Why Do I Keep Getting Denied for Credit Cards and How to Fix It

Getting denied for credit cards can be frustrating and confusing, especially if you're not sure why it's happening.

Your credit score plays a significant role in credit card approval, with a score of 700 or higher generally considered good.

If your credit score is lower than 700, you may be denied for credit cards, but there are steps you can take to improve it.

A recent study found that 61% of credit card applications are denied due to poor credit history.

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If you're getting denied for credit cards, it's likely due to common factors such as a low credit score or insufficient income. Credit card issuers also have unwritten rules that can affect approval. One key factor to consider is your credit utilization ratio, which is not explicitly mentioned in the article sections, but is an important aspect to keep in mind.

If you're applying for a Chase card, make sure you're under 5/24, meaning you've applied for fewer than 5 credit cards in the past 24 months. This is a specific rule that can impact approval. Additionally, ensure you haven't applied for another card within 30 days, as this can also lead to denial.

Here are some common reasons for denial that you can check before making a reconsideration call:

Having a recent public record can be a major setback for your credit score. A public record can include things like bankruptcies, foreclosures, and tax liens.

These serious delinquencies are a sign to the credit card company that you don’t have enough money to meet your financial obligations. Collections and public records hurt your credit the most when they first appear on your credit report.

As time goes on, collections and public records affect your credit less. However, they can still have a significant impact on your credit score for several years after they're first reported.

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Recent delinquency is a significant factor in credit card denial. A recent payment history is better for predicting how you'll handle a new credit obligation than history from several years ago.

A 90-day late payment from six months ago will hurt your chances of getting approved more than the same negative entry from six years ago. This is because credit card issuers consider how long it's been since you were last delinquent.

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Collections and public records affect your credit less as time goes on, but they still hurt your credit the most when they first appear on your credit report. This is especially true for serious delinquencies, which can indicate to the credit card company that you don't have enough money to meet your financial obligations.

A charge-off is a credit card balance that went unpaid for six months or more, and it's one of the worst things that can appear on your credit report. If you failed to pay another credit card, especially if it was recent, a new credit card company will hesitate to give you a credit card.

Credit card issuers have their own set of rules for determining who gets approved for their cards. Sometimes, these rules aren't explicitly stated, and you might be denied for a card without knowing why.

One common mistake to check before making a recon call is if you're applying for a Chase card, make sure you're under 5/24. This means you shouldn't have applied for more than four credit cards in the past 24 months.

Applying for too many credit cards and loans within a short period can get your credit card application denied. There's no set number of inquiries that will prevent you from getting approved, but minimizing your credit inquiries is a good idea.

If you've been denied for a credit card, it's probably because of one of the following reasons:

Here's a breakdown of each reason:

Keep in mind that each credit card issuer has its own set of rules, so it's essential to research the specific requirements for the card you're applying for.

If you're consistently getting denied for credit cards, it's likely due to issues with your credit application. You could have accidentally entered incorrect information on your application, which can cause you to be viewed in a more negative light.

You may need to wait until some inquiries fall off your credit report before applying again if you have too many recent credit inquiries. Hard inquiries remain on your report for two years but won't affect your credit score for that long.

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A thin file or limited credit history can also be a reason for denial. Without a credit score, the credit card company is more likely to deny your application because it can't gauge your creditworthiness. Consider a secured credit card or student credit card to get your credit history started.

In some cases, a low credit score (below 700), not enough annual income, or too many recent credit inquiries can be the reason for denial for a specific credit card like Chase Freedom Unlimited. You can call the credit card company and ask them to reconsider if you think they need more information.

Here are some possible reasons for denial:

If you've been denied for a credit card due to a low credit score, it's essential to understand the minimum credit score requirements for approval. According to FICO, good credit starts at a 670 FICO Score, but some top rewards credit cards require a 700 credit score or higher for approval.

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Applying for a premium travel card with an average or below-average score is a common reason for denial. Consider highlighting any major changes in your financial situation, such as a new job or a loan recently paid off, to improve your chances of approval.

