When you apply for a credit card and get denied, it can be damaging to your credit profile. Because it is a hard query on your credit report, it will affect your credit score. It may be discouraging for a while, but now is the time to consider the next step. Before you go any further, consider what you may do to obtain the credit card you truly desire.
We’ve put up a list of things to think about before reapplying after a credit card application has been denied.
Take your time before applying for a new credit card or loan
It’s crucial to know how long you’ll have to wait for a new credit card once you’ve been rejected for one. It all depends on why you were denied a credit card in the first place.
The standard advise is to wait six months before applying for a credit card. If your credit card application was turned down due to too many hard inquiries, you should wait at least six months before applying for another card. If your application is turned down due to a poor credit score, you may need to wait until your credit score improves. The length of time it takes is determined on your positive credit activity.
Request Your AECB Credit Report
If you believe you have a good enough credit score, yet your credit card application is declined. This is the moment to contact the AI Etihad credit bureau and request a credit report. You can dispute any errors that may have caused your credit card application to be declined once you obtain a copy of your credit report.
After you’ve updated your credit report, send it to your credit card company so they may analyze it and challenge any errors that may have led to your credit card application being denied. You can request that the bureau immediately submit your credit report to any credit card issuers who have recently reviewed it.
Review Your Credit Score Regularly
When your credit card application is declined, the credit card issuer is required to send you the reason for the denial, as well as a free credit score. This free credit score report can help you list the factors affecting your credit score, such as too high balances or too few instalment accounts, and will save you money on a credit score report from a credit bureau.
The adverse action letter, combined with your credit score, can help you understand where you need to improve your credit activity. Improving your credit score will improve your chances of being approved for a credit card.
Repair Your Credit Profile
Because of your bad credit, your credit card application may be denied. Unpaid collections, recent delinquencies, and high credit card balances all lower your creditworthiness, so you should address these issues before applying for a new credit card.
While repairing our credit, use your credit report as a guide. You may increase your creditworthiness by budgeting wisely, paying bills on time, limiting new credit applications, and keeping your credit use ratio low. If you uncover any inaccuracies on your credit report, you can dispute them.
Apply for a secured credit card
A secured credit card is a great option for those who want to get out from there bad credit or no credit. This credit card works same as a normal credit card but this type of credit card required you to put some deposit as collateral, Getting a secured card will be easier for you which will get you back on your feet and also minimizes risk to the financial institution.
After you’ve made your payments on time for six to twelve months, some credit card issuers will convert your secured credit card to an unsecured one. Once you’ve converted your account, your security deposit will be returned to you.
Are you planning to apply for a credit card anytime soon? Submit the below form and get a call from one of our credit card specialist.
