Putting it All Together
What To Do If You're Denied
If you have a good credit score, it can come as a shock if you receive a denial when you apply for a credit card!
Don't worry — it's pretty normal. And even better: it can often be overturned.
There are lots of reasons for denials. Sometimes you have inadvertently made a mistake on your application. Sometimes one of your credit reports is frozen. Sometimes the bank flagged your application for further review due to a fraud detection algorithm.
How to get a denial overturned
To try to get a denial overturned you will have to pick up the phone and call the reconsideration department of a bank.
To find the best number to call, I suggest simply googling "[bank name] reconsideration line".
When you are denied for a credit card, the bank is required to inform you of why you were denied. They will issue this in writing and mail it to you. You may want to wait until you have this letter so you will know the reason(s) why you were denied and can be prepared to address them.
Sometimes the issue is something really easy to fix. For example, you made a typo on your application or your credit was frozen when you applied.
Preparing for your reconsideration call
Regardless of why my application was denied, I always go into my call with a few prepared reasons for why I specifically want that credit card. You want to say something beyond the bonus. I usually mention one or two benefits I like that the card has.
It also helps to have an explanation for any recent credit pulls or accounts on your credit report.
I recently had a long reconsideration call with Chase when I was applying for my 9th credit card with them (and 3rd Ink card!). The representative asked me why I need another Ink card. I told him that I had started a new business (this one!) and wanted to keep my finances separate.
Here are some ideas for things you can say during your reconsideration call.
The Reconsideration Call
- "My friend has this card and loves it!"
- "I am looking for a card with XYZ benefits and this card seems perfect!"
- "I have some trips with XYZ airline coming up and am interested in the free baggage benefit."
- "You can see that I have excellent credit and always make my payments on time."
- "I've been a customer of your bank for X years and have been so happy with your cards and service!"
- "I have some big purchases coming up and really hope to put them on my new card!"
- "We travel a lot and need a card that includes travel insurance."
Reconsideration tips by bank
American Express
If American Express does not think they will approve you, you will generally get a pop-up notification that states you are not going to be eligible for a sign up bonus. This is referred to as "Pop-Up Jail." I've been in pop-up jail for quite a few years! Some people say the best way to get out (and be eligible for Amex cards again) is to keep spending on the Amex cards you have.
Barclays
Barclay reconsideration is a brutal process but we have put up with it multiple times! With Barclay business cards, you often get an auto-denial. And then you have to submit a mound of paperwork to try to prove your identity. Some people do get auto-approved, too. If you get denied with Barclay, prepare for a long wait! But the payoff is worth it.
Capital One
Capital One rarely (if ever) reconsiders a denial. They also are known for denying people with good credit, even in the 800s. It can still be worth calling, though. My dad was denied but was able to have it overturned when the rep looked into it and discovered it was simply because one of his credit reports was frozen.
Citi
Citi has become particularly stringent with some of their card approvals and does not often reconsider a denial. They are more likely to reconsider on co-branded American Airlines cards.
Chase
Chase often reconsiders denials. Make sure you understand the 5/24 rule and that you fall within the parameters.
Another common denial reason with Chase is due to total credit extended to you. Chase typically does not like it when all the credit they have given you (across all cards) is approaching 50% of your household income.
To give myself a better chance at auto-approval, I often proactively reduce my credit lines before applying for a new card with Chase. So if our annual income is $80,000, and I have four cards with Chase that each have a $10,000 limit, I would reduce the limit on two of them to $5,000 to give myself a better chance at auto approval.
