Can credit be declined in spite of a good score?

Yes. You can experience credit denial in spite of having a good score.
1. There are different credit scores and you might be checking only one
2. Your income might fall short of the cutoff by even $1
3. A creditor may not approve even if you have 1 negative item
4. A creditor may feel you are already overloaded with debt

Hi Kelly,

Yes, I totally agree with davensmith8, there might be several unconventional reasons for your credit denial.
I believe there are few more reasons also for which your credit gets declined.

1. You might have applied for the same credit card recently. Many credit card providers allow 30 to 90 days waiting period before letting you apply again.

2. The application you have made might contain some missing information about your financial status. Skipping few boxes in the application form may be the reason.

3. I don't know your age but, may be you are too young to apply for a credit. You cannot apply as the sole account-holder of a card if you are under the age of 18. It is because the credit card company cannot take legal action against you if you don't pay off a bill, as you are a minor.

4. Your employment history might be another reason. If your employment record shows that you have a tendency to shift jobs frequently, your earning strength might be considered unstable. So, lenders won't take the risk depending on your income.

Hope this will help.

Having a good credit score doesn’t mean you’ll get approval for a loan easily. There are other factors that are taken into consideration such as -

• You have pyramiding debt. That means, you’re paying off existing debt with new credit repeatedly. This shows that you don’t have enough funds to handle debt.


• You’ve crossed 50% or more of your debt utilization ratio.


• Your lenders have a high standard of giving out loans.


• You have more than one or two hard inquires within a short span of few months. This indicates that you’re credit hungry.


• You’ve never used a credit card before. Your lenders might fear this because they’re not sure about how you will handle the borrowed money.


• Your loan approval might get rejected due to industry-specific problems, local ordinances or climate conditions.

Only your lender can explain the reasons behind the rejection. You should have received a notice in which the factors will be explained clearly. Good credit score is important to get the loan approval. But other factors such as insufficient income, high balances on credit cards, too many credit cards and huge debts are also crucial factors that can influence the matter.