Online Credit Card Application Refused? Take These 4 Steps

Have you had your credit card application refused? Imagine this scenario, you receive an envelope in the mail with a great offer for a low interest credit card. You read all the fantastic details, even the dreadful small print and you make the decision that this card fits your needs. You fill out the required forms and anticipate the day that the card would arrive. However, what comes in the mail is not an acceptance and a brand new credit card but a denial. Whatever your emotions - be it anger, sadness, or fear - none of these will help you get your card!

So, what should you do?

#1. The number one thing to do is to read the letter carefully. Find out the essential details included in the letter you received when your credit card application is refused why you were denied credit, or necessary information on how to obtain those reasons. Was a credit report was used in making that decision? If so what is the name of the name and address of the credit reporting agency? Here are some possible reasons for denial:

• If you haven't lived at your current address long enough, usually for 3 years or more
• If you haven’t been employed at your current job a decent amount of time
• Or your current income is not enough to meet this particular creditor’s minimum income requirement

#2. If the reason for your denial is not clear to you, then it is essential to contact the credit bureaus for further clarification. Find out the exact reasons or the exact standards that you did not meet. This information is important to know and understand and obtain a free credit report which by law every consumer is entitled to once every year. If you apply for credit again and are turned down, then this reflects poorly on your credit report. The best advice for this situation is to wait at least 6 months if you have been denied by two different companies in quick succession.

#3. If you've been denied credit because of information supplied by a credit bureau, federal law requires the creditor to give you the name, address, and telephone number of the bureau that supplied the information. You should contact this agency for a copy of your free credit report. Federal law states that you are entitled to a free copy report if you’ve been turned down. Once you receive your report, check it for accuracy. Close to 45% of reports have errors. If you find an error, take the necessary steps to correct this by contacting the credit bureau in writing. Include all the proof you may have. Get the credit bureau to investigate the error as it will not cost you anything and will eventually save you time and frustration when it is corrected.

#4. If mistakes on your report led to the rejection of your application, ask the credit bureau to send a corrected copy to the lender. Then you can ask the lender to reconsider your application. However, if you were denied because of a poor credit rating, only better spending habits and time will help you get the credit you desire.

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