Your credit score isn't the only factor lenders consider when processing an application, which means even people with an excellent score risk being denied.
They might look at not only the income figure but also how stable your income has been. Debt. One of the most common reasons people are rejected for a credit card — even people with good credit — is a high debt-to-income ratio.
If you have a 700 credit score, you're considered to have good credit. You may qualify for more competitive rates and options in terms of lending products. However, you may not get the best rates available, nor more premium products like luxury rewards credit cards.
In some cases, credit card issuers may choose to reject your application even if you have a good or excellent credit score. Getting denied for a credit card even though you have good credit might surprise you — but it happens more often than you think.
Large debt: You could be turned down if you have a high amount of existing debt even if you have an excellent credit score and no previous problems in repaying any of it.
Well, there are several credit score ranges. For instance, 780–850 may be considered "excellent" while 720–780 may be seen as "good." But when it comes to a range that may be seen as bad, a score between 300 (the lowest) and 660 fits into the “poor” category.
No, denied credit applications won't appear on your credit report. Lenders don't report whether your applications were approved or denied because even approved applications don't necessarily result in a new account.
Being denied for a credit card doesn't hurt your credit score. But the hard inquiry from submitting an application can cause your score to decrease.
So, given the fact that the average credit score for people in their 20s is 630 and a “good” credit score is typically around 700, it's safe to say a good credit score in your 20s is in the high 600s or low 700s.
A 700 credit score is a good credit score. The good-credit range includes scores of 700 to 749, while an excellent credit score is 750 to 850, and people with scores this high are in a good position to qualify for the best possible mortgages, auto loans and credit cards, among other things.
In most cases, it's one of the following: Your credit score is too low. You don't have enough income. You have too much debt relative to your income.
It is illegal to:
Refuse you credit if you qualify for it. Discourage you from applying for credit. Offer you credit on terms that are less favorable, like a higher interest rate, than terms offered to someone with similar qualifications.
Consider suing the creditor in federal district court. If you win, you can recover your actual damages. The court might award you punitive damages under certain circumstances. You also may recover reasonable lawyers' fees and court costs.
If you had a recent bankruptcy, you recently applied for a lot of new credit, or you have some unpaid collections or legal judgments, then you can be denied even if your credit score is technically good enough to get a loan.
If anyone knows why you've been denied a mortgage, it's going to be your lender. According to the Equal Credit Opportunity Act, lenders are required to tell you why you've been turned down, if credit played a role.
Reported rejection rates among applicants increased by 2.1 percentage points to 20.1% in 2023 from 18.0% in 2022, well above its 2019 level of 17.6%.
It's not just you: Getting a loan is significantly harder now than it used to be. Over the 12 months ending in June, 21.8% of people who applied for credit were rejected, according to data released this week by the Federal Reserve Bank of New York.
Here's how the FICO credit scoring system ranks credit scores: Poor: 300-579. Fair: 580-669. Good: 670-739.