Feb 24 2008
What Should You Do if You Get Turned Down for a Credit Card?
So you’ve gone through the long and terrible process of giving your details, only to find that you got turned down. This can feel a little insulting, like a rejection, especially if you feel like you could easily handle the card in question. So what can you do if it happens?
Try, Try Again.
Don’t get upset if you’re turned down at one company – they might have some strange requirement that you happen not to meet. Always try three before you start to despair.
Whatever you do, though, don’t spend a whole day applying for every credit card you can find, just to see if anyone will take you. Each check is counted, and lots of checks on your record make you look desperate, making it even less likely you’ll get a good card – this is known as ‘shotgunning’ your credit.
Get Your Credit Report.
Send off to the credit reference agencies to get copies of your credit reports. There might be something incorrect on there that’s making you look bad, and you need to get it corrected if there is. Make sure you do all this in writing, so there are records of it – don’t phone up and let them fob you off.
Phone the Company.
It’s not a good idea to always deal with credit card companies by post or on the Internet – you should try to phone them up and speak to a real person. This way, you can tell them all your circumstances, make sure everything went through correctly, and question them if you get turned down. If you directly ask why you haven’t been accepted, then they usually have to tell you.
If you’re willing to be pushy, you might even get the decision reverse. If the person you got through to won’t budge, then always ask for their supervisor before you hang up.
Apply for a Less Prestigious Card.
Yes, I know, it sounds bad – but you want a credit card, don’t you? Get a high-rate card from the company whose card you want, and then pay it off on time each month. You’re building your credit rating. The chances are that you’ll be able to persuade the company to replace your card with the lower-rate one after a few months.
If you have a very bad credit rating, you might find that you are only offered secured cards. These cards require you to make a cash deposit before you can start using them. It’s worth saving up the deposit and using the card for a while, though, as you’ll usually be offered a normal card quite quickly, as long as you don’t do anything terrible with the secured one.
If that all sounds like too much trouble, then you might like to try a pre-paid credit card. These cards must be loaded with money in advance, but from then on work like a normal credit card – except you don’t pay any interest or fees! Well worth it if you only wanted a card for the convenience anyway.
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i dont see how you can get turned down… at least for me. i swear i get 3 or 4 credit card offers every week- its quite annoying!
Getting rejected for a credit card application always stinks. Another idea is going to a bank and seeing if you can start a low-limit card with cash as a collateral so you can build credit.
This is good to know as 3 years ago I was turned down for a credit card and it really upset me as I have NEVER had debt problems, and I have never tried again!! Maybe I will try now after reading your article. Thanks.
I agree, there are SOOO many companies out there who want you to hook on with them. Just be careful of the percentage rates and always try to get them lowered after some months of being a good debtor with them. Also, generally, repeated credit inquiries no longer impacts your credit score negatively.
WOW! Why are you not mentioning the HUGE fact that having multiple inquiries done on your credit report is terrible!?! Being denied a credit card does not mean try try try again, it means stop trying to live beyond your means, pay your bills, before you end up in debt for the rest of your life. Im sure this comment will not make it on to your blog, but telling someone to bang away at their credit report when they have been denied credit is probably the worst advice you can give them. Do you work for VISA?
try to get a lower limit credit card. most of the time you get turned down for applying a high limit which is not justified by your credit score.
I just want to say your header is amazing!
don’t worry. ima gonna keep trying!
With the current financial situation, people are not only being turned down for credit cards - but mortgages too.
You could also try getting a secured credit card or a pre-paid debit card, as a fallback.
I was wondering about prepaid credit cards. Since there is no credit check, its basically just a debit card right? and i know you can use them pretty much anywhere: retail stores, internet, over the phone, car dealerships, etc. you can use them to make payments but can you use them as a means of applying for further credit?
Looking at your credit background for any mistake they can have on you is something everyone should do!
Don’t understand the logic of applying for credit cards when you don’t have the means to service your expenditure. Just recently been trying to cut down the cards that I have, it’s a pain…seriously.
If you can’t get credit from a bank, why not use a peer-to-peer lending service like propser.com? The rates are likely to be better too unless you have excellent credit.
Also in response to one of the other comments, I think the extent to which multiple credit checks actually damages your credit score is usually overstated.
