Credit Card Application Denied? Seven Steps To Your Rescue

Rejection can put a pause in your sprint. But, what’s life without the challenges that we are tuned to tackle and grow from the experience? Here are 7 ways to approach and conquer that Rejection Notice that turned you down for a Credit Card:

  1. Analyzing Reasons For Denial

Your first and foremost task is to zero in on the reason why your credit card application was denied in the first place. For this, you will receive information from the company you applied to, directly through either mail or a phone call. If you don’t, it can be easily accessed on the company’s website in absence of which you can request for the information as you’re obligated to receive it. Here are some common reasons for the denial:

  1. Is There A Mistake On Your Application?

There may be an error in your application that could have resulted in the denial. Call your company or bank to fix this. As most companies do not check in with you for any potential mistakes in your application, you may not be aware of some obvious errors which can be corrected in a jiffy.

  1. Frequent Borrowings

The more you apply for loans, borrow credit, the greater the number of hard inquiries displayed on your credit report which may lead to the dismissal. You can avoid this by curbing your credit applications.

  1. Unstable Employment Situation 

Trying out new jobs too often is seemingly not the best way to get in the good books of credit card companies. This works against you when you’re trying to secure a credit card. Before you are to apply for a credit card you must try and show firmness in staying put in your job.

  1. Being Underage

Applicant’s age being under 18 could make one liable for rejection. You could use a relative’s credit card in such a case.

  1. If Your Financial History Is Not In The Greatest Shape

Companies require you to meet certain standards of credit score that reflects on your ability to meet your future payments. One of the quickest solutions to this is to apply for a card with a co-signer with good credit. A co-signer is someone with a good credit history who guarantees payment in case of your default.

  1. Errors In Your Credit Report

To get a deeper look into the reason for the denial, you may have to apply to see your Credit Report which may be done within 60 days of the rejection. In case of any errors in your Credit Report or failure to update the same, you can apply for corrections.

  1. Rebuilding Your Credit

Mounting debts, delinquency relating to payment, piling bills could be some of the reasons for rejection of your application. Pay all your bills on time or better yet, early, maintain timely payments on all your loans and you’ll be in the process of perfecting your credit record!

  1. Awaken the Lawyer in you

If you are confident about your credit scores and feel that your case should be reconsidered, you can always call up the Credit Company and speak to them directly, making a case for why you can be a perfectly sincere borrower.

  1. Research On The Right Institute

There are different companies with different standards of requirements for issuing credit cards. Your decision to choose a particular company or bank must be backed by an in-depth research into the institutes whose requirements match your credit score and report. This will greatly benefit you in the long run as well. Moreover, instead of applying to multiple companies for a loan which may increase your hard inquiries, you may consider applying to companies online. These are considered soft inquiries and do not malign your credit score

  1. Considering Alternatives

After trying everything out, in case you feel your credit is not up to the mark you can apply for a secured credit card which you get once you tender the required security deposit or even for a Retail Credit Card whose standards of approval are slightly lower than that of most credit cards. You may start with lower credit in your name in this manner but eventually, increase it by strengthening your payment history.

For a guaranteed approval, read your credit score and credit report and get them in perfect order. Paying debts early will show you’re committed to making improvements in your credit history. Most credit errors can be directly explained to the company, like for example if you defaulted on a few payments a few years, you can talk to the customer care representative of the company explaining to her how that was a default on your part.