If your credit card application is denied, you may be surprised to learn that there are ways to get the potential issuer to reconsider his decision. However, time is of the essence. You must get started right away as credit scores change regularly, and so do company policies. Credit card companies are tightening up their requirements for new applicants and credit is becoming harder to get. Therefore if you have been denied for a credit card application, get started right away trying to convince the issuer to reconsider his decision.
Review the Reasoning Behind the Decision
The first thing you need to know is why the application was denied and, by law, the credit card company must provide that reasoning. They should also provide you with information regarding obtaining a free credit report that is valid for 2 months following the decision. This is another reason that timeliness is important.
There are actually a multitude of reasons that you can be denied for a credit card application. You may have a high ratio of credit used to credit available. If you have made a number of applications for credit cards in the recent past, you may be denied for too many inquiries. You may not have sufficient credit history or you may have a poor credit score. The company may not be content with your employment history or how often you move.
One surprising reason that you may have been denied a credit card is that the company offering the card already has you as a client with a different type of card and may have policies against issuing multiple cards to the same person. Whatever the reason, you have the right to know it so you can investigate the situation, make sure it is just reasoning and appeal the decision.
If you are denied a credit card and feel it is unjust, you should check your credit report. There may be an error on it that is negatively impacting your credit score. You have the right and responsibility to correct any errors on your credit report. By making sure your credit score is correct and fixing any problems with it, you can go back to the creditor and request that he reconsider the decision regarding the credit card application.
Appeal the Decision
If you have been denied a credit card, you should immediately contact the company and speak with someone who has the power to approve applications. Many people whose applications are rejected were at the mercy of a computer. Most big companies use a computer based system for rejection or approval of credit card applications. Glitches can occur with the system, as with any computerized system. In addition, by speaking with an actual person you can explain any out of the ordinary circumstances and often your application will be approved.
If, after speaking with a representative by phone, you have still not been approved for a credit card, you should write the company a letter. Outline the situation and include any information that has been shared with you concerning the decision. State why your application should be reconsidered, including any information that a credit report might not have, such as information about your employment, impending salary raises, how responsible you are with money and why you are applying for this particular card.
When the Denial is Final
If you have exhausted your options and the denial of your credit card application is final, the best thing to do is to actively work on improving your credit score so that the next time you apply for a credit card, you will have a better chance of being approved.
Pay down any debts you have so that your used credit to available credit ratio improves. Do not close any accounts that are paid off as this will worsen your ratio. Do not miss or be late with any payments. Avoid inquiries on your credit report unnecessarily. Work on fixing any errors or omissions on your credit report that may help to improve your score.
Remember that appealing a credit card application denial is not something that will even appear on your credit report. In fact, the only impact it will have is to possibly reverse a decision that was wrong to begin with and the rejection of the card will no longer be on your report. So be brave and when you feel that you have been treated unfairly in your credit card application process, go ahead and say so. You may just be one of the many people who are the victim of an unfortunate mistake that can be easily rectified by the right person. To find out if you can apply for a card right now, use the Credit Card Chaser on our home page, free of charge.
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