What to Do If Your Credit Card Application Was Rejected

Photo: Getty ImagesNo one likes to admit that they’ve been rejected for a credit card, but it happens to more of us than you might think.According to the National Foundation for Credit Counseling, of the 19% of people who applied for a new credit card in 2018, 8% percent also got rejected. Meaning quite a few people are facing the same dilemma.While being denied from a credit card can feel like flunking a test, it usually just means you need to match your current credit and income profile to a card that better suits you. We’ll walk you through the basics of what to do if you’ve just been rejected from a credit card application.Find out why you were rejectedIf you were rejected for a credit card, you won’t be informed of the reasons why on the spot, but you will be sent what’s known as an adverse action letter. The notice—which typically comes in 7-10 business days—will tell you your reasons for being denied, and the name and contact info of the credit bureau that was used in determining your credit score (also included).Typical reasons for denial include low credit score, too much existing debt (this can be from multiple sources, even like student loans, a mortgage, and other credit cards), too many inquiries or existing credit cards on your account, recent credit delinquency, or that your income is simply too low for the card you applied for. You also may not have enough of a credit history for a credit score, which will be reflected in your adverse action letter.How Your Credit Score Is DeterminedDon’t believe the myth of the single credit score. You actually have hundreds of scores! Don’t…Read more ReadMake sure your credit history is correctThe first thing to do is determine if your credit score
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