Denied Credit Card? Here's Why And What You Should Do Next (2024)

FAQs

Denied Credit Card? Here's Why And What You Should Do Next? ›

You should also request a copy of your credit report to ensure all information is accurate. If you were denied due to a low credit score, spend time improving your credit to make you a better candidate next time around. If you see incorrect information on your credit report, you can dispute it with the credit bureau.

It's a good idea to wait three to six months between credit card applications. Otherwise, it might look like you're applying for too much new credit in a short period of time.

If you were denied because of incorrect information in your credit report, get your credit report and dispute the errors that are in it. If you were denied because you have too many credit cards or too much outstanding debt, you can reapply after paying down your balances or closing some accounts.

As a general rule of thumb, consider waiting around three to six months before reapplying. In the meantime, try to improve your creditworthiness, which might increase your chances of getting approved when you reapply.

A hard inquiry from a card application can cause a small, temporary drop in credit scores. A denial or approval won't hurt your credit scores, because decisions aren't reflected in credit reports. When making lending decisions, card issuers use credit reports and credit scores to determine creditworthiness.

How soon after applying for a credit card can I reapply? If your credit card application is rejected, it is advisable to wait for at least six months before reapplying. Reapplying too soon may lead to multiple inquiries on your credit report and further damage to your credit score.

Getting denied credit itself doesn't affect your credit score, but the hard inquiry from applying for credit could impact it slightly.

Sometimes you can persuade the creditor to reconsider your application. Check the site of your state attorney general's office for information about the state's equal credit opportunity laws. You may be able to see if the creditor violated state laws. Consider suing the creditor in federal district court.

First, find out what caused the lender to turn you down. If a lender rejects your application, it's required under the Equal Credit Opportunity Act (ECOA) to tell you the specific reasons your application was rejected or tell you that you have the right to learn the reasons if you ask within 60 days.

What credit card is the easiest to get? ›

Maybe you have a bad financial association and too much existing debt. Perhaps your salary is listed differently in two records, or you once missed a credit card repayment. It could be tricky to pin down the cause of a denied credit card or loan application, even with a good credit score.

Under the Equal Credit Opportunity Act, creditors have 60 days to provide you with a specific reason as to why you were denied a line of credit. This is known as an adverse action letter. You may be rejected for a variety of factors, such as having a low income, a short credit history or too much credit card debt.

Many card issuers have criteria for who can qualify for new accounts, but Chase is perhaps the most strict. Chase's 5/24 rule means that you can't be approved for most Chase cards if you've opened five or more personal credit cards (from any card issuer) within the past 24 months.

The first item on your to-do list after your card is declined should be calling your credit card issuer. If you have an app for your credit card, you should check that, too. Look for fraud alerts or any suspicious activity within your transactions, as well as issues involving your balance and payments.

It's a good idea to wait at least six months between credit card applications to protect your credit score and avoid exceeding certain card issuers' restrictions. Several applications submitted within a short time frame could damage your credit score for a period of time.

The Bottom Line

Getting denied for a loan or credit card will not be recorded on your credit report, and it will not directly impact your credit scores. To improve the chances that you'll be approved for credit, you may want to take a look at your credit before you apply, and take steps to improve it if you need to.

No, denied credit applications won't appear on your credit report. Lenders don't report whether your applications were approved or denied because even approved applications don't necessarily result in a new account. Generally, if you're approved for a credit card, the card issuer will open the account automatically.