It can be hurtful to your credit profile when you applied for a credit card and it gets rejected. It will harm your credit health as its a hard inquiry on your credit report. It may be a disappointment for a while, but it is the right time to think about the next move. Before you move ahead, think about what are the things you can do to get the credit card that you really want.
Here we provide you with few tips to consider before re-applying after a credit card application is rejected
Take time before you re-apply for any credit card or loan
After you got rejected for a credit card it is important to know how long you need to wait for applying for a new credit card. It depends upon the reason why you denied to get a credit card.
The typical recommendation is that you should wait six months between credit card applications. If your credit card application rejected for too many hard inquiries it is good to wait at least six months before opting a new credit card. If you are rejected because of your lower credit score than you might need to wait until your credit score improve. This time depends on your positive credit activity.
Request Your AECB Credit Report
When your credit card application denied if you feel that you have a good enough credit score. This is the time you need to order for a credit report from AI Etihad credit bureau. Once you get a copy of your credit report you can dispute any errors that may have caused your credit card application to be denied.
After your credit report updated, update same to your credit card bank to review you can dispute any errors that may have caused your credit card application to be denied. You can as the bureau to automatically resend your credit report to concerned credit card issuer who reviewed it recently.
Review Your Credit Score Regularly
Once your credit card application denied the credit card issuers will be required to send the reason why your credit card application denied along with a free credit score. So this saves you from ordering a credit score report from a credit bureau, this free credit score report will help to list the factors affecting your credit score, e.g., too high balances or too few instalment accounts.
The adverse action letter along with credit score will give you a better idea where you have to improve your credit activity, by improving your credit score will ultimately increase your chances to get approved for a credit card.
Repair Your Credit Profile
Your credit card may be declined because of your poor credit. Unpaid collections, recent delinquencies, and high credit card balances are the things that decrease your creditworthiness so you need to fix them before you go for anew credit card.
Use your credit report as a reference while you repair our credit. you can improve your creditworthiness by managing your money to pay bills on time, minimizing the number of new credit applications, maintaining your credit utilization ratio low. You can dispute errors on your credit if you find any.
Apply for a secured credit card
A secured credit card is a great option for those who want to get out from there bad credit or no credit. This credit card works same as a normal credit card but this type of credit card required you to put some deposit as collateral, Getting a secured card will be easier for you which will get you back on your feet and also minimizes risk to the financial institution.
After you’ve made your payments on time for six to twelve months, some credit card issuers will convert your secured credit card to an unsecured one. Once you’ve converted your account, your security deposit will be returned to you.