record follows you for life and can influence everything from job applications to even credit card applications. The latter is especially true if the crime committed involves monetary fraud. Monetary fraud is formally defined as criminal deception intended to be used for financial gain, examples of which include tax evasion and forgery. 

A blemish such as fraud on your record can severely reduce the bank's confidence in you, which may lead them to deny giving you a credit card.

7) You Already Have Too Many Credit Cards

With an array of different credit cards with various benefits available on the market, it's easy to just go crazy applying for every card that you see. After all, you can never have too many cards right? Wrong! Most banks might be less inclined to issue new cards if the applicant already has a significantly large number of existing cards (e.g. 5 or more). 

Unless you rake in a massive amount of income annually and keep a spotless credit record, don't expect your fifth or sixth credit card application to get approved.

8) You Applied for Too Many Credit Cards At Once

This is especially true when visiting exhibition fairs where swarms of credit card booths await unknowing patrons to snag them into applying for a credit card. As you go from booth to booth applying for card after card, the likelihood of getting all applications approved slowly dissipates. 

As mentioned before, credit card companies usually check everything and anything about you whenever you apply for a new card. Hence, if the bank sees that you're applying for more than one card at the same time, they might be less inclined to grant you an approval.

Get the right Card for you Easy

0 comments

Agree or disagree with this post? Questions? You also have your word!

  • Anne

    My problem is my credit card application is rejected without any reason given from the banks.

    Reply
    • Carl Lee

      Same here

      Reply
      • RinggitPlus

        Hi Anne,

        It is difficult to pin point exactly the reason at at times, you could try writing in for a clarification or do your own checks with CCRIS, CTOS, RAM CI and the like.

        Thanks.

        Reply
      • Desmond Maker

        My credit Card was Rejected because my job is too dangerous, Is that possible??

        Reply
        • RinggitPlus

          Hi Desmond!

          Yes, it is. As we've covered in our other articles before, it's up to the banks to determine whether or not to accept or approve your application. But because of that, don't get discouraged when applying! Other banks may still be able to accept your application.

          Reply
        • CHOO

          May I Know, why my credit card application is rejected without any reason given from the banks. And also when I call that girl I apply from she, she said will call me back, but no, after that I call she don't want to pickup my phone. It's good service.

          Thanks

          Reply
          • RinggitPlus

            Hi Choo,

            It's difficult to pinpoint exactly the reason sometimes, you could try writing in for a clarification or do your own checks with CCRIS, CTOS, RAM CI and the like
            Hope this helps!

            Reply
          • Rasheed

            How long does it take usually for credit card approval?

            Reply
            • RinggitPlus

              Hi Rasheed,

              It differs from bank to bank, but it can be between 7 to 30 days

              Reply
            • Tan

              My UOB credit card rejected because of previous application was fail, izit i have to wait few month only can reapply?

              Reply
              • RinggitPlus

                Not necessarily, you can reapply as soon as you're able to as long as your credit score is not the reason you were rejected.
                We hope this helps!

                Reply
              • Ray

                I applied for Citibank Cash Back card few days ago and got rejected yesterday. Now I am planning to try go for other banks. Is that possible?
                This is my 1st time registering a credit card.

                Reply
                • RinggitPlus

                  Hi Ray,

                  Sure you can. However, we would recommend waiting a week or so while steadily paying off your debts in case your hard inquiries show up in your credit report, which might make banks less likely to approve your application.
                  Good luck and we hope this helps!

                  Reply
                • Michael

                  I heard Public Bank will not approve any credit card if one already holding 5 or above credit cards with other banks although your income is very solid and with perfect financial record. Is this true?

                  Reply
                  • RinggitPlus

                    Hi Michael,

                    If you have 5 credit cards under your name, the issue might not be that your finances aren't in order.
                    It might instead be that you have a high debt service ratio, which can negatively affect your chances of bank approval. We wrote an entire write-up that explains debt service ratio for you here: https://ringgitplus.com/en/blog/Banking-Basics/The-Debt-Service-Ratio-Explained.html
                    Hope this helps!

