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What to Do If Your Credit Card Application Is Rejected
Getting rejected for a credit card can be disappointing, especially if you were hoping to earn valuable rewards or take advantage of certain benefits. However, don't despair just yet. There are steps you can take to turn a denial into an approval. In this article, we'll provide you with some practical advice on how to handle a credit card rejection and improve your chances of getting approved. It's time to talk about reconsideration.
Thankfully, Chase, one of the major credit card issuers, has a helpful reconsideration department that you can contact at 1-888-609-7805. When you speak with an underwriter from this department, they have the authority to overturn the decision and grant you approval. So, even if your initial application is declined, there's still a good chance you can convince them to change their mind. However, it's crucial to provide a compelling explanation for why you applied for the card, especially if you already have several credit cards listed on your credit report. For instance, saying something like, "I believe the Ink Unlimited card would greatly benefit my business as it offers 1.5 points on all purchases," will strengthen your case. On the other hand, simply stating, "I just want to receive the welcome bonus," won't hold much weight.
When you apply for a credit card, you might receive a notification that your application is pending. In such cases, it's advisable to wait and see if it gets approved or denied before taking any action. However, there are instances where it may be necessary to call the bank's reconsideration line right away.
If the bank you applied to also offers checking accounts, such as Bank of America or Chase, having a checking account in good standing with them can work in your favor. If your application is denied due to a specific rule, like Chase's 5/24 rule (which limits approvals if you've opened more than five credit cards within the past 24 months), you can discuss authorized user cards and store cards with the reconsideration agent. These types of cards may not be counted towards the rule. Additionally, a manager might be able to exclude them in order to grant approval for the card.
There have been success stories of people being initially denied for credit cards but then calling the reconsideration line to explain why the denial shouldn't apply to them and why they genuinely need the card. You can offer to shift credit lines from other cards (or close an older, less-used card) to get the new application approved. However, keep in mind that closing one of your first three credit cards may have a negative impact on your credit score. It's helpful to explain why you want the card, highlighting the benefits it offers, such as extended warranty coverage, travel insurance, or primary car rental protection. Moreover, it's crucial to convince the reconsideration representative that you are responsible with your finances and won't accumulate debts you can't pay off.
If you have been a loyal customer of the bank, make sure to express your loyalty and mention any checking account you hold with them. You can also explain why you or your business require an additional card, such as for separate spending or catering to specific clients. Asking to speak with a manager may also increase your chances of getting an approval on the spot. Remember to be friendly and establish a connection with the reconsideration representative. Sometimes, even discussing shared interests, like personal hobbies Etc., can create a positive rapport and improve your chances of approval.
Use your negotiation skills to your advantage. On occasion, express your willingness to start with a smaller credit line and gradually increase it over time. If you already have a credit line on another Chase card, you can inquire about the possibility of splitting and reallocating your existing
When the initial underwriter declines to approve you for the card, you can always call back and try your luck again (Someone once received an underwriter's approval after being rejected 5 times!). Bottom line Don't give up!
Editorial note: Opinions expressed here are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post
