Sometimes you’re denied credit and it’s not because your credit score is poor. What many people don’t understand is that having your score in the proper range doesn’t necessarily mean you will get that credit account. Through the approval process, you still have to deal with what proprietary guidelines a lender has. One example of this is from a conversation I recently had with a friend. He had an authorized account on his report that was his mother’s. It had a $12,000 limit and a very low balance. While applying for a car, the lender told him that because of this card he couldn’t be approved for the loan that he wanted. This was because the lender feared that the card could be run up to the $12,000 limit and he wouldn’t be able to pay his car loan. This wasn’t because his score was bad, it was because of the lender’s fear of not being able to pay a high balance back.
Another reason you might be denied credit is that your credit history hasn’t been around long enough. You might have a good score, but since the accounts are so young lenders might not think you will be able to pay back a loan or higher credit limit. These are just a couple reasons you will be denied credit because your credit score is poor.