What happens if Iâ€^™m declined?

If you get declined by a credit card, it could be an implication that something went wrong with your credit report. However, it is not the end of the world. Card issuers can reconsider one’s application. At the same time, you can do many things to avoid credit card application denial in the future. 

Can it hurt my credit score?

If you are declined by your credit card, the denial does not have a direct impact on your credit score. However, every time you apply for a credit card, a hard inquiry will be shown on your credit report. Although one hard inquiry will not have a huge effect on your credit report, many hard inquiries will sum up to a more significant impact. 

Why does a credit card deny me in the first place?

There are many reasons that a credit card denies applicants. The first reason is that maybe you have too much debt. If you have a very high debt-to-credit ratio, banks can see that as a sign of you having too much debt and not being able to pay them back. The second reason is that when you apply for multiple credit cards in a short period, which is also a sign of you struggling with your financial issues. Last but not least, it might have to do with your credit score and credit report. If you miss your credit card payments recently, it will damage your credit score and provide more reasons for banks to deny your applications.

What should I do if you get denied?

If your application did not go through, you are able to reach out to one professional from the card issuer and ask the company to reconsider your application. In addition, you have the opportunity to provide any new information such as other sources of income. However, if the applications still go unsuccessfully, you should take a closer look at your credit history and report.

What should I do if I have a bad credit score?

Even though a bad credit score prevents you from applying for many credit cards, there are still many cards available for this specific situation such as many secured cards. These cards are able to help you manage your spendings and improve your credit score. By decreasing your debt and making your credit card payment on time, you can soon build your credit and apply for better cards.

In conclusion, there are plenty of things you can do even if you get declined by card issuers. While one denial will not have a significant impact on your credit score, applicants can choose other alternative credit cards to improve their credit score, which increases the chance you apply for better credit cards in the future.