What to do if your credit card application gets denied
Or when you mysteriously don’t hear back from the bank!
Hi from Berlin! I have so much to say about this town after being here a week. I can’t wait to share when I return!
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If you’ve applied and run into a denial or any unexpected roadblocks, this post can help you navigate those challenges! It can be discouraging and frustrating but it doesn’t mean it’s final. There’s hope!
The art of getting a card approved
There you are, sitting in front of your computer, thinking about all those welcome bonus points you can get from opening a new card, and how great it will be for booking trips.
Maybe you’ve messaged with me, or taken a class, and I’ve helped you figure out which card is best for you (happy to help anytime - no cost for credit card tips!).
Maybe you have excellent credit and you know you’ve done everything right but when you click “submit” on the application, you get a message on screen that says something like:
“We’ll review your application and be in touch soon”
or
“Unfortunately, we are unable to approve your card application“
It’s hard not to feel like it’s some sort of judgment call or punishment. Money and credit are serious things and it feels personal (and sometimes anxiety provoking) when things don’t go as planned.
For many people, receiving a denial feels like some kind of failure. Others, rush to try to apply again thinking something must have gone wrong only to get yet another hard pull on their credit report and another denial. Some just wait for that follow up from the bank when the application is in review only to never hear back.
But, here's the thing! These decisions are not final! You have 30 days from the time of your application to have the bank “reconsider” your application. In that time, your credit pull is still good to go and they shouldn’t have to pull it again.
The reason for your denial or for your application going into review may have absolutely nothing to do with your credit score or bank history. There are so many reasons why this can happen.
Read on for 5 tried and true strategies that can turn a denial or an app in review into the coveted:
“Congrats! Your new card is approved!”
Learn when to hang tight, when to take steps (and what steps to take) and how to know when to move on.
5 tips on how to have the bank reconsider your credit card application:
Find out the reasons why. The bank is required to let you know why they haven’t approved your application if it’s been denied. They’ll mail this info to you, or it could be waiting for you in the bank app if you have other cards with that bank. You can sit tight and wait for the reasons, or, you can call and find out what they are. I tend to be on the impatient side so typically you’ll find me calling vs waiting even though technically speaking, it’s often better to give it a few days and wait ;) Sometimes, “in review” turns into an approval automatically and if you call too soon, they may not even be able to find your application yet in the system. Make sure to speak to a real person (sometimes it just means pressing “0”) and ask if there is any information missing or anything you can provide that would help them approve your application. If it was denied, inquire about the reasons why so you know which steps to take to address them.
Prepare for the “reconsideration” call. Once you know why your application was denied, you can begin to strategize how to address each issue one by one. A handful of examples!:
Insufficient credit history: maybe you’re new to the US or have a limited credit history for other reasons. Point to your excellent payment history on the card(s) you do have as well as your income, etc.
High credit utilization: If you’re proportionally using too much of the credit that’s available to you, your credit utilization will be high. If you have other cards from the same bank, you can offer to move available credit (not to be confused with a credit balance!) around from another card so that you aren’t asking for more overall credit, just another card. Point out again your excellent credit score, payment history etc to offset this concern.
Too much credit relative to your income: see above! Same strategy can work with this one. Ask to move a credit line over if you have one to move. For example, if a personal card has a 10K limit and I’m getting another card from the same bank, I can ask for 5K of it to be moved to the new card in order to get the card approved.
Don’t be afraid to hang up and call again (HUCA!). I find esoteric abbreviations annoying but in order to make your way in the points game, you might need to have some of these in your back pocket. Never underestimate the power of hanging up and calling again! I’m pretty sure your chances of getting the same rep twice are equal to getting struck by lighting (don’t quote me on that!) so if you find yourself chatting with an unhelpful rep, HUCA and try your luck with someone new.
Don’t assume it’s denied or final. An app in review may just need some extra info from you. Perhaps there’s fraud protection and they just want to confirm your identity (can be annoying but it’s for your own safety!), or maybe there was a mistake on your application. Calling to find out what’s up can clear up a lot of confusion and speed along an approval. You can continue to call multiple times in the 30 days after applying in order to get approved. Your credit card pull is good for that long so you shouldn’t have to have another pull.
I usually google the numbers (carefully!) for the reconsideration lines. If it’s a business card, check for the bank and business card reconsideration line. Make sure to speak with a person and be prepared to discuss your application.
If you’ve applied for a business card and you have an unconventional business, the reconsideration call can feel particularly stressful even when there is NO reason to be stressed. Here’s a flow chart I did not create (and don’t take credit for, ha!) but it can be helpful especially when you’re looking at business card reconsiderations.
For some of the denial reasons, you won’t be able to overcome them. This happens primarily if you have a card that prevents you from getting another card (it happens when you open them in the wrong order!) or if you have opened too many too quickly, too many personal cards, etc.
But, it’s great to remember that a denial isn’t always final. There are some rules you can’t get past with card applications which is why I always recommend doing a wallet edit or messaging me anytime you’re thinking of opening a new card. I’m here to help!
For many of these applications though, you’re really just a step or two from an approval if you take the steps above.
Finally, don’t forget that you can call always call and ask to have your card expedited once approved! If you need a card for a particular purchase or before a trip, this can be super helpful.
And just a quick note to say thanks to all of you for being here and a huge thanks to you for using any of my links when you apply for cards. It helps my little business that could chug along!
Have any questions? Leave a comment here or message me!
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Have to tell you that I took your advice and it worked - thank you!
Today I applied for card number #5 since I started following your advice, and I did not get auto approved like I did for the first four cards. Such a bummer, but I will call the recon line like you said! And HUCA if I have to :)