Prior to reapplying for a credit card if your initial application has been rejected, it’s crucial to take your time and conduct some research. Although getting a rejection can be upsetting, it’s important to make the required adjustments to improve your chances of getting accepted the next time. Here are five practical suggestions to think about before reapplying for a credit card following a denial:
1. Wait Before Reapplying
Each person has a different time limit for reapplying for a credit card following a denial. Waiting at least six months between credit card applications is often advised. The exact reasons for your denial and the health of your credit, however, can change this. Wait four to six months or more before reapplying if your rejection was the result of numerous rigorous inquiries. You may need additional time to rehabilitate your credit before reapplying if your credit score was the main factor in the denial.
2. Understand the Reasons for denial.
A lawful adverse action notice must be given to you by the issuer when your credit card application is rejected. The credit bureau that was utilized to evaluate your application and the score that was taken into account are both listed in this notice’s explanation of the reasons for the refusal. This message should be carefully read because it contains essential information about the reasons why you were declined. Before reapplying, use this information as a guide to make improvements.
3. Improve Your Personal Finances
The key to raising your credit score is to actively manage your finances. Make it a priority to pay all of your payments on time, including any loans, phone bills, and utility bills. Address any previous problems or errors you find on your credit reports as well. You can contest any errors using Bankbl’s Direct DisputeTM tool or ask to have a late payment removed from your reports using a goodwill adjustment letter. Make a strategy to pay off any outstanding credit card debt to lower your credit utilization rate.
4. Check Your bank’s Approval odds.
Before reapplying for a credit card, research the credit scores required for specific cards and ensure they fall within your credit range. BankBL’s Approval Odds tool can provide guidelines on the likelihood of approval based on your credit profile. While it’s not a guarantee, it gives you an idea of whether you qualify for a particular card. Pay attention to the types of credit card offers you receive in the mail as well, as they can provide insights into the cards you’re likely to be approved for.
5. Apply for the Right Card
If you’re working on rebuilding your finances or establishing credit, secured credit cards can be a suitable option. These cards are easier to get approved for and can help you rebuild your credit history. Balance transfer cards are another option if you have credit card debt. These cards typically offer a 0% APR introductory period for balance transfers, allowing you to pay down your debts without accruing interest.
Remember, a credit card denial is not a reflection of your self-worth. Use it as an opportunity to improve your financial health and make informed choices based on your credit profile. With time and effort, you’ll increase your chances of approval and open up a range of credit card options.