Hey there, it's Joe Mahlow again, owner of ASAP Credit Repair. I wanted to share a story from my client, Sophia Rodriguez, who recently got denied a credit card. I know how frustrating that can be, so I'm here to give you some insider tips on why you might get rejected and how to fix it.
Sophia came to me feeling pretty down after that denial letter. But I told her - don't sweat it! There's a few key reasons you might not get approved, like bankruptcy, low credit score, or insufficient income. But the biggest factor is your credit history. They want to see responsible use of credit over time. I advised Sophia to check the disclosure from the credit card company to pinpoint the problem areas.
Here's the best part—I recommended Sophia get a secured credit card, where you put down a deposit that becomes your credit limit. Secured cards have much higher approval rates and help build your score fast. Even if you have bad credit, go the secured route! If you comment below, I can recommend a couple of good secured card options.
The point is a denial letter isn't the end. With a few tweaks to your credit, you can get approved and access the financial freedom you deserve. So, if you've been rejected, come on over, and let's get you back on track.
Contents:
- Why Was My Credit Card Application Denied?
- Check Your Credit Report and Score
- Consider Getting a Secured Credit Card
- Increase Your Income
- Improve Your Credit History
- Conclusion
Why Was My Credit Card Application Denied?
As the owner of ASAP Credit Repair, I've seen many clients get that dreaded denial letter in the mail after applying for a new credit card. If this just happened to you, don't worry - there are a few common reasons why credit card companies reject applications, and solutions to fix each one.
Your credit score isn't high enough
Most credit card companies have a minimum credit score requirement, often around 650-700, to qualify for their cards. If your score falls below this threshold, your application will likely get denied. The solution? Work on improving your score by paying down debt, checking for errors on your credit reports, and limiting new applications. Once your score is in the good range, reapply for that card.
Too much debt
High balances on your existing cards make you seem like a risk to lenders. They want to see that you can responsibly manage the debt you have before extending you more credit. Pay down your card balances to 30% or less of your limits before applying for a new card.
Short credit history
If you have little or no credit history, lenders don't have enough information to evaluate your risk. The fix is to start building credit by opening a secured card or becoming an authorized user on someone else's card. Use the card responsibly for at least 6-12 months, and then you'll have a better shot at getting approved for an unsecured card.
Too many recent applications
Applying for too many new cards in a short period of time can seem desperate and irresponsible to lenders. As a general rule, limit applications to no more than 2-3 new cards within 6 months. Give issuers time to see that you're managing new accounts well before asking for more credit.
By understanding why your application was denied and taking steps to remedy the issues, you can improve your chances of getting approved for that new credit card on your next try. Let me know if you have any other questions!
Check Your Credit Report and Score
When I first started building my business, I got rejected from several business credit cards. However, once I checked my personal credit report, the reasons became clear.
One client, Sophia, asked me, “What are the reasons behind the rejection, and what should I do next?" Like Sophia, you’ll want to check your credit report to understand the factors contributing to your denial. It could be:
You filed for bankruptcy recently. Most credit card companies want to see at least two years of clean credit history after bankruptcy before approving you.
Your credit score is too low. Typically, you’ll need a score of at least 650 to qualify for most credit cards. Below that, your options are limited.
Your income isn’t high enough. Credit card companies want to see that you make enough money to comfortably pay at least the minimum due each month.
You have a history of late or missed payments. Credit card companies view this as a sign you may not pay them on time either.
Your credit history is too new or limited. Without a proven track record of responsible credit use, you’re considered a riskier borrower.
As I told Sophia, the best path forward is to check your free annual credit report to identify any issues. Then, take steps to improve your score by paying down debt, limiting new applications, and using a secured card to establish a good payment pattern. Over 6-12 months, your score should improve enough to qualify for better cards.
Credit repair and financial freedom don’t happen overnight, but with patience and perseverance, you can achieve your goals. Stay positive, keep working at it each day, and don’t get discouraged if you experience setbacks. You’ve got this, and ASAP Credit Repair is here to help anytime you need guidance or support!
Consider Getting a Secured Credit Card
The reasons for rejection can vary, but a secured card is often the best solution.
You May Have Limited or Bad Credit
If you have a low credit score or a limited credit history, most credit card companies view you as too risky. A secured card allows you to borrow against your own deposit, so the bank is ensured they’ll get their money back. As you use the card responsibly by keeping low balances and paying on time, your credit improves. After about a year, you can typically upgrade to an unsecured card and get your deposit back.
