your credit card application denied? No one likes rejection, but there are a
few things you can do to improve your chances of being approved.
It helps to
know how credit card companies decide whether to approve potential customers.
going to take a look at how you've handled credit in the past. How you've made
your monthly payments. How much debt have you gotten yourself into and how much
new credit have you applied for," says Justine Orantes, a credit counselor
at ClearPoint Credit Counseling Solutions.
also taking a look at what your income may be. With that
in mind, let's say you do get denied. What went wrong?
There are a
few things it could be. Maybe you simply made a mistake on the application.
Maybe your credit report has an error. It could be that you're recently
unemployed, or your income is too low. Of course, a bad credit history will
also affect your approval. And even if your credit history looks good, if
you're applying for a lot of credit all at once, a bank may suspect you're
having financial problems.
you are denied credit, what should you do?
Step one: Check your credit report for errors. You can
get one free copy of your credit report per year from each of the three major
credit bureaus by going to annualcreditreport.com.
recommended that you review your credit report on at least an annual basis to
make sure that everything is correct on your credit report," says Orantes.
If an error
isn't to blame, you probably need to work on your credit. "Take a look at your credit report," says
Orantes. "If there's a delinquency, what was that delinquency? How long
ago was it? Has it been resolved? If it hasn't' been resolved then go ahead and
take a look at how to go about resolving it."
missing payment due dates now? "If you're having difficulties, it's always
recommended you reach out to your lender or your creditor and have them explore
options with you so that you are current," says Orantes.
You may need to
reevaluate your credit usage. A good rule of thumb is to keep your credit card balances
below one-third of your total available credit. That's the sum of all your
were denied over an income
issue, you might have to wait to apply for credit until you find employment, or
your income increases.
you're ready to apply for a card again, do your homework. Give the issuer a
call. Ask what their approval guidelines are for that particular card. Do they
have a minimum income requirement? What credit score are they looking for?
care when filling out the application.
make sure you print clearly on the applications," says Orantes. "Have
the banker or whoever gave you the application review it and make sure you
filled in everything and you're not missing any information."
little research, and maybe some credit repair, you'll do well to be approved
the next time around. Kristin Wong, CreditCards.com.
See related: Applying for a credit card? Your odds for approval, Preapproved vs. pre-screened card offers: a big difference