What Happens If Your Credit Card Application Is Denied
By itself a denied credit card application wont have a significant effect on your credit scoresbut thats not the whole story. Being denied a credit card or other type of credit doesnt affect your score because its not reflected in your credit report.
Every time you apply for a credit card there will be a hard credit pull on your report.
What happens if your credit card application is denied. Incase if your credit lender or bank doesnt provide you with any reasons for denial of credit card application then you may get yourself a credit report and have a look into it of what went wrong. That wraps up some common reasons you might be declined for a new credit card even though youve got good credit. Legally youre entitled to a free copy of your report from the credit bureau that furnished the information used in your credit approval decision.
When your credit card application is denied because of information on your credit report youll have 60 days to request a free copy of the credit report used in the decision. What should I do if my credit card application is rejected. However you have to actively request your credit report within 60 days of your denial.
After youre declined youll get a letter or an email stating some vague reasons your application was rejected. First a hard inquiry causes a drop in your credit score so banks might find that your score is too low for the credit card you want. However a hard inquiry triggered by a credit application can temporarily lower your score by a few points regardless of the result.
Getting denied for a credit card does not affect your credit so you dont have to worry about that. First try to find out why your application was denied. Credit card issuers rarely tell you on the spot that your credit card application was denied.
The credit bureaus will not provide you with a credit report unless you request it. 1Review your personal and business credit reports The Fair Credit Reporting Act allows you to request a free copy of your credit report if youve been denied credit. Instead they send a letter an adverse action letter within 7-10 business days of your application that gives more details about the decision.
It could have been due to many factors including your credit score credit history income or employment status. When you are denied credit the lender is required by law to send you an adverse action letter explaining why. To get your credit report you must submit a written request to the credit bureau that furnished the information a.
Dont apply too soon after being rejected. There are several things you can do to make sure. But if your credit card application is denied that uncomfortable feeling of rejection may be laced with some other unpleasant emotions as well namely worries about your credit scores.
Getting rejected for a credit card is by no means the end of the world. Or some creditors may have unique rules that lead to the denial. The adverse action letter will give you the specific reason or reasons your credit card application was denied.
To banks this could mean two things. There are numerous reasons when a credit card application gets denied. Perhaps youve heard that a credit card denial will hurt your credit scores.
Its frustrating but a credit app decline isnt the end of the world. Here are some of them. Every time you apply for any type of new credit it results in what is called a hard inquiry on your credit report.
However you might see a slight drop in your credit score due to the hard credit inquiry. Your credit card company should mail you a letter. Federal law requires the credit bureaus to provide a free credit report for anyone that was declined for credit.
The rejection shows up on your credit report now but it will have less of. If youd like to view your credit reports from the other bureaus youll have to order them separately. Rejection never feels good.