                    Reply
                  • Chan

                    Hello. Mine is rejected because i dont have any credit history. May i know how to apply a credit card for people like me who dont have any credit history?

                    Reply
                  • Adam

                    My application was rejected due to my low score, I dont have any credit history except for my PTPTN which i haven't fully repay yet but there is no outstanding charges currently. There was an outstanding payment but I started clearing off my outstanding payment for the past 6 months. Please advise

                    Reply
                  • Tyler

                    hi,i get my mbb credit card on 24-5-2017 can i apply other credit card or need to wait after 3 months?

                    Reply
                    • RinggitPlus

                      Hi Tyler,

                      It's recommended that you wait for a while before applying for another card since frequent credit applications might reflect poorly on your credit score.

                      Reply
                    • Ooi Hooi Sim

                      My application for alliance bank credit card was rejected because reason of my epf contribution based on 8% and not 11%.. The bank told me my epf contribution must at least rm220.. my salary rm2000.. but epf contribution is based on 8%.. Employer= rm260 (13%)
                      Me= rm160 (8%)
                      We have option to choose 8% or 11%.. but my salary rm2000 is true.. But still rejected because epf contribution less than rm220..

                      Reply
                      • RinggitPlus

                        Banks have their own criteria with which they gauge whether or not to approve or deny a loan. In this case it looks like you might do better if you try your luck at a different bank or for a different card.
                        You can check out our comparison page to see which Malaysian credit card can be the best one that fits your needs: https://ringgitplus.com/en/credit-card/
                        Thanks for your question!

                        Reply
                      • Angie.

                        I recently applied for a Std Chart card and was rejected as I had overdue balance (tunggakan) for PTPTN.
                        I have repaid the overdue amount and the balance are being paid of by direct debit instruction.
                        However, I was told by Std Chart agent that i will need to wait 3 months before they can re-apply. Yet another agent (of different bank) told me they could process it as long as I can provide a proof of repayment to PTPTN.

                        So, question is.. Is the 3-months wait applicable to all banks ?

                        Reply
                        • RinggitPlus

                          Hi Angie,

                          The three-month waiting period is not applicable for all banks. Different banks will have different criteria for when they will allow someone to apply after they had their credit score up, so its best to ask around to make sure what banks expect from you.
                          Thanks for your question, we hope this helps!

                          Reply
                        • RO

                          How about for expatriates if she/he have a bad credit score in the country she came from then applied for a credit card in Malaysia and was rejected. Is that the reason why she/he got rejected? Does the banks in Malaysia also sweep of all your previous spending history (credit check) in other countries?

                          Reply
                          • RinggitPlus

                            Hi RO,

                            Credit score companies in Malaysia only store data originating from financial service providers in Malaysia, so if an expat gets rejected, it's probably not connected with their credit history in a different country.
                            Thanks for your question and we hope this answer helps!

                            Reply
                          • Debbie

                            Hi, i have apply citibank n uob card recently...i have a low basid salary n fix allowance that total up 2k per month ,problem my epf contribuction is basid on my low basid without add in my allowance n it was contributed 11& n 13% my net profit i is eveymonth only 1.8k around...will this effect my application for apply credit card n get rejected??

                            Reply
                            • RinggitPlus

                              Hi Debbie,

                              From what you're telling us, it doesn't sound like you're in heavy debt or are a bad paymaster. So as long as you qualify for the minimal income your application should be okay. Try different banks and see how it goes for you.
                              Thanks for your question!

                              Reply
                            • dan lim

                              My ccris only 2 items (both are housing loan which constitute only 44% from my nett salary). I do have ctos before but both have been fully settled and it shows in the report stating it has been fully settled (1 in June 2017 & another one in Nov 2017). Been working for 20 years plus. But all my credit card applications have been rejected by several banks except 1 bank but they only gave me 5k limit. Can I know what are the possible causes of it has been rejected?

