Understanding Student Credit Card Denials and Next Steps (2024)

FAQs

Why am I getting denied for student credit cards? ›

For example, card issuers might reject your application if your debt-to-income ratio suggests you may have too many obligations compared to your ability to repay. You may also be denied if your credit score is too low, which could occur if your credit score drops due to missing one or more student loan payments.

If you're denied for a credit card, you can take steps to address the more common reasons issuers consider you a risky applicant. For example, if your score is too low, you can reapply for a card that accepts lower credit scores you're more likely to be approved for.

Approval odds for the Capital One SavorOne Student Card will be influenced by your annual income and existing debts, and you need to be 18+ years old. You'll also need to have a U.S. mailing address and an SSN or ITIN.

The reasons they give for rejecting your application must be specific, such as, “Your income is too low,” “You have not been working long enough,” or “You didn't receive enough points on our credit scoring system.” General statements like, “You didn't meet our standards,” are not enough.

You might have too much debt for the amount of income you bring in. It's how lenders measure the ability to repay money borrowed. Whether you have too much debt or not enough income, consider if you can handle getting a job while in school.

Key Takeaways

Student credit cards are designed for college students and are generally easier to get than other kinds of credit cards. The issuer may ask for proof of enrollment and of your income. Depending on your age and income, you may need a co-signer to qualify.

Ask for a reconsideration

Credit card companies can miss information or end up with incorrect information due to computer or human error. For that reason, these companies have a reconsideration process, where applicants can ask the company to reconsider the rejected application.

The reconsideration process includes a manual review of your credit report by an analyst with the bank or card issuer. This is your opportunity to answer some questions and see if you can turn that denial into an approval. Sometimes it's as simple as reallocating credit lines or submitting identity verification.

In most cases, the lender must give you an adverse action notice, which explains why your application was denied or how to receive a statement of the specific reason(s) as to why your application was denied.

You may also have to show that you're enrolled in a college or university. For example, you could be eligible for a Capital One student card if you're enrolled—or admitted and planning to enroll in the next three months—at an accredited university, community college or other higher education institution.

What credit score do you need for a student card? ›

Student credit cards are designed specifically for college students and don't usually require a credit score to qualify.

Your monthly income needs to be at least $425 more than your monthly rent or mortgage payment to get the Capital One Quicksilver Student Cash Rewards Credit Card, according to Capital One. The higher your income is above the minimum, the more likely you are to be approved.

You may also have a history of high credit utilization. If you consistently max out your credit cards, for example, issuers may be hesitant to offer you new credit even if you always make your payments on time. Or maybe you've applied for too much new credit within a short time period.

To fix a bank-declined payment, confirm that you have sufficient funds and verify that your card information is current. If the problem persists, contact your bank directly to understand the reason for the decline and take the necessary steps to resolve it.

Key Takeaways. Student credit cards can be easier to get than other cards, but approval isn't guaranteed. Card issuers review the information on your application and check your credit history and income. You can be denied for a wide range of reasons, including poor credit or a lack of income.

Moreover, your payment history on student loans significantly affects your credit score. Timely payments can positively impact your credit score, while missed or late payments can cause a significant dip, affecting your credit card eligibility.

There is no minimum credit score requirement for federal student loans. Private lenders, on the other hand, typically stipulate a minimum credit score but the threshold will vary depending on the lender. In many cases, the minimum is in the mid- to upper-600 range.