4 Major Reasons Why Your Credit Card Application Was Declined

Guest Contributor

Guest Contributor

Last updated 23 March, 2022

Was your recent credit card application declined? Here are four possible reasons why the bank may have declined your application.

Back in the old days, when credit cards were first introduced, it was rather difficult to obtain one. 

Keeping a credit card in the wallet gave owners the feeling of high social status. Today, 73% of Singaporeans keep at least one credit card in their pocket. In fact, around 10% of Singaporeans own more than six credit cards. 

Why do people prefer to use credit cards?

There is no secret to reveal or rocket science to understand the benefits of credit cards. Undoubtedly, its rewards, cashback offers, fuel savings, insurance benefits, travel, and other benefits are alluring. 

People are also more inclined to shop online, and 68% of online purchasers only pay through credit cards. 

Naturally, you want to own one, considering its popularity and benefits. Your interest in reading this article signifies either you applied for a credit card and got rejected, or you are going to apply for a new credit card and want to avoid mistakes that may cause your card application to be rejected. 

Even when banks are dying to offer people their credit card services, sometimes your credit card application can receive rejection without any reason.

So, what should you do in that scenario? Either of these two things of course:

  • If you are applying for a new card, avoid making these mistakes we are going to tell you below.
  • If your card application is rejected, rectify those mistakes and reapply. 

So, here are some common mistakes and reasons that stop financial institutions from issuing you a credit card.

1. Applying for several credit cards at once

This is one of the common mistakes new applicants make. Often people send several credit card applications simultaneously to different financial institutions when they apply for cards.

Different cards offer different benefits, and you’d naturally want to use these advantages fully. One card could give you huge savings for shopping, and the other offers exciting miles accumulation. Who won't get all of these cards? 

Therefore, it is not wrong to want and apply for all the cards at once. However, it harms your application.

When you send credit card applications to banks, they will contact the credit bureau to obtain your credit score. This is to ensure you have maintained good financial records and don't have a big debt to pay.

If you have made several applications for credit cards within a short period, the banks may perceive that you are overextending yourself, thus denying your applications.

What should you do?

The good news is that your credit score should return to a good position eventually. So be patient and wait for a couple of months before reapplying for a credit card. And never apply for a loan and a credit card together in the same month. 

2. Using your full credit limit

Banks might issue you a high credit limit, but it's not wise to fully utilise it. 

You pay the debt on time and never default any payment; thus, your payment history shows your legitimacy. But if you always make use of your entire credit limit, the bank will hesitate to give you another credit card.

Think of it like this, your friend comes and asks you to lend him some money. And you come to know that he is already in debt because he spends beyond his means, and he also has debts to settle with three other friends as well. 

Would you lend him money now? Nope. Right? 

So, the best idea is to keep your credit card expenditure under 40%. 

If you already have multiple credit cards, then balance your expenditures. Don't just keep using one credit card and reach its limit while the other cards are lying idle in your pocket. 

It's a good thing that you pay your debt on time. But your credit score receives a hit every time you cross 50% of your credit limit. 

What is the best thing to do?

Try not to exceed 30% of your credit limit. And always pay your debt on time. Use your other credit cards if you are in need. 

Wait for a few months to improve your credit score, and then apply for another card. 

3. Not meeting the minimum salary requirement

This is the first and the most important requirement for issuing a credit card. 

No bank will issue you a credit card if you fail to fulfil the minimum salary requirement. Generally, in Singapore, the minimum annual salary needed to get a credit card is S$30,000. 

Even if your salary is slightly below the S$30K mark, your application will likely get rejected. So, make sure you can prove to the banks that you earn enough and are eligible to receive a credit card. 

There are credit cards for low-income earners, however, do note that the rewards and benefits from these cards aren't exactly great.

4. Not eligible because of young age

Banks not only verify your income but will also check your age. 

If you're too young, chances are the bank will deny your request. After all, it's a legal matter. 

Is there anything you can do in this case?

Unfortunately, no. The only thing you can do here is to wait. 

Maintain a good credit score by controlling your expenses. Use your card wisely. Then if you apply for a new credit card, you will likely receive one.


To ensure a successful credit card application, be sure to practice moderation and restraint. As long as you have been a good debtor, fulfil the minimum age and salary requirements, there should be no reason why your credit card application will be rejected.

If you are still scratching your head over which credit card you should apply for, why not check out our Credit Card comparison tool to help you find the best card to suit your needs and lifestyle. As an added bonus, we have an array of attractive offers for each successful signup!

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Credit Card Fraud: How to Better Protect Yourself?
Credit Card Chargeback: Reversing Unauthorised Transactions in Singapore


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