![]() ![]() There are a number of reasons you may have been denied a new card, even if you're credit score is high: You might have too much credit with that bank or the bank may have a limit on the number of accounts they'll issue one customer. Note that some issuers might require you to send proof of income, your social security information and your address to verify your identity and information. You can also try to negotiate approval by calling the card issuer and speaking to a customer service representative. Starting at seven months from account opening, Discover will automatically examine the cardholder's account to determine if they're eligible to switch to an unsecured card. The Discover it® Secured Credit Card is one such option, requiring a security deposit of $200. A secured credit card requires that cardholders put down a deposit, which acts as collateral if they're ever unable to make payments. If your credit history is too short or you have a poor credit score, you may want to consider applying for a secured credit card. Remember, you can always work on improving your credit score by making payments on time and in full. Sites like Select provide information about what types of credit scores you need to be eligible for certain cards, so you'll want to do your research before applying for another one. You may be rejected for a variety of factors, such as having a low income, a short credit history or too much credit card debt.Īfter receiving notice about why you were rejected, you'll want to focus on improving your credit score or finding new credit options, explains Matt Schulz, chief credit analyst at LendingTree. This is known as an adverse action letter. ![]() ![]() Under the Equal Credit Opportunity Act, creditors have 60 days to provide you with a specific reason as to why you were denied a line of credit. Since each application results in an additional hard inquiry on your credit report, this could indicate to lenders that you're a potentially risky borrower. If you're actively seeking a new credit card, you might want to avoid applying for multiple cards at once. Note that new inquiries only account for 10% of the new credit category of your credit score, and regardless of whether you're approved or denied for a credit card, the hard inquiry itself will appear on your report. While a hard inquiry will stay on your credit report for two years, FICO only includes them in the calculation of your credit score for up to one year. According to FICO, a hard inquiry can knock your credit score down about five points. When you apply for a credit card, issuers examine your creditworthiness by performing a hard inquiry into your credit score, or, in other words, by pulling your credit report from one of the three credit bureaus, Experian, Equifax or TransUnion. ![]()
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