If you are denied credit, you can take a few steps to address the issue:
- Improve your credit and reapply
- Call the card issuer’s reconsideration line
- Try for a different credit card
To opt out of credit card offers, call 1 888 5OPTOUT or go to www.optoutprescreen.com.
Credit card issuers send an adverse action letter within 7-10 days stating why your application was denied, like issues on your credit report. You can get a free copy of your report to make sure it’s accurate. There’s no limit to disputing inaccurate credit items. It may take several tries to resolve issues.
The number of credit cards may influence denials, which varies by issuer. Computers don’t always get approvals right. You can call a representative to reconsider with more details on your finances or extenuating circumstances.
Call the reconsideration line to reevaluate, but also have a strategy ready on why you deserve the card, like a history of on-time payments and low utilization.
Lending standards tighten in uncertain times, and you may see closed accounts, lower limits, higher APRs, or more denials. Online loans provide alternatives when you need funds.
Multiple applications in a short time frame seem desperate and lower approval chances – wait before reapplying.
Especially after bankruptcy, issuers will likely deny you. Start rebuilding credit slowly with a low-limit starter card.
How long you should wait to reapply for a credit card after an application is denied varies with each person’s situation. The typical recommendation is that you should wait six months between credit card applications.
The reason for your denial could depend on many factors. Most credit card companies and credit advisers recommend a six-month period before reapplying.
The best way to determine when to reapply is to consider why you were denied in the first place. If you were denied for having too much debt, a poor credit history, or not enough income, it’s best to wait at least six months before reapplying.
When you reapply, make sure that the credit card’s target credit rating is within your credit limit. Instead of reapplying for the same card, you may consider applying for a credit card in a lower tier.
Finding out why you were denied is key. It could lead to approval next time — for the same card or a different one.