BANGALORE: Applying for a credit card is one of the fastest and easiest ways to build your credit score and if you are low on cash, a credit card can help you through a financial jam. However, your enthusiasm over getting approved for a new card could come to a screeching halt if you receive a rejection letter.

A credit card denial can come as a complete surprise, especially if you feel that you’re a good candidate for a new account. The reason is simple, while reviewing applications, credit card companies take many factors into consideration, only approving applicants with a low default risk.

Let’s have a quick look at the factors responsible for your credit card application:

1. You Are Too Young To Own A Card

Regardless of whether you have a job or another income source, you cannot apply as the sole account-holder of a credit card if you are under the age of 18. Furthermore, if a credit card company were to approve your application as a minor, they cannot take legal action if you default on a bill. Despite this restriction, persons under the age of 18 can obtain a credit card – but it requires a parent to cosign and include his or her name on the account.

Alternatively, a minor can be listed as an authorized user of a parent’s account, which means all payment activity and account history will appear on the minor’s credit report. Lastly, minors can always obtain a prepaid credit card. Prepaid credit cards don’t build a credit history, but they can teach young people how to make a budget and use a card responsibly.