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Understanding Student Credit Card Denials and Next Steps

6 min read

Last Updated: March 7, 2025

Table of contents

Key Takeaways

There are a wide range of reasons why credit card companies might deny an application for a student credit card.
If you’re rejected for a student credit card, it’s important to determine the cause so that you can take appropriate follow-up steps.
There are various strategies you can follow to improve your odds of credit approval, like using a secured card to build credit.

Common reasons for student credit card denial

If you’re declined for a student credit card, there's no need to worry or lose hope. The key is to find out why you received a rejection. Understanding the reason can guide you to make adjustments that could enhance your prospects for future approvals.

Student credit cards are made with students in mind, but credit card approval isn’t guaranteed. There are various factors that could lead to denial.

Having a high debt-to-income ratio
Not earning enough income to cover potential credit card bills
Not having a credit history
Having a poor credit score
Having a history of missed or late payments

The good news is that federal regulations require credit card companies to clarify why your application was denied. This means you'll have a clear understanding of the reasoning behind the decision.

Impact of student loans on credit card approvals

Can a credit issuer deny you credit because of student loans? The answer depends on several factors, such as how your loans impact your overall debt-to-income ratio, as well as your history of missed or delinquent student loan payments. For example, card issuers might reject your application if your debt-to-income ratio suggests you may have too many financial obligations. Similarly, if your credit score drops due to missing one or more student loan payments, your credit score may drop and be too low for their criteria.

Impact of credit score on application outcomes for students

Many student card issuers are willing to approve applicants without established credit. For example, there is no credit score required to apply for a Discover It^® Student Chrome credit card.¹ However, if your credit score is low because of missed or defaulted payments on past loans or credit cards, your application is more likely to be rejected.

The role of income verification in credit approvals for students

If you are under the age of 21 when you apply for a credit card, the credit card company may request and verify information about your income. If they think you might not be able to pay your credit card bills, they may deny your application.

You don't necessarily need a high salary or a full-time job to apply. However, as a student, you do need to show that you have access to a steady income, such as money from a parent that is regularly deposited into your bank account or a part-time job.

Steps to take after you get a student credit card rejection

There are things you can do to improve your financial health—and with it, your likelihood of getting new credit in the future. Two of the most important steps to follow are reviewing your rejection letter and checking your credit reports.

Step 1: Review the rejection letter

Under federal law, a credit card issuer must tell you the reason they turned you down in your rejection letter, also known as an adverse action letter. Be sure to read the letter carefully to learn why your application wasn’t approved. There may be corrective actions you can start taking right away, like reducing your debt-to-income ratio.

Step 2: Check credit reports

There may be an error in your credit report that caused or contributed to the denial of your application, such as missing or inaccurate information about a payment you made. You may also have been the victim of fraudulent activity, such as identity theft. To rule out these possibilities, it's wise to check your credit report for completeness and accuracy.

You're entitled to one free annual copy of your credit report from each major credit bureau. Their website will explain what to do if you locate an error on your report. Additionally, if you receive a denial for credit, your rejection letter will provide instructions on how to obtain a free copy of your credit report.

Preparing for future credit card applications

To increase the chance of approval for future credit cards or loans, it's important to have a good understanding of your financial situation. This is why reviewing your rejection letter (and your free credit report) is so beneficial.

Additionally, choosing the right credit card before applying is important, as some cards have more demanding requirements than others. If you can’t get a student credit card, think about ways to build your credit history. A great start is making sure you pay all your bills promptly or use a secured card in a responsible manner.

Did you know?

Borrowers with little to no credit history or poor credit may struggle to qualify for an unsecured credit card. You may not need a credit score to apply for a secured credit card. For example, there’s no credit score required to apply for a Discover it^{^®} Secured Card.²

Learn More

Building a strong credit history

Student credit cards are often available even to people with limited or no credit history. However, if you've already been turned down due to your lack of credit history, it may be a good idea to find ways to start building your credit.

Some ways you can build a strong credit history include obtaining a credit-builder loan, obtaining a secured credit card, becoming an authorized user, and reviewing your credit report for errors. For more tips on boosting your creditworthiness, learn about building a credit history with a secured credit card from Discover.

Timing and strategy for future applications

When you apply for a credit card, a hard credit inquiry is triggered that may temporarily lower your credit score. Therefore, it's wise to wait at least six months between applications. It's also a good idea to check if you're pre-approved for any credit cards. If you're pre-approved, it typically means the card issuer has already determined that you meet at least some of the eligibility criteria.

The bottom line

Finally, remember to consider a secured credit card, like the Discover It^® Secured Credit Card, as an alternative to student credit cards. Think of secured cards as training wheels for credit. They provide a safe space to practice responsible spending with a safety net (your deposit) while gradually building your creditworthiness.