credit card application rejection letter

WTO / Letters and Emails / Rejection / How to Write Credit Denial Letter (Samples & Templates)

How to Write Credit Denial Letter (Samples & Templates)

A credit denial letter is an official notification written by lenders to inform an individual or business of the rejection of their loan request.

It is usually sent for applications for loans , mortgages, credit cards, and business credit lines. It also informs the applicant why their application was rejected.

Typically, lenders will deny loan requests if the applicants are not creditworthy, which can result from multiple factors such as incomplete documents, insufficient income, bankruptcy, poor credit score, etc. The letter also communicates the applicant’s credit score, the credit reporting agency used, and the process to obtain their credit report.

Lenders can use templates that include all the information required to produce the formal letters. It is important to note that lenders are expected to reassess their decision to decline an application should the applicant object to it. They should also cite legitimate reasons, such as errors and inaccuracies in the report. Review multiple samples of such letters to understand the different reasons a lender can use to legally deny credit to their clients.

The letter is a legal requirement under the ECOA and the Fair Credit Reporting Act. It provides information to the borrower, protects the lender’s reputation, and complies with legal requirements. Also, it is professional to be transparent about the decision-making process. Online templates are practical tools that can help lenders write such letters.

This article will discuss reasons to reject credit applications and how to write a letter notifying the applicant of such a decision by providing a sample. It also educates lenders on certain legal factors they should know before sending a letter of denial to a credit application.

Reasons for Denying a Credit Request

Letters to notify applicants of refusals of their credit requests serve a valuable purpose by providing individuals with insights into the factors considered by lenders when assessing creditworthiness. By exploring the common reasons for credit denial, we can understand the criteria that financial institutions use to evaluate applicants, empowering individuals to make informed decisions and take proactive steps toward improving their credit standing.

This section discusses the key factors that can influence a credit denial decision:

Credit score

A credit score is a measure or numerical ranking of creditworthiness. Using a standardized formula, you can calculate it from credit information such as length of credit history, payment patterns, credit utilization, and outstanding debt. The higher scores indicate a lower level of risk, making it more likely for such applicants to secure loans at favorable terms. On the other hand, the lower scores may result in credit denial or less favorable loan terms, as they suggest a higher risk of defaulting on payments.

Employment history

Employment status and history are criteria used to determine an applicant’s suitability for loans because they determine their capacity to pay back the loan. So, you need to consider whether an applicant is employed, how long they have been employed, and their current and previous jobs. Having a stable job and career may indicate that they have a reliable source of income and are less likely to default. However, if their employment situation is unstable, it raises concerns about their ability to fulfill financial obligations and is a legitimate basis for refusing their loan request.

Insufficient income

One crucial factor that lending institutions carefully scrutinize when assessing loan applications is the applicant’s income. For lenders, the ability of borrowers to repay their debts is of paramount importance to mitigate the risk of defaults. Therefore, income serves as a critical indicator of an individual’s capacity to meet their financial obligations. When an applicant’s income is deemed insufficient, it can be a compelling reason for denial.

Debt-to-income ratio

The debt-to-income ratio compares an individual’s monthly debt payments to their income. If the ratio is too high, it indicates that a significant portion of income is already allocated towards existing debts, and lenders may perceive the applicant as having a higher credit risk and reject the loan request.

Payment history

Payment history is a reliable criterion for determining an applicant’s eligibility for a loan. If an applicant has a history of late payments or defaults with a specific financial institution, it can significantly impact their chances of getting approved for new credit from that institution.

Unstable housing situation

Lenders might have a negative opinion of housing instability, such as frequent moves or a lack of a permanent address. It can be an indicator of financial uncertainty and affect an applicant’s creditworthiness.

Inaccurate information on a credit report

You can reject an application if the credit report results are inaccurate. The report will indicate the borrowing history, current and previous addresses, bank accounts, employment history, etc. Incorrect information, such as accounts that do not belong to the applicant or inaccurate payment records, can be particularly detrimental.

The accuracy and reliability of this information are of utmost importance in determining an applicant’s creditworthiness. Unfortunately, mistakes or inaccuracies in the reports can occur, and they have the potential to significantly impact an individual’s credit standing. From a lender’s perspective, such errors pose risks and can be a valid reason for credit denial.

