What to do When You’re Denied for a Credit Card? The Role of Reconsideration
Nothing seems worse than discovering that you’ve been denied for the credit card you applied to.
Credit companies have several reasons for denying someone, especially if the application was done online.
But what many people don’t realize is that you can and do have options to have that decision reversed through reconsideration.
What is Reconsideration?
While technology is a fantastic medium and tool for a lot of things, unfortunately it’s also been used to exploit and create fraudulent activities.
Because of this, while you can apply online, application rejections are a lot more common due to this. However, a credit card denial does not mean you can’t try again.
This is the point of reconsideration, the ability to explain your case to a representative in the case you get denied unfairly.
Obviously before you start applying for various cards, ensure that you’re meeting the requirements for that card.
The reconsideration process is quite simple:
Call the Credit Card Reconsideration phone from the issuing bank or company.
When you reach a representative, explain to them why you would like that specific card and how valuable the card benefits will be for you and/or your business. Sometimes they can approve you for the card.
If the first representative isn’t able to get you approved, politely end the call and call back. You can call up to 10 times, just be sure to act as though this is the first time you’re calling.
It should go without saying that you want to be incredibly nice and professional to the representative you’re speaking to.
What are the Reasons for Application Denials?
There are several reasons that credit card issuers deny someone’s application.
For example, if you’ve just started building up credit or you’re repairing your credit, you may want to mention to the rep that there’s a mistake on your credit report that you’re in the process of having resolved.
Another reason for a denial is your income.
If you’ve recently changed positions or jobs, this may not be reflected on your credit report on the update to your income.
This is especially true if your income has increased significantly, like a recent raise. For this example, be sure that you’ve updated your income to reflect the higher pay wage.
You also don’t want to apply too many times in a short period of time; depending on the card and the bank, this can be the difference between a hard pull and a soft pull.
Hard pulls affect your credit score, so the more hard pulls on your credit report that an issuer sees, the more of a red flag that sends and might be a factor in a denial.
This is true of Chase, which has a specific requirement that will automatically deny you if you apply for another card, after doing an application for the first card.
Getting denied for a credit card happens, but as outlined above, you can reverse denials by using reconsideration. This is also the reason you should be strategic when applying, as too many applications - especially at the same bank - can be seen as a warning sign.
Guys, if you need more help when it comes to reapplying for a credit card or how to go about the reconsideration process, be sure to join our Credit Stacking community.