Got a Balance Transfer Credit Card Denial? Here Is What You Can Do
Once you understand you are carrying balances on one or several credit cards under huge interest that you cannot pay off quickly, it may be wise to consider transferring those debts to a new balance transfer credit card. Most such cards come with a 0% intro APR on balance transfers for 6-21 months, which can help save a significant part of your budget.
However, there is a possibility that your application will be rejected by the issuer for some reason. Nevertheless, it’s not a cause for getting frustrated and giving up. There is still something you can do.
Find Out Why Your Application Was Rejected
First of all, to determine further actions, you need to find out why your application for a balance transfer credit card was denied. In such cases, issuers should send a rejection email containing a clear reason for this decision. It will help you understand what to improve and what steps to take next.
Work on Your Credit
Typically, balance transfer cards are designed for applicants with good or excellent credit. Thus, if your score is lower, it may become the decisive factor and not let you qualify for the chosen card. In fact, low creditworthiness is the most common reason for issuers to say “no”. However, even high scores don’t provide you with 100% guaranteed approval.
After reading the issuer’s explanation containing the factors that prevented you from getting approved, think about what moves you can possibly do to get rid of those. Pay attention to the major factors that make up a credit score: payment history, credit utilization, length of credit history, new credit, and credit mix. If you try hard and see to those, you will be able to improve your credit score and, as a result, get higher chances of approval in the future.
Ask for Reconsideration
In case the stated by the issuer reason doesn’t make sense to you, you may also try to contact them to explain your situation and ask to reconsider your application. Doubtful as it may seem, but sometimes it helps indeed. Note that you need to be ready to provide some additional information and documents.
Consider Alternative Offers
Another option that you may consider is choosing an alternative credit product that will allow you to consolidate several debts or reduce the current interest rates. For example, these goals can be successfully achieved by means of personal loans.
Loans will be especially suitable for people with poor credit. They usually have less strict credit score requirements while offering lower rates than credit card APRs. Moreover, you can indicate the desired amount while filling out an application form.
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