Things You Can Do If Your Credit Card Application Is Denied

Even though having your credit card application rejected may be upsetting it is not the end of everything. Hundreds of applications get rejected every day, the reasons may vary from person to person, it could be that your score is not good enough according to the specific credit card you applied for, or that you have a limited credit history, or something else. It is important to know what your reason for getting denied was so that you can work on the main thing and ensure that the next time you apply for a credit card, the application does not get rejected.

Things You Can Do If Your Credit Card Application Is Denied

Reasons:

  1.       A low credit rating.
  2.       Lack of or minimal credit history.
  3.       Insufficient income.
  4.       Excessive debt.
  5.       Excessive credit card requests.

What to do?

Request the issuer to reconsider:

Most of the time when you receive a letter of rejection from the issuer, they mention the reasons too but if somehow, they did not, then you can request a reason. If the rejection happened because of a lack of proof or documents you can provide them and ask them to reconsider your application.

 Apply for a card that would fit your profile:

Whatever the reason may be for the rejection wait before you apply again. If the reason for rejection was due to your low credit score or something along the line then you should be aware that a credit score does not rise overnight. You should consider applying for a different credit card that would fit your profile and also side by side help you raise your credit score.

Review your credit reports:

If your credit card application gets rejected, you should definitely thoroughly check your credit report to find out why it got rejected in the first place and then you can work on those flaws so that the next time you apply for a credit card it would be sure to get accepted.

Apply for a secured credit card:

This option is for people who have a very poor credit score or a credit score not up to the mark for the particular credit card for which you applied to. In those cases, a secured credit card can help you. A secured credit card does not require you to have a high credit score actually it does not need it at all because it is issued against a fixed deposit. It is one of the best methods to get your credit score on track. There are many banks that offer secured credit cards like SBI Bank, Axis Bank, Kotak, and many more.

Lessen making numerous inquiries:

It is possible that you will apply for more credit cards in the event that your initial application was denied when you were in need of the money. That would not be the best course of action, though, since you should be aware that applying for many credit cards quickly can lower your credit score due to hard inquiries. If your credit score was the reason for your rejection, this would not be the best approach.

Bottom Line:

If individuals are rejected for a credit card, they may get a message outlining the causes why. Utilizing the knowledge, users may make changes to their finances and credit history to increase their chances of acceptance in the upcoming time. They might even be eligible to request the card provider to change their mind in certain circumstances.

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