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Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. SHARE: nortonrsx/Getty Images July 01, 2022 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. Nicole Dieker has been a full-time freelance writer since 2012—and a personal finance enthusiast since 2004, when she graduated from college and, looking for financial guidance, found a battered copy of Your Money or Your Life at the public library. In addition to writing for Bankrate, her work has appeared on CreditCards.com, Vox, Lifehacker, Popular Science, The Penny Hoarder, The Simple Dollar and NBC News. Dieker spent five years as writer and editor for The Billfold, a personal finance blog where people had honest conversations about money. Dieker also teaches writing, freelancing and publishing classes and works one-on-one with authors as a developmental editor and copyeditor. Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Terms apply to the offers listed on this page. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Bankrate logo The Bankrate promise
At Bankrate, we have a mission to demystify the credit cards industry — regardless or where you are in your journey — and make it one you can navigate with confidence. Our team is full of a diverse range of experts from credit card pros to data analysts and, most importantly, people who shop for credit cards just like you. With this combination of expertise and perspectives, we keep close tabs on the credit card industry year-round to: Meet you wherever you are in your credit card journey to guide your information search and help you understand your options. Consistently provide up-to-date, reliable market information so you're well-equipped to make confident decisions. Reduce industry jargon so you get the clearest form of information possible, so you can make the right decision for you. At Bankrate, we focus on the points consumers care about most: rewards, welcome offers and bonuses, APR, and overall customer experience. Any issuers discussed on our site are vetted based on the value they provide to consumers at each of these levels. At each step of the way, we fact-check ourselves to prioritize accuracy so we can continue to be here for your every next. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Applying for a credit card is generally an easy process — but if your credit card application is denied, the entire situation becomes a lot more stressful. You might not understand why your credit request was declined, and you might not know how the credit denial will affect your credit score. You also might be wondering whether getting denied for a credit card will make it harder to apply for credit in the future. Why would you get denied for a credit card? Will a credit card denial hurt your credit score? Let’s take a look at how credit card denials affect your credit, why your application might have been declined and how to avoid credit card denial going forward. Reasons you can be denied a credit card
Lack of credit history
Your makes up 15 percent of your FICO credit score. If you don’t have much of a credit history yet, it might be hard to apply for new lines of credit — unless you choose a credit card specifically designed for people who have a . If you want to and become eligible for more credit options, consider opening up a secured credit card or becoming an authorized user. are designed for individuals with low to no credit because your credit limit is backed by a deposit. Becoming an is another great alternative to quickly build up your credit history because you are piggybacking on someone else’s credit. Building your credit takes time whether you are recovering from a few financial setbacks or starting from scratch. If you have existing lines of credit and you are having a hard time getting approved for a new credit card, work on keeping your low and paying your bills on time. Low or insufficient credit score
Most credit cards are designed for people within a . There are credit cards for people with bad credit, cards for people with fair or average credit, cards for people with good credit and cards for people with excellent credit. If your credit score isn’t high enough for the credit card you’re applying for, your application might be denied. If your credit card application is declined due to a low or insufficient credit score, you’re not alone. Before you apply for another credit card, so you know where exactly you fall within the FICO and VantageScore credit score ranges. Want to see if you pre-qualify without affecting your credit score? Check out our feature and get matched with a card that best fits your needs. Irresponsible card usage
Lenders like to see a history of responsible credit card usage before offering you new credit. If you’ve , for example, a lender might deny your credit card application. Your application might also be declined if you don’t pay your monthly credit card bills on time — or if you regularly . Errors on your credit report
In some cases, your credit card application might get declined not because of anything you did wrong, but because of an . This error could be as simple as an outdated address, or as complicated as a history of missed payments that actually belongs to someone with a similar name. This is why it’s important to review your credit reports regularly and . Does getting denied for a credit card hurt your credit score
A denied credit card application is likely to cause a slight drop in your credit score — but not because your credit request got declined. Credit bureaus don’t keep track of every declined credit request, and the only lines of credit that appear on your credit report are the ones that got accepted. However, the — Equifax, Experian and TransUnion — do keep track of the number of requested on your account. There are two kinds of credit inquiries: hard credit checks and soft credit checks. Soft credit inquiries, which often take place when you are applying for a job or going through the pre-approval process for a loan or credit card, do not affect your credit score. Hard credit inquiries, which take place before a lender makes a final decision on your credit application, are one of the . Every time there is a hard credit inquiry on your credit file, your credit score will drop by a few points. This happens whether your credit request is approved or declined. A single credit inquiry won’t tank your credit score, but multiple credit inquiries in a short period of time may suggest that you are a risky borrower — which is why new credit inquiries make up 10 percent of your credit score. How to improve your chances of approval
Review your Adverse Action Letter
The best way to learn why your credit card application was denied — and how you can prevent a credit card denial going forward — is to review your Adverse Action Notice. Credit card companies have 30 days to explain why your application was denied, though in most cases your letter will arrive much sooner. Your Adverse Action Notice might arrive via mail, email or both. Use the information provided in the letter to prevent future credit card denials. If you were denied due to a low credit score, for example, work on improving your credit score before your next credit card application. Request your credit report
If you haven’t reviewed your credit report in the last few months, it’s time to and scan it closely. Make sure all of the information, from your name and address to your history of credit card payments, is accurate. If you find errors on your credit report, dispute them as soon as possible. Equifax, Experian and TransUnion all offer easy online dispute forms to help you get the process started. Don t reapply right away
Although you might be tempted to reapply for credit right away, remember that within a short period of time can bring down your credit score — and potentially make it more difficult for you to acquire new lines of credit. Before you apply for a new credit card, look for a card that’s a good match for your current credit history and credit score. That way, your application will be . Take steps to improve your score or build credit
If you can improve your credit score or build your credit history before applying for a new credit card, you’ll be better off. The quickest way to improve your credit score is to practice responsible credit usage on your existing credit accounts. Make , pay off your balances in full whenever possible and avoid maxing out your credit cards. If you want to build your credit history, consider applying for a secured credit card. Secured cards provide you with a line of credit in exchange for a small, refundable security deposit. They’re also an excellent option for people who don’t yet meet the requirement for more premium credit cards. If you use your card responsibly, you’ll build your credit history and your credit score simultaneously — both of which will help you the next time you apply for credit. The bottom line
A credit card rejection may not necessarily affect your credit score, but the initial application does. Hard inquiries are inevitable when it comes to applying for new credit cards, but with time your score will recover. If you put a pause on applying for credit and take the necessary steps to improve your credit, your credit score should rebound in no time. SHARE: Nicole Dieker has been a full-time freelance writer since 2012—and a personal finance enthusiast since 2004, when she graduated from college and, looking for financial guidance, found a battered copy of Your Money or Your Life at the public library. In addition to writing for Bankrate, her work has appeared on CreditCards.com, Vox, Lifehacker, Popular Science, The Penny Hoarder, The Simple Dollar and NBC News. Dieker spent five years as writer and editor for The Billfold, a personal finance blog where people had honest conversations about money. Dieker also teaches writing, freelancing and publishing classes and works one-on-one with authors as a developmental editor and copyeditor. Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer. Related Articles