Let’s be real—applying for a credit card can feel like unlocking a new level of adulting.
You start dreaming about cashback perks, travel rewards, or simply having a backup for emergencies.
But then… rejection hits.
You get that dreaded email or letter, and suddenly, you’re wondering why was my credit card application rejected?
If you’re going through this, you’re definitely not alone. I’ve been there too—confused, frustrated, and a little bit embarrassed.
But here’s the good news: understanding why credit card application rejected situations happen is the first step to fixing them and getting approved next time.
Let’s walk through the common reasons your application might’ve been denied—and what you can do about it.
1. You Applied for Too Many Credit Cards at Once
Applying for several credit cards (or loans) within a short period might seem like a smart way to increase your available credit or rack up welcome bonuses—but to banks and credit bureaus, it can signal a red flag.
Every time you apply for a new credit card, the issuer performs a hard inquiry on your credit report.
Too many hard inquiries in a short span of time can make it look like you’re desperate for credit, possibly because you’re facing financial difficulties or planning to go on a spending spree.
Lenders see this as risky behavior. It might suggest you’re overextending yourself financially, even if your intentions are harmless—like building your credit history or optimizing rewards.
As a result, your credit score could take a hit, and you might even get denied for future applications, which just makes things worse.
What to do: Space out your applications. Wait at least 3–6 months between each one.
And pro tip: don’t apply for a loan and a credit card in the same month—it sends red flags.
2. You’re Using Too Much of Your Credit Limit
Let’s say you already have a card, and you’re regularly maxing it out—even if you pay it off every month.
That high credit utilisation makes banks cautious.
To them, it looks like you’re dependent on credit to stay afloat.
What to do: Try to keep your spending below 30–40% of your credit limit. Over 50%? That could hurt your credit score too. If you have multiple cards, spread out your spending or reduce it while you wait to reapply.
3. You Have Too Many Financial Commitments
Just got a car loan or a mortgage?
I get it—big milestones. But banks see that as existing debt.
When they calculate your debt-to-income ratio (DSR), they want to see that you’re not overburdened.
If too much of your income is already going toward loan repayments, your credit card application might get rejected.
What to do: Aim for a DSR below 30%. Pay off some existing debts first before applying again.
4. You Don’t Meet the Minimum Salary Requirement
This one’s simple but often overlooked.
Most credit cards have a minimum income requirement.
If you’re just under the threshold—even by a bit—it could get you rejected.
What to do: Make sure your income fits the criteria. In Malaysia, for example, the lowest requirement is around RM2,000/month. If you’re earning less, look for entry-level cards, student cards, or those meant for fresh grads.
5. Your Credit Score Is Low or Your Credit Report Has Issues
Your credit score is like a report card for how you handle money.
If you’ve missed payments, defaulted on loans, or even just applied for too many cards too fast, it can take a hit.
And if your credit report has errors (yes, it happens!), that can lead to an unfair rejection.
What to do: In Malaysia, you can check your credit score with CTOS or get your CCRIS report. Dispute any errors and work on improving your score by making timely payments and reducing debt.
6. You Applied for Several Cards Recently
This ties back to point #1.
Even if you didn’t apply all at once, applying for cards frequently within a few months can still hurt your chances.
Your score takes a slight dip with each application.
What to do: Let your credit history breathe. Wait at least a few months before trying again.
7. You’re Too Young
Yes, there’s a minimum age requirement.
If you’re under 18 (or even 21 for some banks), you might not qualify on your own.
What to do: No hacks here—just wait until you’re old enough. In the meantime, you could consider a supplementary card under your parents’ account if they’re okay with it.
8. You Submitted Incomplete or Messy Documents
This one’s surprisingly common.
Blurry payslips, missing IDs, or half-filled forms can get your application tossed out.
What to do: Triple-check your documents. Make sure your scans are clear and your info is consistent with your payslips, EPF statements, or whatever the bank asks for.
9. Your Income Is Unstable
If you’re freelancing, just switched jobs, or have gaps in your employment history, banks might be wary.
They prefer applicants with stable income that they can count on.
What to do: If you just started a new job, wait around 6 months before applying. This helps establish income consistency.
So, What Should You Do If Your Credit Card Application Was Rejected?
Let’s recap with a simple action plan:
1. Find out why. Call the bank or check the rejection letter. You might need to ask for specifics.
2. Fix the issue. Whether it’s missing documents or high credit usage, take steps to improve.
3. Clean up your credit report. Pay on time, reduce debts, and check your credit score regularly.
4. Lower your DSR. Try to reduce loan repayments before applying again.
5. Choose the right card. Apply for cards that match your income and credit profile.
6. Wait it out. Don’t rush to reapply. Give your score time to recover—patience pays off.
Final Thoughts
Getting a credit card application rejected stings, but it’s not the end of your financial journey. In fact, it’s a great opportunity to pause, reflect, and level up your money game.
From managing debt better to picking the right card, each step you take gets you closer to approval. So don’t feel discouraged—take this as part of the process.
Next time someone asks why was your credit card application rejected, you’ll not only know the answer—you’ll know exactly what to do about it.
Want more personal finance tips like this? Stick around, and let’s master adulting together.
Let me know in the comments—have you ever had a credit card rejection? What did you learn from it?
