When you are declined for a credit card
It’s going to Happen
At some point, a declined credit card application is coming for you. You have to do all you can to not take it personally, as it will happen to all of us in the points and miles game, and it can be for a myriad of reasons: you’ve opened too many cards recently, you don’t have a ton of credit history, your credit score needs to improve a bit, the credit card issuer has given you the maximum amount of credit that they feel comfortable with, or even something as simple as the fact that you recently moved and they can’t confirm your address! Stay calm, and take action!
Now, when you do get declined for a credit card, you have a few options:
You can move on to another application right away, applying for another card that you have been considering.
You can allow some time to go by before you apply for a new card, taking it as a sign that you need to build up more credit history or “cool off” on your applications, if you’ve been applying for a lot of cards recently.
You could embrace an advanced strategy called a reconsideration call.
A Reconsideration Call
A reconsideration call is when you call the credit card issuer and ask them to reconsider their credit decision, after a declined credit card application. It’s an appeal, of sorts.
The first step you need to take is find the correct phone number to call. Since these numbers do change from time to time, I would recommend simply Googling to find the number (i.e. “Chase Personal Cards reconsideration phone number.”) Call the number and ask to speak to someone about reconsidering your credit card decision, if a credit analyst is not immediately who answers the phone.
After the bank verifies some of your basic application information to ensure your identity, now is your time to shine! This is where the call becomes almost a sales call of why they should reconsider you for the card that you applied for. Your main goal is to give them a few compelling reasons why you should have this card!
Now, before we go into a few examples of compelling reasons that you could give, there is one that you should NEVER give to an analyst: “I really want this card for the sign-up bonus.” This positions yourself in a way that you are likely going to be a poor customer for the issuer (“churning” the card, earning the sign-up bonus and moving on). Aim to show them how you plan to take advantage of the benefits of the card, besides the sign-up bonus, instead. Show that you are educated on the card, why you want it, and how it fits into your financial life.
Compelling reasons to give to help them reconsider your Application
When calling the credit card reconsideration line after being declined for a credit card, you'll want to present your case persuasively and address any concerns the issuer may have had. Here's a potential script to help you make your case and share a few compelling reasons why they should reconsider your application:
Financial Stability: "My financial situation has improved since I initially applied. [Provide any relevant details, such as increased income, improved credit score, or reduced debt]."
Highlight Positive Points: "I've been a loyal customer with [Credit Card Company Name] for [mention how many years]. I've consistently managed my accounts responsibly, and I have a strong track record of making on-time payments."
Reason for Applying: "I was particularly interested in [mention the benefits or features of the credit card that attracted you, like category bonuses, credits, travel protections, annual free night certificate, etc.], and I believe this card would be a valuable addition to my financial portfolio.”
Being an authorized user pushed you over Chase’s 5/24 rule: If you applied for a Chase credit card, and you have opened more than 5 personal credit cards in the past 24 months, you likely were declined due to their 5/24 rule. However, if one of those was actually a card that you were an authorized user, you can say something like, “I just realized that one of my credit cards is an authorized user card. I am hoping you can verify that information so we can remove it from my report. I also would not mind closing this card if it increases the likelihood that my application will be approved.”
Share an openness to move credit around: One of the most common reasons individuals are denied for a card is because the issuer has extended the amount of credit to a cardholder that they are comfortable with. If this is the reason for application denial given by the analyst, you can say something like, “I am wondering if you can check if it is an option for us to move some of my credit line from one of my other cards to this new card so I can be approved for this application.”
Separate business and personal expenses: If you are denied for a business credit card, you might need to explain why you are wanting the card. You could say something like, “I would really like to have a business card so I can keep my business purchases separate. Right now, I am using my personal card for all of my business-related expenses, which causes some difficulties with bookkeeping. For this reason, I am hoping that you can reconsider my application again.”
Offer Additional Information: "If there's any additional information you need from me to reassess my application, I'm more than willing to provide it. This card aligns well with my financial goals, and I'm committed to using it responsibly."
After you state your Case
After you state your case, they will likely put you on hold for awhile as they process the reconsideration. Then, they will come back online and either tell you: “We have approved you. You will be receiving the card in the mail in the next 5 to 7 business days.” or “Please give us a few days to further review your application” or “Unfortunately, even after reconsideration, we are unable to approve you for this card.”
If it’s a yes, congrats! It was probably a bit scary the first time you did it (at least if you are a Millenial like me!), but it was worth it!
However, if they say that you are still declined, politely thank them for their time, hang up and pull a HUCA. (HUCA = “Hang up, and call again!”) Do this immediately! You don’t need to wait a day or a month. No, do it in a matter of seconds! Call the same number and repeat the process again. I know this sounds bizarre, but despite the credit card’s issuers desire that their customer service agents provide consistent service and make consistent decisions, it’s just not even close to being the case. I would recommend you doing it a minimum of 4 total times before you fully give up. I know some who have called back as many as ten times and have been approved on the tenth call! Obviously, approval is not guaranteed. However, the biggest point here is that the answer you receive the first time is not necessarily the final answer!
The most important piece
More important than what you say during reconsideration calls, is how you say it! The key to a successful reconsideration call is to remain polite, patient, and to focus on addressing any concerns the issuer might have had, while staying calm. Don’t take a credit card application personally! Capital One has been known to deny credit card applicants who have credit scores over 800, because they are nervous that they will be too good of customers (i.e. they are less likely to receive late payments and interest fees from them!)
Simply, be prepared to discuss your financial situation, emphasize your positive attributes as a customer, convey your sincere interest in becoming a cardholder and never forget it’s a human on the other side of the line!
Although this process will feel a bit intimidating the first couple of times you do it, it will eventually feel like any other customer service call that you make. Good luck!
