People apply for new credit cards for several reasons, including getting fantastic bonus offers, reward categories, and better travel perks. Others also sign up for new cards with a 0% APR offer to transfer a balance from a high-interest rate card. Sometimes, you might not succeed in applying for a choice card. This is a common scenario since credit card issuers have hardened approval rules. So, what happens when you’re denied outright? Do you give up? Unsuccessful card applications occur for various reasons different from violating any rules. If you genuinely require a new card, you should opt for a reconsideration.
What’s Credit Card Reconsideration?
If you feel that a card application was cancelled on improper grounds or for no reason, you can always reach the issuer’s reconsideration line. This process of contacting a credit card issuer to find out if you can do anything to get the application approved is called credit card reconsideration.
Most issuers have designated phone numbers that clients can call to inquire why their applications were denied. While it doesn’t guarantee approval, doing so if you need the card can be a perfect idea. Before you take that step, it’s vital to know what to do and how to carry it out. Let’s discuss a fool-proof formula on how to be reconsidered for a credit card.
Why Was Your Application Denied?
Ready to make the reconsideration request? Wait! One mistake you shouldn’t repeat is to fail to know why you were denied the application. Try and figure out why that could have happened. This can help you formulate the argument and determine the odds of a successful reconsideration. Below are significant reasons for credit card denials:
- Negative credit reports like late payments and collection accounts can harden new credit card approvals.
- Limited credit history can hinder your success. If you’re a startup and still establishing a credit history, qualifying for a low-interest card with many rewards can be difficult.
- Numerous credit inquiries on your report can make issuers hesitate in giving you extra credit. If you have several credit cards or have applied for many in the recent past, there will be minimum approval chances.
- Too much debt is a stumbling block to obtaining new credit cards. Issuers will not tolerate customers with too many outstanding credit obligations to handle.
- Low income that might be below a specific threshold set by the card issuers can affect your application approval.
- Age factor is a common consideration too. Those under 18 will be automatically denied and even under 21s with no independent income.
- Incomplete credit application. Probably, you never finished the process as required making the issuer lack enough information to approve it.
Some of the above issues are negotiable, while others aren’t. For instance, if you provided little information, you can call again to provide more information for the application to be reconsidered. Other denial reasons like negative credit reports and limited history might not offer any possible re-approval chance.
How to Get Your Credit Card Application Reconsidered
Once you know why your card application might have been denied, contacting the issuer for reconsideration is the best thing. It’s a legal right of a customer to inquire why an application wasn’t approved; sometimes, it could have been a mistake. Here are tips to help you be reconsidered for a credit card:
- Review your credit and double-check the application
Check the rejection notice mail and see what reason is stated. If it mentions credit score as the reason, you can request a free copy of the credit report used in deciding on the application within 60 days. If there’s an error, you can dispute it with the credit bureau. If not, you can find ways to enhance your credit and boost the score.
You can also double-check the information you provided to see if it was accurate. You might have unwittingly devalued your creditworthiness by making wrong entries. Cross-checking can help you find pitfalls that may have caused the denial.
You can confirm with a financial advisor to know what makes up an income to be included and other details. Loan Advisor have often helped individuals with basic tips on settling credit card debt. Reach out to them!
- Call again
After having a decent idea of what the issuer expects and the standards to meet, you can ask again by calling the reconsideration line. If you feel that you met the criteria, contact them. Have a detailed explanation, ready, and be willing to explain that you need a second chance and why you need it. If they ask any questions, be sure to answer them correctly and truthfully. For a successful call, below suggestions can help:
- Be prepared. Before you make the call, have a reconsideration angle in mind. Know why you’re calling and state clearly what might have gone wrong with the first application. You can also research answers to the questions they might likely ask in advance.
- Be willing to negotiate. Remember that your aim is to get reconsidered; thus, negotiation skills will help. Negotiate on other credit lines you might have with the issuer if the current denial can’t be undone. That means you should be ready to also lead the call instead of letting the representative do so.
- Be polite. Etiquette goes a long way to having your reconsideration request approved. It would be best if you remain calm and positive while talking with the customer representative. He/she might be inclined to assist you for that reason.
- Apply for a card you can obtain
Sometimes accepting the issuer’s decision and applying for a different card, you have more chances of getting a better deal. Apply for a card that fits your credit profile and begin from there. You can also try another issuer if you feel unsatisfied; don’t let the first denial discourage and ruin your quest for a new credit card.
The Bottom Line
Credit card denials are common scenarios that people contend with every time. If you ever find yourself in such a situation, don’t give up. You can still apply for reconsideration, and who knows, maybe that can succeed and get you the needed credit card. The formula outlined in this blog can help you do that. Feel free to review it!