What if Your Credit Card Application is Denied?
It seems like I receive at least three credit card offers in the mail each week saying that I am pre-approved for their special introductory rate. With all the offers I receive it never crossed my mind that my credit application would be turned down. I learned the hard way that just because I received a credit card offer in the mail does not mean I will be approved.
There are several reasons why a credit card application may be denied. It could be simply human error and the credit application was not filled out correctly or it was not entered into the card issuer’s database correctly. Other reasons include: the person has not lived at their current residence long enough, they have insufficient income, no credit history, they may have a poor credit history, or maybe they have not been employed long enough with your current employer. As you can see there are several reasons that a credit card application is denied. The good thing is they all can be fixed in time.
There are things that you can and should do if your credit card application is denied. You may want to call the card issuer’s customer service and make sure the information they have on record is accurate and complete. If all the information is accurate you may want to ask them why you were denied and what you can do to improve your chances of being approved.
If your credit card application is denied the card issuer is required, by law, to send you a letter stating why. Sometimes the reason is evident while other times it is vague. If you contact the creditor directly they are obligated by law to provide you with a specific reason, if asked, within 60 days of being denied.
If your credit card application is denied it is important to find out why so you can take steps to build your credit, improve your credit, or fix any issues that you may not be aware of.
If you are determined to get a credit card I recommend applying for a secured credit card. Secured credit cards typically require a small deposit with the card issuer and may earn interest while the account is open. The credit you will be awarded usually is a percentage of the original deposit amount. Over time as you build your credit you may qualify for more borrowing power.