Rejections are a heard break. Irrespective of the kind of rejection – rejection by your lover, rejection by an employer or a school or a college or even rejection by a credit card company – they cause a heart break, big or small. While it may not be easy to get over all your rejections or heart breaks, some of them are easy to fix. If your credit card application was denied – we will show you how to get the same credit card approved and get over your heart break!
If your credit card application was denied, it does not mean that everything is lost. First thing you need to do is to wait for the letter from the credit card issuing company to arrive. It usually takes about 7-10 days for that dreaded letter to arrive. This letter will contain your credit score and will also highlight the key factors considered in evaluation of your application – this is where lies the secret to getting your credit card approved.
How is your Credit Application Evaluated
Credit reporting is a system lenders (like Chase, AMEX) use to decide whether or not to give you credit or a loan and how much interest they can charge you for it. Your credit report is based on your credit history, the bills payments you have missed or been late paying, loans that you have paid off, plus your current amount of debt. A credit report contains information on where you work and live, how you pay your bills, and whether you’ve been sued, arrested, or filed for bankruptcy.
Consumer Reporting Agencies (CRAs) gather this information and sell it to creditors, employers, insurers, and others. The most common type of CRA is the credit bureau and in the US there are 3 major credit bureaus – Equifax, Experian and TransUnion. So, whenever you request a new credit card application for say a Chase or an Amex credit card, these banks request the credit bureau to provide your credit report and pay a stipulated sum to them towards processing fees. Once your credit report is obtained, these financial institutions evaluate it within their own system to decided whether or not to approve your credit card.
Each bank has a different evaluation procedure and criteria. Say if you were to apply for Citibank and Amex card at the same time, it is possible that your application gets approved at one place and gets disapproved at the other.
Credit Card Denied – How to get the same credit card approved
If your credit card application was denied, you need to wait for the application response letter from the credit card issuing company to arrive. It usually takes about 7-10 days for it to arrive. What you need to do is create a plan and follow the below mentioned steps to get your rejected application approved.
1. Get the application response letter:
Once your letter arrives, you don’t have more than 30 days from the application date to get it reconsidered, so mark your calendar for reminders to act on it. If you wait more than a month and apply – there would be another new hard inquiry in your credit report.
2. Get the credit report:
Your letter will also list the bureau it used in making the decision on your application. Go to that particular bureau website and get your free credit report. Here are the links: Equifax, Experian and TransUnion. You would be able to get your credit report for free or for $1. Remember to cancel after you get the report.
3. Match your application response letter and credit report
Your letter will usually list 2-5 reasons why your credit card application was denied. Usual reasons for denial include the following:
- Too many recent inquiries
- High proportion of loan balances to loan amounts
- Length of time the account has been established
- High proportion of revolving balances to revolving credit limits.
- Late payment
4. Fix errors and incorrect or old information
If your application response or credit report lists an item, which is incorrect – get it corrected asap by filing a dispute with the credit bureau. All these credit bureaus have a “File a Dispute” section in their website. There may be minor discrepancies too like incorrect address, employer or phone numbers, which you should get corrected.
5. Have a good reason for applying for a new card and your current situation
This is probably one of the most important things you need to work on. Take a piece of paper and write down the need to apply for a new credit card. You should have at-least 5-6 lines to speak on the subject. Something like: “I took up a new job, which pays me higher but has resulted in life style changes and I found that your credit card will help me use the card smartly and collect points while doing so. I’m not a heavy users of credit and never plan to be, but have heard from many sources that your card is the best rewards card on the market today, and I do take my credit responsibility seriously and deserve a chance with your card.”
If you’ve taken a lot of balance transfer or have a lot of credit due, you will see it reflected in your credit report and you need to reiterate those points in a positive manner: “Although I have a lot of revolving credit, you can see from our credit report, I’ve never missed a payment or been late. I’m using the balance transfer to close off my high interest debts, which is a smart financial decision. I also checked my credit report for accuracy and I note the current credit score is 705, which is fair, but more importantly is free of any collections or late payments.
6. Be truthful
Even if your current situation is bad i.e. you have late payments or collections – being truthful is only going to help. Try to find positives and pitch them: ” I did have a medical collection in the past, which has now been cleared. The primary reason for the collection was the delay in processing insurance claims and the long drawn out process of medical reimbursement and payment. The due was too high for me to make a payment from my pocket and I had no option but to wait for the reimbursement. I am sure, you too, have faced the high cost of medical treatment and lenghty delays in insurance payments and reimbursement”
7. Talk to a Human – be polite and be patient
Prefer to call the reconsideration numbers listed below and talk to a human instead of reaching a computer to make a decision. You need to do an emotional pitch which only humans understand. During the entire process, be polite and be patient – being rude or impatient is not going to help your cause in any way.
Important Reconsideration Numbers for Credit Card applications
(866) 314-0237– Main Application Reconsideration Line
(888) 245-0625 – Personal credit analyst
(800) 453-9719 – Business credit analyst
Bank Of America
(866) 458-8805– General Account and Reconsideration Line
Barclay’s Credit Card
(888) 232-0780– General Card Services and Application Line, dial option 3 for application status
(866) 408-4064– Credit Line Questions
(800) 625-7866– Application Services Line
(800) 951-6951– General Customer Service, automated
Citibank Credit Card
(800) 695-5171– Personal Application Status and Reconsideration Line with live rep
(800) 763-9795– General Personal Application Inquiries with live rep
(800) 645-7240– Business Application Status and Reconsideration Line
(800) 947-1444 – Credit Card Underwriting Services, automated