What to do when your credit card application is declined: Credit card reconsideration
Applying for a new line of credit is always a pretty nerve-wracking process, and what a great disappointment it can be when you are denied.
The final decision on whether your application is approved is made by a credit card issuer based on your personal details, like your credit score, income, and credit history. Even when your credit card application is rejected, don’t panic. You usually have a chance to appeal and potentially reverse the decision.
Credit card denials don’t always happen to people with bad credit or low income. As credit card issuers have tightened their approval requirements, this also affects people with a good or excellent credit history.
Credit card applications can be denied for a variety of reasons, including a low credit score, high credit utilization or lack of credit history, too much debt or recent inquiries, or even errors in the credit card application.
While some of these reasons are non-negotiable and will likely prevent you from being reconsidered, others may be less significant, and your application will be easily reviewed. For example, if you had too many credit cards in the recent past, but you can provide the issuer with an explanation, they may be willing to reconsider your application. Similarly, if you’ve already been extended too much credit with the issuer.
In case the card issuer doesn’t have enough information to approve your application, a call asking for more details about your application can also help turn a “no” into a “yes”.
Generally, most credit card application decisions are made automatically through a computer system using the financial and personal data you provide. And these computer technologies can make mistakes too. So, if you’re denied but still want to get a card, this is when you should call the reconsideration department.
Most banks have a dedicated credit card reconsideration line where you can call to talk to someone about your denial. Usually, credit card issuers give you about 30 days following your application to request a reconsideration. While calling the reconsideration department doesn’t guarantee approval, this phone call will allow you to discuss your application with a human representative. This can give you the chance to file a personal appeal and get a manual review of your application by a human.
You can call the reconsideration line any time after you get a decision, but it may be better to wait until you’ve received a denial letter with either a reason for your denial or more information. It typically arrives in the mail within 7–10 business days and no longer than 60 days following the denial.
It’s important to have this information before you call the reconsideration department, so you can gently explain to the agent why the concerns raised by the issuer are irrelevant, and you will be a responsible customer. In addition, review your credit report before calling the reconsideration line to make sure all the information is accurate and up to date.
When you’ve gathered all the information you might need, call the customer service or dedicated reconsideration line number listed in the letter. Start the call by introducing yourself and explaining the situation. This is also a good time to give good reasons for reconsideration, such as explaining that you’ve been paying consistently on multiple credit cards over the last while, mentioning that you haven’t been overspending on your credit cards or paying them late, or that your income has improved recently. If you get a chance, mention why you want the card. The representative will go over the reasons for your denial and will either approve your application or say that they can’t.
Congratulations if you get a favorable decision. If the credit card decision doesn’t change, understanding the specific reason for the refusal can help you be in a better position to apply next time. Even if you don’t get the card you want, there may well be another great credit card that meets your needs.