Multiple loan applications

You can deny credit to individuals or businesses that have applied too many times in a short period. This will often indicate that the applicant is struggling financially and in desperate need of money, which poses a risk of inability to repay once approved.

How to Write a Letter to Notify Rejection of Credit Application

Most applicants will be distressed by the news, so it is critical to approach the rejection professionally. Your communication must be objective and clearly explain the situation. Using a template can be helpful in properly organizing information and ensuring the decision is effectively conveyed to the client.

The information required in a letter to formally notify applicants that they are ineligible for credit is presented below:

Specify the date

The first element on the letter is the date it was written or issued. The date is needed for reference and filing purposes. A proper format should be used,

March 24, 2023.

Include borrower’s information

Secondly, it must be clear to whom the letter is addressed, i.e., the applicant. Your letter must have the borrower’s name, mailing address, account number, and application ID.

For example, this information can be presented as follows:

Jack Geller 103 City Park Road, New York City, NY 8007 Account No.: 1234 4567 7890 Application ID: JG009282NY

A subject line indicating the purpose of the letter can be included if you are sending an email. For example, RE: Credit Denial Letter for Application ID-2363. This should be followed by a formal greeting such as Dear Mr. Schumacher.

Mention the reason for the denial

Next, indicate the letter’s purpose for rejecting the application and provide a valid reason. You can begin by acknowledging the borrower’s interest in the opening statement before stating that their application is being rejected.

“Thank you for your inquiry about a credit card with B&G Platinum. We are honored by your interest in our company and our services. Unfortunately, we regret to notify you that your application was declined as your debt-to-income ratio is too high and a principal concern for our team.”

Provide credit reporting agency information

Lenders are usually obligated to inform applicants about the credit reporting agency (or agencies) they use to assess their creditworthiness. This section provides details of the agency’s name, contact information, and instructions on how to obtain a free copy of the report for further review. Note that while this information is necessary for a consumer credit application , it is not needed for a commercial application. This is because, in such situations, it is not a requirement of the FCRA.

For example, this section can be written as follows:

“After a thorough search, we determined that your total debt is above $150,000. When compared to your assets, this amount indicates that you have a credit score of 450, which is lower than the 650 required for eligible candidates.”

Specify the adverse action reasons

The letter should include a section detailing the specific adverse action reasons, which are the key factors that contributed to the denial decision.

To comply with regulatory requirements, for example:

“The decision was based specifically on the key adverse action reasons that influenced our decision: a poor credit history and insufficient income.”

Right to obtain a free report

Lenders typically highlight the recipient’s right to access a free copy of their report within a specified timeframe. This provision allows individuals to review the report for inaccuracies or discrepancies that may have impacted the credit decision.

“We understand that credit denial can be disappointing, and we encourage you to review your credit report, which you can obtain free of charge from [credit reporting agency’s name], to ensure its accuracy and address any areas that may require improvement.”

Your contact information

The letter for denial should be concluded by providing your contact information, including your name and contact details such as phone number, email address, and mailing address. This information is meant to facilitate future correspondence if the borrower has questions about the denial or future applications.

Charles MajorsJenkins Micro-Finance CompanyDownhill AvenueAugusta, Maine [email protected] (0288) 3630-8999

This infographic is about do's and don'ts for writing credit denial letter.

Free Templates

To simplify the writing process, you can use the free downloadable templates for these letters provided in this article. They can be customized to suit your needs and preferences. Also, they are professionally designed to create legible and presentable letters that protect a financial institution’s reputation.

Free Credit Request Denial Letter Sample 01 for Word File

Credit Denial Letter Template

[Your Company Name]

[Your Company Address Line 1]

[Address Line 2]

[City, State, Zip Code]

[Phone Number]

[Email Address]

[Today’s Date]

[Applicant’s Name]

[Applicant’s Address Line 1]

Dear [Applicant’s Name],

Thank you for your interest in [Credit Product/Service, e.g., credit card, loan, etc.] with [Your Company Name]. We appreciate the opportunity to review your application. After careful consideration, we regret to inform you that we are unable to approve your request at this time.

