If you’re new to taking out loans, applying for a credit card might seem like the natural first step to take. Maybe you’ve gotten excited about looking up the best credit card in the Philippines for starters or a no annual fee credit card Philippines’ bank customers trust. Perhaps you’ve already applied—and faced a frustrating rejection; but while a denied application might feel like a setback, it’s more common than you might think. Many first-time applicants are turned down due to a lack of credit history, insufficient income, or even small errors in the application. Credit card issuers have strict approval criteria to manage risk and often find it safer to turn down applicants who lack an established borrowing record.
However, being denied doesn’t mean you’re out of options. There are steps you can take to improve your chances of approval in the future, as well as other accessible borrowing options that don’t require a traditional credit card. Some alternatives are even designed expressly for first-time borrowers and thus easier to qualify for. At Maya, we’re more than ready to help out users just starting their borrowing journey with our arsenal of fast and flexible lending solutions.
In this article, we’ll walk you through practical steps you can take and alternative credit options you may want to consider.
Look into Alternative Sources of Credit
A credit card isn’t the only way to secure funds when you need them. In fact, depending on your financial situation, other borrowing options such as personal loans or virtual credit lines might be more accessible and flexible. If you’ve been denied a credit card, these options can help bridge the gap while you work on improving your credit standing.
One option is to explore digital credit lines that offer instant access to funds. Maya Easy Credit, for instance, allows you to borrow up to PHP 30,000 as long as you are a 21-65-year-old Filipino national and resident and have an upgraded Maya account. You can have the funds disbursed directly into your Maya Wallet or even use Maya Easy Credit as a direct payment method via QRPh, Maya Shop, or via online checkout. It’s a convenient, user-friendly credit solution you—and anyone—can take advantage of whenever you need it.
Explore Secured Credit Cards
As a new borrower, you might have better luck with a secured credit card than an unsecured one. This type of card is expressly designed for people with limited or no credit history, so it makes a great starting point for first-time borrowers.
A secured credit card requires you to provide a cash deposit upfront, which serves as collateral and typically determines your credit limit, reducing the risk for lenders and making approval for aspiring borrowers easier. Using a secured card responsibly—such as making on-time payments and keeping your balance low—can help you build a positive credit history over time, allowing many banks and financial institutions to even offer upgrades to clients who demonstrate good borrowing behavior.
Review Your Rejection Notice
Lenders are required to disclose their reasons for rejecting your application, and reviewing this information can give you valuable insight into what you need to improve. Common rejection reasons include:
- Low or unstable income – If your earnings don’t meet the bank’s minimum income requirement, it may be difficult to qualify for a credit card.
- High debt-to-income ratio – Lenders may consider you too risky if they see that you already have existing loans or financial obligations.
- Lack of credit history – Without a track record of borrowing, issuers have no way to tell whether they can trust you to repay your debts on time.
- Errors in your application – Even small mistakes, like a mismatched address or missing details, can lead to rejection.
Once you identify the specific issue with your last application, you can determine the steps you should take to address it and avoid another rejection when you decide to reapply. Also take note that for Maya Easy Credit, using Maya services regularly can help improve your chances of your application being approved in the future.
Go Over Your Credit Report
In addition to reviewing your rejection notice, it may also help to check your credit report. Even if you don’t have an extensive credit history, you might still have records that lenders use to assess your application. In some cases, errors or outdated information in your report could have contributed to the rejection.
Start by requesting a copy of your credit report from a local credit bureau like the Credit Information Corporation, TransUnion Philippines, or Experian Philippines. Study it for inaccuracies, such as incorrect balances, payments that were marked late by mistake, or accounts you don’t recognize. Dispute any errors you find as soon as possible to ensure your report accurately reflects your financial standing.
Wait a Few Months Before Reapplying
It might be tempting to submit another application right away, but applying for multiple credit cards in a short period can do more harm than good. Each application triggers a hard inquiry on your credit report, which can temporarily lower your credit score.
Instead, take a step back and work on addressing the factors that led to the rejection. Use the waiting period to build better financial habits, strengthen your credit profile, or explore other credit options that may be easier to qualify for.
When you’re ready to reapply, choose a card that aligns well with your current financial situation with some cards even having lower income requirements or being designed specifically for first-time borrowers. Check the eligibility criteria beforehand and you should soon find a card that you can apply for with more confidence.
A rejected credit card application isn’t the end of the road—it’s simply a chance to reassess your options and take steps toward improving your financial situation. Take steps today to leverage alternatives and strengthen your financial profile; it may just surprise you how much they boost your chances of approval in the future. We, at Maya, have your back with Maya Easy Credit and other flexible borrowing options you can take advantage of, so don’t hesitate to apply now.