Past Credit Issues
Have you filed for bankruptcy recently or defaulted on payments in the past? Credit card companies have long memories and may deny you as a result. A secured card gives you a fresh start. Use it well for a year, and these past mistakes won’t weigh as heavily against you. Several of my clients have been able to rebuild from bankruptcy and now enjoy excellent credit and financial opportunities.
One client, Jenny, made some poor choices in her early 20s and filed for bankruptcy at age 25. With my guidance, she opened a secured card, kept her spending low, and paid on time for 18 months. Her credit score improved over 200 points, and she qualified for an unsecured card with a $5,000 limit. Two years later, her score was over 700, and she was approved to buy a house. Secured cards changed her financial life.
If you’ve been denied a credit card, don’t lose hope. A secured card can be the first step to repairing and rebuilding your credit so you have access to more financial opportunities down the road. Check with your bank or credit union for secured card options, put down a deposit to open the account, use the card responsibly, and watch your credit start to improve within 6-12 months. You’ll be on your way to qualifying for better credit and achieving your financial goals.
Increase Your Income
The easiest way to get approved for a card? You have to increase your income. The hard truth is, if the bank doesn’t think you make enough money to pay them back, they likely won’t approve you.
One of the best ways to get approved for credit cards (and qualify for better terms) is to increase your income. I know, easier said than done, right? But here are a few tips to boost your income and open up more opportunities:
Ask for a raise at your current job. If you’ve been working hard and have taken on more responsibility, you’re probably due for an increase in pay. Do some research to determine the typical salary range for your position and make a case to your boss for why you deserve to be on the higher end of that range. Many of my clients have found success using this approach.
Develop skills that qualify you for a higher-paying job. Take additional courses or get certified in an area that will make you a strong candidate for better-paying work. For example, if you’re in an administrative role now, becoming proficient in software like Salesforce or HubSpot can open you up to higher-level marketing and sales positions.
Look for a side gig to generate extra income. Drive for a ridesharing service in your spare time, do freelance writing or graphic design, tutor students in your area of expertise, or find other ways to put your skills to use for extra money. Any additional income you can generate will help boost your qualifications for new credit.
Negotiate your bills to free up more money each month. Call your internet provider, insurance companies, and any other recurring bills you pay, and ask if they offer any promotions or ways for you to lower your payments. Freeing up even an extra $50 or $100 a month can make a big difference in your budget and allow you to pay off debt, spend on things you need, or put into savings.
By following these tips, you'll be in a better position to increase your income over time and qualify for the credit cards and accounts you want. Let me know if you have any other questions - I'm happy to help however I can!
Improve Your Credit History
As someone who has helped hundreds of clients repair their credit, I’ve seen the frustration of constant rejections. But don’t lose hope! There are steps you can take.
One of the biggest factors in a denial is simply not having enough credit history. “I’ve never had a credit card before, so I don’t have any credit," clients tell me. Well, you have to start somewhere! I always recommend applying for a secured card to build your history. You deposit an amount that becomes your limit, say $500, and you use the card responsibly by keeping balances low and paying on time. After 6-12 months, you’ll likely qualify for an unsecured card and get your deposit back.
Paying bills on time is the most important thing you can do. As one client, Sophia, told me, “I’ve been turned down for a credit card. What should I do next?" I told Sophia to check her credit report to look for any late payments. Even being 30 days late can hurt your score and cause a denial. Work on paying everything on time going forward, and you'll notice your score improving over the next few months.
If you have more significant credit issues like bankruptcy, it may take time to rebuild. But stay determined, start with a secured card, pay on time, and keep balances low. Check your score and reports regularly to monitor your progress. Little by little, you’ll strengthen your credit history and open the door to more opportunities. My company and I are here to help and support you through the process. You've got this! With time and dedication, you can achieve financial freedom.
Conclusion
Well, folks, that wraps up our chat about getting approved for credit cards when you've been rejected before. As your resident credit repair guru here at ASAP Credit Repair, I've seen it all. Take it from me and my clients' experiences - bad credit doesn't have to hold you back forever. Armed with the right tips, you can get back on track.
Remember, every rejection letter has a reason behind it. Don't get discouraged - get strategic. Target any issues through credit repair, and choose secured cards to start rebuilding your profile. With some time and elbow grease, anyone can transform their financial opportunities. Credit freedom awaits! Stay tuned for more insider tips from your-s truly. Until next time, dream big and take charge of your financial future. The sky's the limit when you take control of your credit.