Dealing with a credit card application rejection can be difficult. However, even though a rejection is painful, it is something that you can learn from. There are few things that you can do to recover after your credit card application is denied.
Read the Notice
The Fair Credit Reporting Act requires that the credit card issuer send you a notice if they deny your application. Even if your credit is denied for a reason other than credit, they will still send you a notice. You may get an email notice. You may also get a phone call or letter.
You will get a better idea of what you can do to improve your chances of getting approved the next time if you take the time to read the notice. These are some of the reasons that credit card applications are often rejected:
Limit Credit History
If you have just established credit, then you will have a harder time getting approved for a credit card.
Negative Items on Your Credit Report
Late payments, collection accounts and public judgments can stay on your credit report for up to seven years. You will have a harder time getting approved for a credit card if there are any negative items on your credit report.
Too Many Credit Applications
If you have recently applied for many credit cards, then a credit card issuer may think twice about extending credit to you.
Some credit card issuers will reject you if your income is about the same as your monthly rent. Many lenders set a minimum income requirement.
Too Much Debt
If you have multiple loans, credit cards and a mortgage, then you may have a hard time getting a credit card.
You will probably be denied credit if you are under the age of 18. You may also be denied credit if you are under 21 and do not have any income.
Review Your Credit Report
You should make sure that all of the information on your credit report is current. It is estimated that 25 percent of credit reports have an error. You can get a free credit report after you are denied credit. However, you will have to request a credit report within 60 days of getting denied credit.
Check the Application
Ask for the Issuer if They Will Re-consider the Decision
It may be best for you to just accept that you did not meet the standards. However, if you were close to meeting the standards, then you may want to ask the issuer to re-consider the decisions. You may not get a yes, but it is definitely worth a try.
Apply for Another Credit Card
You may be able to get another credit card. For example, people with bad credit or no credit are often able to get a secured credit card. You will make a deposit on the credit card. In most cases, the credit limit is equal to the deposit. Paying on time can help you re-build your credit.