When you apply for a credit card it’s your hope that you receive an instant approval. Unfortunately, this may not be the end result. It’s always possible that you could receive a denial, thus forcing you to take a few key steps in the near future.
Here are five things to do if your credit card application is denied:
• Read your adverse action letter: the credit card issuer is required to send you an adverse action letter within 7 to 10 business days. This will explain the reason for your denial, thus giving you information on how to improve your financial situation for future success.
• Request a copy of your credit report: it’s possible your application was denied as the result of something on your credit report. You’ll want to review your credit report from start to finish, paying close attention to any inaccuracies.
• Review your credit score: your credit score, combined with your credit report, will give you a better idea of where your finances stand in an overall sense. A low credit score could be the primary reason for your denial. Of course, you need to find out why your score is low, which takes you back to your credit report.
• Implement a credit repair plan: you can’t expect your credit to repair itself. You must have a plan of action for making this happen, such as reducing your debt and paying all bills on time in the future. You have what it takes to repair your credit, you simply need to put your plan into action.
• Use a secured credit card: you may not qualify for an unsecured credit card, but most people, regardless of credit history or score, find that they qualify for a secured credit card. It requires a security deposit that acts as your credit limit and collateral. As long as your activity is reported to the three major credit bureaus, you can use a secured card to boost your score.
If your credit card application is denied, it’s critical to take these five steps. Doing so will improve your chance of an approval the next time around.