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Getting rejected for a credit card might feel like failing a test, but it typically just means your income and credit history don’t match the criteria for the card you applied for. If this happens to you, rest assured you're not alone—approximately 15% of credit card applications are declined, according to the latest data from the Federal Reserve Bank of New York. Here are some steps you can take to successfully secure that new card.
Understand Why Your Application Was Rejected
The first thing to do is review the rejection notice you receive. By law, credit card issuers are required to provide a reason for rejecting your application. This 'adverse action notice' should arrive within 7-10 days from the card issuer.
The most frequent reasons for rejection include:
poor or limited credit history
insufficient income
delinquencies or unpaid debts
too many credit cards
bankruptcies or foreclosures
employment record
being between the ages of 18 and 21
Examine your credit history
If your rejection was due to your credit score, you are entitled to request a free copy of the credit report the lender used within 60 days. Carefully review the report for any inaccuracies. If you suspect your rejection was based on an error, you can dispute the findings with the credit bureau.
Check if your application can be reconsidered
If you're working with a major lender, you can call their reconsideration line, where a representative might be able to reconsider your rejection. There's no certainty, but if you present yourself as a responsible future customer, they may be persuaded. Maybe. If this doesn't work, your next step is to focus on improving your credit score.
Boosting your credit score
The quickest way to raise your credit score is by reducing the debt on your current credit accounts. Make sure you pay on time, lower your balances, and avoid maxing out your credit cards (keeping under 30% of your total credit limit is ideal). If you're struggling to pay off a balance, consider transferring your balance to an 0% APR card to halt interest accrual while you work on clearing your debts.
If your credit history is limited, there are other ways to build credit, such as asking your landlord to report your rent payments or becoming an authorized user on an existing account (many young people, for example, 'piggyback' on their parents' credit).
And sometimes, patience is key. 'Hard inquiries'—the ones made when you apply for new credit—stay on your report for two years, and having more than five at once can harm your credit score. Creditors tend to be wary if you open too many credit cards simultaneously.
Choose credit cards that suit your needs
Getting denied for one credit card doesn’t mean you can’t apply for other cards. Once you know your credit score, whether from your rejection letter or by checking it directly through the credit bureaus, you can search for cards tailored to your score range. High-tier cards like the Chase Sapphire Reserve or Capital One Venture might be out of reach until your income grows or your credit score reaches the 'excellent' tier (above 720). Most people fall into the 'Good' (690–719) or 'Fair' (630–689) categories. In these ranges, you can still find many cards, though they tend to have lower credit limits ($1,500 to $5,000), higher APRs (over 22%), and fewer perks compared to top-tier cards. On the bright side, many of these cards don't charge annual fees.
If your credit score is below 629, you may want to consider a secured credit card. While it may not feel like a traditional credit card (since it requires a deposit equal to your credit limit), using this card is an important step towards rebuilding your credit score, which can take at least six months. Good options include the Capital One Secured Mastercard, Credit One Bank Visa, Discover It Secured, and Open Sky Secured Visa.
If you’re rejected for a credit card, take a step back, evaluate the situation, and work on rebuilding. It might take some time, but with a solid plan and commitment, you’ll eventually get the credit score—and the card—you’re aiming for. This post has been updated with the latest data and insights.
