11 Things That Make It Hard to Get a Credit Card
If you want to get a credit card. You have to go through an entire approval process. Credit card eligibility in the UAE involves the issuer reviewing your application, along with studying your credit history to assess if you qualify for the credit card. Some providers also let you check online if you are pre-qualified for the card, this helps in detailing the credit cards that you are most likely to be qualified for along with saving you the time and hassle of filling a wasted credit card application.
The specific eligibility criteria can differ from one credit card provider to another. Even for different types of credit cards from the same provider, certain things make it harder to get a credit card, no matter which credit card you are applying for. Below mentioned are 11 things that can affect your credit card eligibility in the UAE:
You Are Under the Age of 21 Years
If you are applying for any type of credit card, it is important to be well aware of the minimum age requirement. You must be of age above 21 years to be eligible to apply for a credit card. If you are a young adult, it is important to have a stable and reliable source of income to meet the credit card eligibility in the UAE.
You Have a Short Credit History
If your credit card got approved for the first time, it does not mean that it will immediately get easier for you to get a credit card. It requires you to build numerous months of a strong credit history which means timely payment and management of your credit card balance.
You Have Never Taken Up Credit
For someone who is looking to issue a credit card for the first time, often face a dilemma. To get a credit card approved, you need to have a history of credit, but you are unable to get credit because you cannot get approval. The first credit card is often very difficult to get because you need to find a provider that is suitable for someone with no credit history.
You Have Recent Late Payments
You can have a hard time to get approval for a credit card if you are later than 30 days on your credit card payment. Late payments indicate signs of you being a risky borrower.
You Have Filed Bankruptcy Recently
There are very few credit card providers that are willing to take the risk of providing a credit card to an applicant who is fresh out of bankruptcy. It is best to wait for a minimum for a year before you apply for a credit card as some of the providers won’t issue you a card until your bankruptcy has completely fallen off your credit report.
You Have High Balances on Loans and Cards
High monthly payments are indicators of high balances, which impose a risk of defaulting on new card balances. It is difficult to obtain a credit card if you are carrying a lot of debt.
You Have Many Past Offenses
Once you are due on your monthly card payments, your credit card is delinquent. Even one missed payment makes it hard to get a credit card, and multiple missed payments and offenses make it even harder. Collection, charge-offs, foreclosure, repossession and lawsuit judgments all impact your credit history and reduce the chances of a credit card provider approving you for a credit card.
There is a Fraud Alert on Your Credit Report
A fraud alert acts as a safety precaution in saving you from identity theft. It requires credit card providers to take extra efforts and steps to confirm your identity before accepting any applications.
You Have Low or No Income
It is required by law to have income that is enough to pay off your credit card balance. If you have a low income or no income you will have a very hard time getting any acceptance for your credit card application.
You Recently Issued a New Credit Card
Even just one recent credit card account can make it difficult to get approval for a new credit card. Credit card eligibility in the UAE is affected because providers want to be sure that you can handle new obligations properly before applying for another one.
You Applied For Multiple Credit Cards
If you have applied for too many credit cards, it may indicate that you are in financial trouble and require funds to get you out of it. It imposes the risk of defaulting as it indicates you taking more credit than you can handle.
The Bottom Line
It is best to be sure of all the requirements before applying for a credit card. Types of credit cards and credit card eligibility in the UAE varies across the different kinds of providers.