You can also work on getting your credit score up and reapply once it's within the required range. A secured credit card or student credit card can be a good option if you're just starting out with credit.

Here are some key facts to keep in mind:

Remember, improving your credit score takes time and effort, but it's worth it to increase your chances of getting approved for a credit card.

If you're under age 18, your credit card application is likely to be denied because you're under the legal age to get a credit card.

Some exceptions may apply, such as if you have your own income and you've already been added as an authorized user to your parents' credit card.

Filing bankruptcy is a significant factor that can affect your credit score. Filing bankruptcy indicates that you didn't pay your debts as originally agreed, which can be a major red flag for lenders.

A recent bankruptcy can make it incredibly difficult to get approved for a new credit card because you could technically include it in the bankruptcy. Even if your bankruptcy has been discharged, it may still take a while and some positive credit history before you'll qualify for certain cards.

You may still be able to get a credit card if you have a bankruptcy on your credit report, but it will likely be a secured credit card that requires a security deposit or high fees and interest. Keep in mind that you may need to provide a security deposit or pay high fees and interest.

It can take a while to recover from a bankruptcy and rebuild your credit, but it's not impossible. Some people have successfully rebuilt their credit after a bankruptcy by making on-time payments and keeping their credit utilization low.

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If you can't get a credit card, it's not the end of the world. Consider applying for a secured credit card or an unsecured credit card for people with limited credit who are not in school. You could also become an authorized user on someone else's credit card account, which will give you the chance to build credit history.

Becoming an authorized user is a great way to start building credit, but it's essential to understand that you'll be responsible for the account holder's actions. This means if they miss payments or rack up debt, it will negatively impact your credit score.

If you're having trouble getting a credit card, it's likely because you're applying for the wrong cards or have submitted too many applications in a short time. Factors like limited income, debt from loans, unpaid bills, or limited credit history could also prevent you from qualifying for certain cards.

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You can also try calling the card issuer's reconsideration line to see if they will reverse the decision. This is a good option if you think your application didn't accurately represent your current financial situation.

Here are some steps to follow if you want to make a reconsideration call:

Remember, making a reconsideration call is not a guarantee of approval, but it's worth a shot if you think you've been unfairly denied.

If your credit card application is declined, it's essential to take proactive steps to improve your financial situation. Wait at least 6 months before applying for another card, but if you can't wait, consider applying for a card that's easier to qualify for.

You should ask for your application to be reconsidered if you think it didn't accurately represent your current financial situation. This can give you another chance to get approved.

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Before applying for another card, it's crucial to know why you were denied. You'll typically receive an adverse action letter in the mail explaining the reasons for the denial. You may also be able to contact the card issuer directly to get this information.

To improve your credit score, you can try increasing your credit utilization ratio or paying down other credit card balances. One relatively easy way to improve your credit score is through Experian Boost, which can give you credit for on-time payments you've made with your phone, utility, and certain subscription services.

Here are some steps you can take to improve your credit and financial situation:

You can try calling the bank's reconsideration line to ask them to review your application again. A credit card reconsideration call, also known as a "recon" call, is a phone call to the bank's reconsideration or customer service line after your application has been denied.

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The entire purpose of the call is to request that the bank reconsider your application and provide a second chance for approval. You can make a recon call even if you've been denied due to a low credit score or high credit utilization.

You'll have a better chance of getting approved if you can explain your situation and provide additional information that may help the bank reconsider your application. This could include information about your income, employment history, or other factors that may have been overlooked.

Business card applications often have a different process than personal cards, and it's generally best to wait for the written decision letter in the mail before calling recon. This is because the bank's process for approving business cards can be a bit different.

You can call the bank's reconsideration line after receiving a written decision letter, and ask them to reconsider your application. If you've been flat-out denied, you can call right away and ask for the reasoning, and be prepared to ask them to reconsider.

Chase Business has a specific reconsideration line number: 800-453-9719. Keep in mind that making a recon call is not a guarantee of approval, but it can increase your odds of getting that decision overturned.

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