Author: Holly Johnson / Source: Wise Bread
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Please visit our Advertiser Disclosure to view our partners, and for additional details.When you pay your bills on time, don’t max out your credit cards, and focus on building different types of credit, you’re normally rewarded with a good credit score. It may take a while to get there, sure, but the recipe for good credit is mostly the same for everyone.
Your credit score may also matter more than you think, mostly due to the array of benefits that await those with good credit. Not only can very good or excellent credit (scores typically 740 or higher) help you get the best rates on a car loan or home loan, but this status may even help you score lower insurance rates.
Now, here’s the bad news. Great credit doesn’t guarantee you’ll qualify for any loan or credit card you want. This is true even if your credit score is 850, which is the highest score anyone can achieve within the FICO base scoring method.
According to FCRA certified credit expert John Ulzheimer, this can catch people by surprise because they assume perfect credit is the ticket to all the credit they want. Not so fast. There are actually several reasons you can be denied a credit card or another type of loan even if your credit score is sky high.
1. You don’t have an income
As Ulzheimer notes, the Card Act of 2009 requires card issuers to verify an applicant’s income and ability to repay. For that reason, someone without money coming in may struggle to qualify for a credit card or any other type of loan.
This reason for denial is understandable since card issuers want to know they’ll be paid back for any money you charge, but it may be a tough pill to swallow for people with great credit and other positive factors.
However, there’s one way to sidestep this requirement if you don’t earn an income but someone in your household does, says Ulzheimer. Most credit card applications ask for your “household income,” even though many people may be inclined to…
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