                              Reply
                              • RinggitPlus

                                Hi dan lim,

                                Your debt clearance since November 2017 is quite recent. We recommend you wait for a few months and maintain the clean record before you apply for another loan. This might be the case for them rejected your application.
                                Then again, remember that banks reserve the right to reject your application for reasons they don't need to fully disclose. You may have better luck applying to different institutions just in case.

                                Reply
                              • Jessica

                                I got rejected for no reason, my CCRIS is CLEAN, i pay my Car+PTPTN loan on time =(.

                                Reply
                                • RinggitPlus

                                  Hi Jessica,

                                  Banks and lenders do reserve the right to reject your application without fully disclosing the reasons.
                                  Try checking out our comparison tool and applying from a different bank? https://ringgitplus.com/en/credit-card/
                                  Thanks for your question and we hope this helps!

                                  Reply
                                • annie

                                  How to know if l hv own credit card money at RHB and can i do monthly payment ( how to posses this problem )

                                  Reply
                                  • RinggitPlus

                                    Hi Annie,

                                    If you want to know whether or not you still have a credit card account with the bank, the best way is to visit a branch and find out yourself by contacting them directly.
                                    Thanks for your question and we hope this helps!

                                    Reply
                                  • KT

                                    Do you know the reason why banks do not disclose the reason they reject your application? Because all the data they have of you is your own private data, so I don't know why I have no access to my own privacy. It could be as simple as "no home phone number given" or as grave as "blacklisted due to PTPTN debt" (which the applicant was not aware of coz the debt of RM200 was not paid 8 years ago, even though now she regularly pays thru potong gaji - *true story*).

                                    Reply
                                    • ching ling yong

                                      I’m Malaysian, but working overseas. Can I apply the local credit card? If yes, what supporting documents that I need to provide? Do I have high chance of getting the credit card I applied?

                                      Reply
                                      • RinggitPlus

                                        Hi Ching Ling Yong,

                                        Different countries might have different rules about how they screen credit card applicants from foreign countries.
                                        You need to prepare all the regular documents that you would expect to, but they might also ask for a working permit, visa with at least a year remaining before expiration, or an employment contract.
                                        What you need to be aware of is that the banks just want to be sure that you can reliably service your debt.

                                        To improve your chances of being approved for a credit card, you can start by opening a bank account first to build a relationship with the bank, start with a beginner credit card with no frills, or try getting a supplementary card from somebody who lives there.

                                        Thanks for your question!

                                        Reply
                                      • cth

                                        I get rejected by standard chartered bank today with no reason. Izit there is restricted to apply a new card from different bank within a short period? for your information, i just received my 1st credit card from HSBC on last month... thanks

                                        Reply
                                      • Maeson

                                        Without any installment background is hard to apply for credit card, like myself. No house No car installment record, but i'm very sure my yearly income is fulfill the requirement.

                                        Reply
                                        • michael

                                          i just get rejected today and no reason , my salary are RM 2000+ but only epf not rmb200+ , b
                                          why i failed , bank statement ? epf problem ? but i surely i have RM2000+ to bankin every month .

                                          Reply
                                          • DanS

                                            Hi, my application for the SC Platinum Visa was "unsuccessful". My annual is above 50k and I have a car loan under my credit. My credit report RAMCi was an 8/10. I tried reaching out to the bank but the SC agent but could not get a hold. Was I rejected because I recently join a new company (now is the 5th month)? How are they able to tell as my EPF had a consistent montly contribution going back years. Most importantly, as I am going abroad by December and would prefer having a credit card, how long should I wait to apply for another?

                                            Reply
                                            • J.Lee

                                              I got rejected twice from Citibank Malaysia for not having a home phone number. *True Story*

                                              Reply
                                              • m

                                                this is true. I agree

                                                Reply