Did you recently apply for a credit card? Was your application rejected? Credit card applications can get rejected for many different reasons, so do not be disappointed if it happened to you. With some expert help, you can get your credit card application approved in no time. In this post, we will tell you how!
Having your credit card application rejected is no fun. We get it. But just because one credit card application was denied does not not imply that you will never be able to get a new credit card. What matters is how you act after you application is rejected. What you do will make the difference and ensure that you do not hurt your overall credit any further.
If you are in this situation, know that you are not alone. Before we tell you what you should do after your credit card application is rejected, it is important that you are aware of the common reasons for its rejection in the first place. Here are some:
- Application Form Not Filled Properly: It is one of the most common reasons for the rejection of the credit card application. Incorrect information about your income status could lead to this problem.
- Limited Credit History: It can turn out frustrating when you have a decent credit score but a limited credit history. This implies that you are required to maintain a decent score for a lengthy period to get your application approved.
- High Credit Card Balances: It is recommended that you should apply for the credit cards when the balance is paid off completely or quite low. It would reveal to the banks and creditors that you are reliable and capable of paying off the balances.
- Too Many Inquiries in the Credit Report: In case you have recently applied for a few number of multiple credit cards, then you might have been denied the application. This is because of the increased number of inquiries that you are allowed to have in the given period. In the end, the decision depends on the creditor.
So What Should You Do After Your Credit Card Application is Rejected?
If your credit card application has recently been denied, we encourage you to take these steps:
- Wait Before You Re-apply: The period for which you should wait for reapplication of the credit card would depend on specific factors. For instance, it would vary from the individual’s condition to another. As such, there is no specific rule to follow when it comes to reapplying for your credit card application. It is usually recommended for you to wait for around 6 months between successive credit card applications.
- Carefully Read the Adverse Action Letter: For responding to your application, the credit card agency will take around 30 days. However, you can also hear from within a few weeks. In most cases, you would receive a proper letter from the issuer of the credit card. The letter would state the specific reasons for the denial of the credit card application. It could be related to factors like current late payments, credit report, higher credit balances, and so more. In the given case, you can get a free copy of the respective credit report towards ensuring that the information is inaccurate.
- Request the Free Credit Report: In case the credit card is denied due to false information on the credit report, you can request the credit report within 60 days of the application. In case you wish to view the respective credit reports from some other bureau, then you might have to order them separately.
- Dispute the Errors: Once the credit report has been ordered, you can dispute the errors that might have led to the denial of the credit card application. Upon updating the credit card information, you can ask the issuer of the credit card to review the credit card application all over again.
- Repair the Credit: There are chances that your application might have been denied due to poor credit. In such a case, you should aim at improving the same by resolving errors, payment of the higher balances, and minimizing the new card applications undertaken by you.
Make the most of the credit cards by applying for the same in the right manner.
- 7 Things You Can Do If “Your Credit Card Application is Denied,” The Balance, Latoya Irby, 30 January, 2020,
- “Credit Card Application Denied? Here’s What to do Next,” Nation,
- “5 tips for reapplying after credit card application is denied,” Credit Karma, Neil Acharya, 17 April, 2019,
- “12 Possible Reasons Your Credit Card Application Was Denied,” The Balance, Latoya Irby, 20 Novermber, 2019,