5 Things to Do if Your Credit Card Application is Denied

Having your credit card application denied is no fun. But this does not mean it is the end of the line. You can still take steps to get approved, and more important, make sure your credit remains in shape. Below are some of the best things that you can do immediately.

  1. Gain information from your adverse action letter.

The credit card issuer is bound by law to send you a letter within 10 business days explaining the reasons behind your application denial. There are many possible causes, such as recent late payments, high credit card balances, or other inconsistencies with your credit report. In this case, you are entitled to receive a free copy of your credit report to check for information accuracy. Read these documents thoroughly and see if there are ways for you to address the specific reason for denial.

  1. Reapply carefully.

Once you understand why you were denied and have reasonably solved it, apply again. But be patient about it. The more credit card applications you put in, the more likely it is to get interpreted as desperation for credit. You just might be turned down again. So wait a few months before sending in that next application.

  1. Get your free credit report.

If your application has been denied due to information from your credit report, you have 60 days to request a free copy of this report used in making the decision. Any errors can be disputed and once your report has been updated with the most recent information, you can ask the credit card issuer to review your application again.

  1. Rebuild your credit.

Bad credit is the fastest way to get denied. Before you consider applying for a new credit card, take the time to fix your credit. Answer to unpaid collections, recent delinquencies, and high credit card balances. Once these have been cleared off, it will be easier for you to get approved.

  1. Get a secured credit card.

In case you have bad credit, apply for a secured card. You will need to make an upfront security deposit to be made against the card’s credit limit though. This deposit is placed in a savings account and will only be used when you default on your credit card payment. After six to 12 months of timely payments, your issuer will convert your secured card into an unsecured one and the deposit will be returned to you.

Try these five tips in case your application has been denied recently. Don’t give up yet! There is still a fair chance that you will be accepted soon.