Ever apply for a credit card to score a great cash bonus or mileage offer, only to have your application denied? For some people, this may be the end of the road in getting their rewards, but for others, you can still take some quick and easy steps to nab that credit card.
If you are denied a credit card because you've made late payments on an existing card, or it looks like you've mismanaged your credit, then you're probably out of luck. However, two common reasons for a denial are 1) you've reached your maximum credit limit or 2) you've applied for too many cards over a short period of time. If your denial falls into either of these categories, you still have a shot at scoring that credit card.
Let's say you already have a credit card with a maximum credit limit of $10,000. Now that you're applying for a new card, the bank might not be comfortable extending more credit, based on your credit history, income, etc. An easy way to solve this problem is to call the bank's "reconsideration" number and ask for your credit limit to be divided, or shifted. You can request that your old card be lowered to a $7,000 limit (or whichever amount suits you), which gives you $3,000 in available credit for the new credit card you're applying for. It depends on the bank you're dealing with, but most banks (especially Chase) are willing to give you the new credit card once you have some available credit to put towards it.
If the problem is that you've applied for too many credit cards in the past, you can still call the bank's reconsideration number, and present your case for the new card. Be sure that you know your credit score and the details of your credit accounts (request your free yearly credit report), so that you can answer any questions from the bank rep during the phone call.
More importantly, emphasize that you want the card for its general benefits, not just for its cash bonus or mileage promotion. The bank is more likely to issue you the card if it thinks you're going to be a long-term customer, rather than just cashing in on the short-term bonus.
If you use the bank for something other than credit cards, bring that up politely during the phone call. A bank is more likely to reconsider for its profitable customers. Let them know that you've maintained a checking account or have a mortgage through that bank.
Although it doesn't work for everyone, many people are successful with the reconsideration process. Follow these steps, and you'll be much closer to reaping the rewards of that new credit card.
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