What Is Credit Card Reconsideration?

Credit card applications can be denied for many reasons: an insufficient credit history, a low credit score, or too many card accounts opened too quickly, to name a few. If it happens, it’s probably not the outcome you were hoping for. The good news is that many credit card issuers will review the decision if you call their credit card reconsideration line. Doing so won’t guarantee a reversed decision, but it doesn’t hurt to try – particularly if you think there was an error on your application.

Credit card reconsideration is a process that occurs when an applicant requests that a card issuer reviews a rejected credit card application. Many credit card issuers allow for credit card reconsideration through online chat or a dedicated phone line, where a representative can review the rejected application, and you can make your case.

It’s not guaranteed that the denied application will be approved after a second look. A reversed decision may be more likely if the rejection happened due to a processing error or if you found (and fixed) a mistake on your credit report.

You might be wondering why a card application could get denied in the first place. Common reasons may include:

• Low credit scores. Card issuers have their own criteria for deciding whether to approve applications. One of those criteria is the applicant’s credit score. Generally speaking, the higher your credit score, the better your chances of credit card approval.

• Insufficient credit history. When the applicant has no credit history or has newly established credit, it’s hard for credit card issuers to determine their creditworthiness, or the likelihood that the applicant will be a reliable customer who makes regular payments.

• History of late payments. If late payments of 30 days or more appear on your credit report, this can lower your credit score and reduce the chances of getting an application approved.

• Insufficient income. Proof of income can help card issuers assess whether they think you’ll be able to pay the amount due every month. Having no income or very low income could suggest an inability to repay debts.

• High debt. Card issuers may see high amounts of debt as a sign that the cardmember won’t be able to keep up with monthly payments.

• Recent bankruptcy. Filing bankruptcy indicates that previous debts haven’t been paid and usually disqualifies an affected applicant from getting a new credit card until the bankruptcy has been discharged and the applicant’s financial situation has improved.

• Too many hard credit inquiries. Multiple hard inquiries in a short time – ones that aren’t associated with shopping around to explore different interest rates – can be a sign that applicants are unable to manage their finances without taking on debt. Hard inquiries can also decrease your credit score.

• Applicant mistakes. Applications may be denied if financial information is entered incorrectly. For example, incorrect income calculations or a typo can make or break an application.

Note that having just one or two of the above issues won’t automatically prevent you from being able to get a credit card. For example, if you’re a college student with little credit history and earn part-time income, you still may be able to get a credit card.

If you think there was a mistake on your application, or that you have additional financial information that could sway the initial decision, you may want to contact the credit card issuer’s reconsideration line or customer service department soon after receiving the application denial.

Be prepared to make your case, whether it’s correcting a typo, pointing out a credit report inaccuracy, or discussing another issue entirely. To do so, start by finding out why your application was denied. Under the Equal Credit Opportunity Act (ECOA), you have the right to find out why your application was rejected. The card issuer may tell you in writing, or you can inquire within 60 days of denial.¹

If you think a mistake was made – either when you filled out the application or in processing – revising the incorrect information may suffice.

If you called the credit card reconsideration line and nothing changed, or if you decide not to pursue reconsideration, yet still want a new credit card, you could consider the following options:

• Apply for a different card. Each issuer has its own criteria for approving an application, and some card issuers might even have different approval criteria for different cards. While you may not have met one card’s requirements, you might have better luck with another. Do take note, however, that quickly applying for multiple forms of credit can work against your credit history. It may be better to hold off. Some sources suggest waiting as long as six months.

• Reapply for the same card later. Taking the time to work on rectifying the reasons for application rejection – getting your credit score up, lowering your credit utilization ratio, building and maintaining a healthy credit history – could help you get approved should you decide to reapply for the same credit card in the future.