You received an offer to apply for what seems to be a great credit card. After submitting the application, you receive word that it is denied. Confused, you are not sure what to do next. If you’ve had a credit card application denied, here are your next steps:
Ask Why the Application Was Denied
Most credit card companies will supply at least some of the reasons why they chose to not accept the application. In fact, you may see them listed in the email or snail mail notification containing the rejection.
The problem may be that you forgot to include some piece of information that the card issue considers essential. Maybe you already have card limits on other accounts that make your potential debt to income ratio a little uncomfortable for the issuer. You may be carrying balances on other cards that leave the issuer wondering if you have enough income to manage the new card responsibly.
Those Dreaded Negative Comments
Perhaps the reason you had a credit card application denied had to do with negative comments on your credit reports. Your next step is to order copies of those reports from each of the major agencies. Errors do happen, and there could be something on one or more reports that is outdated or just plain wrong.
If you do find comments on your reports that are in error, challenge them and provide proof they do not apply to you. While it will take a little while, getting those unfortunate comments removed and maybe boosting your credit score by a few points.
When the comments are connected with an account you have or had in the past, contact that creditor directly. If the comment is an error, keep up the communication until they submit updates to the credit bureaus.
Should you find comments related to accounts you never opened, there is the chance of fraud going on. Report those to the bureaus and the card issuers at once. In the best case scenario, they will remove the items from your reports and the creditors will open investigations that put an end to the fraud.
Having a credit card application denied is not the end of the world, but it is a call to action. Find out what went wrong, then fix it. The next time you apply for a card, your odds of being approved are much higher.