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The top 9 reasons credit cards are declined

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Your credit report has taken a hit
Your credit report has taken a hit © OtnaYdur/

Your credit report has taken a hit

Good standing with one credit card is not enough. Behind the scenes, issuers check in on your credit to see how you are performing in other parts of your credit life, says Ulzheimer.

"They're looking at your credit report to see if there's anything on the report that they feel makes you an unacceptable credit risk," he says. So even if you're current on one card's payments, your standing with that card could suffer if a new collection hits your credit report or you default on another credit card.

FREE TOOL: Check your credit report now at myBankrate.

While the Credit Card Act of 2009 placed some limits on how credit card companies can react to changes in your credit report, they can still pull your information from credit agencies as often as they like, and based on what they see, they can "determine if they still want to do business with you under those same terms" you signed up with, says Ulzheimer.

If you're a risky customer and your card issuer wants to make changes to your terms, such as your interest rate, it must provide a 45-day notice.

"If your credit history has declined, then your (credit) limit may be reduced," says Feddis.


Editorial Disclaimer: The editorial content is not provided or commissioned by the credit card issuers. Opinions expressed here are author’s alone, not those of the credit card issuers, and have not been reviewed, approved or otherwise endorsed by the credit card issuers.

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