Don’t apply for multiple credit cards at once. If you get denied, order a copy of your credit report and get to the bottom of the situation — fix the dings before you reapply. Also, one of the comments mentioned something about receiving 3 to 4 credit card offers a week. These are not full-blown offers. They are pre-screened, meaning that if you accept their invitation, they will conduct what is referred to as a hard inquiry on your credit. Be careful about how many invitations you accept, because each one lowers your credit score.
I’ve applied to many credit cards over the years and have found that the credit limits, terms, and whether or not I’m accepted or rejected can vary a lot across card issuers. I don’t know what models they’re using to judge people, but it seems pretty random!
Yeah…. That’s remind me with my CC’s nightmare. I have experienced with my 7 cards that I can only solve the problems only for 2 cards.
Great articles… Keep posting.
If you are getting turned down for a credit card that means your credit does not qualify you. You should not even be applying for a credit card if that is the case. Just try working on paying cash for all your expenses and build a security nest egg.
You should mention that it is very difficult to get approved for a credit card if you are young and w/o credit history. I filled out for over 10-20 applications when I was about 16 or 17, but got denied for all. I had to apply for this “non-reputable” company with my dad as the co-signer to be able to get a card. After that card, everything started getting approved
-Mike
I would look at getting denied as a blessing. You won’t be a slave to a debt. Paying cash always causes you to think about what you are buying and prioritize what is important.
I Hate Credit Cards, I will celebrate if someone turn down my request
I can vouch that the multiple checks don’t do as much damage as some assume. If you were to have 25 or more checks in a 2-3 day period, that might be true but 2-5 is normal.
Does it look bad on your credit history if you are declined for a card? Especially three times, I don’t know how that will effect my credit rating or if it will even show up on my credit report, but I know personally it doesn’t look good. What about when I ask for a credit line increase and I get turned down, will that effect my credit in anyway?
I would agree with Joshua on this point. Bottom line is, you have to apply, and you can’t help if you get rejected. Credit card companies are interested in making money, and therefore interested in giving loans to people they believe they can make money off of. Getting rejected when you apply wouldn’t hurt your chances of being a cash cow, except to say that if you’re continually rejected by a few companies and you go to a new company, they may decide to accept you, but then think twice about it when they see that everyone else has rejected you.
You make such great points. If you don’t get approved for a certain card it is definitely a good idea to target a less prestigious card.
Thats what I did with Amex. I started with green and moved to Gold in 2 months.
I’m waiting for approval on my VISA card. Currently I’m using the debit Mastercard where you have to reload the card with money and could use it any Mastercard merchants around Malaysia. I wouldn’t allow people who are not qualified for a credit card to apply one. Should think more on how to earn more money and less shopping. Money isn’t everything. Qualifications for a credit card is there for a very good reason. To avoid ppl from heavy debts. Live the life you afford. Cheers!
I’m glad you mentioned NOT to apply TOO often. It will damage your report, so only apply for a credit card one at a time. And getting rejected is no fun. I’ve been there when I had no credit and I wasn’t a student, whom the companies just hand out credit cards to, nevermind their lack of finances.
WOW. . I am amazed at everyone who has not figured out that if its tough to get a credit card, more than likely you don’t need one. Credit Cards are for people with disposable income. What you’re looking for is a payday loan, which is just another evil beast to make sure you never really get ahead. If you can’t pay for it now, you can’t afford it. If you need one to leave a deposit, get a pre-paid card.
Okay, let’s all remember one thing… If you can’t get approved for a run-of-the-mill card it means you have a track record of not paying your bills (or at least of paying them late).
The best workaround? Get paid up and show a modicum of personal responsibility.
Yeah, I know… That’s long-range. In the short term, I recommend Visa/MC-branded debit cards and (if absolutely necessary for some reason) secured/prepaid options.
Cyn
I get annoyed by constant offer from my bank to apply for a new credit card. Once my friend get trapped for using one because he’s not wise. You have to be a wise man to use a credit card.
Companies usually don’t just turn down your credit card for no reason =) As long as you have the minimum annual pay then it’s fine. Just that if you have a bad history that’s another problem =/
I think that where I live for the moment there is a small chance t be tuned down. For the moment here everybody is fighting to give you credits and credit cards. You need to be careful to not get burried too deep in them.