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The denial of a credit card can be frustrating to a person who has a history of approval. However, despite the good record, a denial can happen as a result of various reasons. They include

  • Failure to fill the application forms properly
  • A decent credit history but too limited
  • Negative credit history and which is a public record
  • Very high credit card balances

Nonetheless, these reasons do not imply that all is lost. They should not affect your creditworthiness. Instead of wallowing in the rejection, it should be time to reevaluate and review a new way of representing yourself before the lender’s eyes.

What must you do if a credit card application is denied?

  • Find out why you are denied

There is always a reason for denial, and it comes in the form of a letter known as an Adverse Action Letter. It outlines the exact credit score used to give the denial as well as the details of the credit bureau, which provided your credit report leading to a no.

  • Understand the credit report

Keenly read through the report and ensure you understand it. This is because, more often than not, credit bureaus tend to make mistakes or state facts, which are not true or are a result of a clerical error.

  • Read your credit report thoroughly

You are entitled to a free copy of your credit score the sooner the application is denied. Carefully read through the report and the credit history and make notes where necessary. Through this, you will easily notice the areas which resulted in a denial.

  • Repair your credit and possibly reapply

You now know what you must do to reduce occasions of denial. Of importance is to lower your applications by waiting for a couple of months before applying again. Even though it is not stated how long you must wait, the reasonable time is at least six months.

Meanwhile, it is strongly recommended to look out for other credit options, which have simple and quick approval processes. They include secured credit cards and retail credit cards.