Bank Notes

1. You already owe money

If you already have outstanding loans, lines of credit or credit cards, it can be harder to get new ones.

2. You’ve been shopping around for credit

If you have been applying for credit in different places recently like getting a car loan, a store credit card, another line of credit, etc., it is known as 'credit seeking behaviour.' This can be a potential concern for a lender as they’ll be wondering why you have been focused on getting access to new credit. Lenders may see it as a sign you’re have money problems or that you are maybe about to take on too much debt.

3. You don’t meet the requirements of the credit card you are applying for

Some cards have requirements like a certain minimum income level. You could have a great credit score but if your income level is below the requirements, you likely won’t get the card. Make sure to read through the requirements of the card before you apply.

4. You have an unstable employment history

If you are new to the work force, have a history of frequently changing jobs or are recently self-employed, your odds of getting approved could be lower.

Why should you find out your credit score?

5. You don’t have a lot of experience borrowing money

If you haven’t used credit much before, like if you are new to the country or young, it can be harder to qualify for credit. It can be challenging since you need to have credit in order to show you can handle it properly. Lenders might be more likely to approve you for a credit card with a lower limit (this will also help you build a solid credit score).

Having a good credit score can usually help if you are applying for credit. If you aren’t happy with your credit score, here are a couple ways you can try to improve it.

1. Create a monthly budget: list out your monthly expenses and income to see where your biggest expenses are coming from. For your credit cards, make sure you make at least your minimum payment each month on time.

2. Be punctual: set reminders to help you make sure you pay your bills on time. Consistently late payments can have a negative impact on your score.