Declined Credit Card Application
We often see a lot of panic, or mistakes made, after a declined credit card application. The fact is, the further you get in the points and miles hobby the more likely a denial is to happen. This can happen for a variety of reasons, which we will discuss, but there is no reason to get upset or offended when it happens. It's a natural progression when you're involved in miles and points, and I'll give you some pointers on how to handle it.
Don't Panic & Find Out The Reason Why
One should not panic when dealing with a declined credit card application. They will happen, but there are some steps you need to take when it does. First off, you will want to know why. The bank will mail you a letter within 7-10 days explaining their reasoning. Some banks will let you view that electronically right away as well. For example, Chase may upload letters to your account. These can be a little tricky to find at times, but always worth looking for first. American Express has a status application site where you can check the status of your application and see the reason for denial. However it plays out, you will get some type of response in a fairly quick fashion.
Analyze and Evaluate
Now that you know the reason for the declined credit card application, you can begin to analyze what went wrong. Some of this is much more complex than it seems. First off, many of the reasons listed may be generic. We see this often where banks like to just list reasons, and some may not apply to you. An example of this is the “lack of a deposit or banking relationship”. Another popular one is having too many accounts in the last 24 months. This does not mean it can't be overcome.
The most important thing is to double check the card application rules, but take into consideration velocity. We are in a time where everyone wants their cards faster than the banks are willing to give them out. We often need to slow down or take a different approach. An example of this is that Chase might be declining applicants a 4th business card. While the rules allow it, Chase may not be willing to approve that for many. At least for the time being. Again, don't panic. These things can change at any time. You could consider moving on to personal cards and completing your 5/24. We list and rank these cards each month.
Finally, you can always ask in the Facebook group where you can have someone else look at your cards and velocity. We are here to help
Don't Apply For More Cards
I see this almost every week in in the ToP Facebook Group. I got declined for this card, this card, and that card. Full Stop! You don't want to keep applying for cards if you are running up against credit card application denials. It is always best to analyze the initial denial first, as it could be the reason you are getting declined on card attempts two, three, and four.
Reconsideration
We have a full guide for reconsideration that I encourage you to read as soon as you run into a credit card application denial. While not all banks are as willing to do this, it is always worth a phone call. In many cases, we recommend calling several times over the 30 days while the application is active. I would guess that at least half the people that try are able to get a denial overturned. Sometimes it is as simple as just verifying your ID or moving credit limits from another account.
Tips for Navigating After a Declined Application: ToP Thoughts
When faced with a declined credit card application the first thing you want to do is not panic. Then get the reason for the denial, analyze it and formulate a plan. Denials will happen in this hobby, so do not get upset or down on yourself. We will all have them eventually. While we want all the points and cards out there, not everyone will end up with the exact same cards. Use our tips to help you navigate when it eventually comes to your door a knocking. Come over to our Facebook group and let us know your thoughts.