The decision to decline your application was based on the following reason(s):

[Reason for denial, e.g., credit score below our minimum requirement, insufficient income, employment history, etc.]
[Any additional reason(s)]

In accordance with the Fair Credit Reporting Act, you have the right to a free copy of the credit report used in our decision-making process. To obtain your report, please contact the credit reporting agency listed below within 60 days of receiving this notice:

Credit Reporting Agency Information:

[Agency Name]

[Agency Address]

[Agency Phone Number]

[Agency Website]

Furthermore, you have the right to dispute the accuracy or completeness of any information in your credit report. If you have any questions or believe this decision is based on incorrect information, please do not hesitate to contact us at [Your Phone Number] or [Your Email Address].

We understand that this may be disappointing news, and we encourage you to review your credit report and financial situation. Improving certain factors may increase your eligibility for [Credit Product/Service] in the future. For any questions about improving your creditworthiness or to discuss potential options moving forward, please feel free to reach out to our customer service team.

Thank you again for considering [Your Company Name] for your financial needs. We hope to have the opportunity to serve you under different circumstances in the future.

[Your Name]

[Your Title]

Sample Credit Denial Letter

Dear Mr. Doe,

Thank you for applying for the Sunset Credit Card with Sunset Bank. We value your interest in our products and services and appreciate the opportunity to review your application.

After a thorough review of your application and credit information, we regret to inform you that we are unable to approve your request for credit at this time. The decision is based on the following primary reason(s):

Credit Score Below Minimum Requirement: Your current credit score of 620 falls below our minimum requirement for the Sunset Credit Card, which is set at 650. Our decision was influenced by the credit report obtained from Equifax, one of the leading credit reporting agencies.
High Utilization of Existing Credit Lines: Our review also noted a high utilization rate on your existing credit lines, which is another factor in our decision-making process.

In accordance with the Fair Credit Reporting Act, you are entitled to a free copy of your credit report from Equifax, used in our decision-making process, if you request it within 60 days of receiving this letter. To obtain your report, please contact:

P.O. Box 740241

Atlanta, GA 30374-0241

Phone: 1-800-685-1111

Website: www.equifax.com

You also have the right to dispute any inaccuracies in the information provided by the credit reporting agency.

We encourage you to review your credit report and address the factors that have affected our decision. Improving your credit score and lowering your credit utilization may enhance your eligibility for credit in the future.

Please understand that this decision does not diminish the value we place on your interest in our services. We would be happy to review another application from you in the future, should your financial situation change.

If you have any questions or require further clarification, please do not hesitate to contact our customer service team at (555) 890-1234 or via email at [email protected].

Thank you again for considering Sunset Bank for your credit needs. We hope to have the opportunity to serve you in the future.

Credit Manager

Sunset Bank

Key Takeaways

This rejection letter from Sunset Bank regarding the credit card application is a well-structured and considerate communication. Here’s why it’s effective:

Gratitude and Politeness: The letter starts with a courteous tone, expressing gratitude for the applicant’s interest in the bank’s services, which sets a positive tone despite the disappointing news.

Clear Explanation: It provides a clear explanation for the decision, citing specific reasons such as the credit score falling below the minimum requirement and high utilization of existing credit lines. This transparency helps the applicant understand the basis of the decision.

Reference to Rights: By mentioning the Fair Credit Reporting Act, it informs the applicant of their rights to access their credit report and dispute any inaccuracies, demonstrating the bank’s commitment to regulatory compliance and consumer rights.

Encouragement for Improvement: Despite the rejection, the letter encourages the applicant to take steps to improve their creditworthiness, indicating a willingness to consider future applications if their financial situation improves. This supportive approach maintains a positive relationship with the applicant.

Openness to Future Applications: It leaves the door open for future interactions by expressing a willingness to consider another application in the future, fostering goodwill and preserving the possibility of a future relationship with the bank.

Clear Contact Information: The letter provides clear contact information for the bank’s customer service team, allowing the applicant to seek further clarification or assistance if needed, which enhances accessibility and customer support.

Closing Appreciation: It ends with a sincere expression of appreciation for the applicant’s consideration of the bank’s services, reinforcing the bank’s commitment to customer service and leaving a positive final impression.

In summary, this rejection letter effectively communicates the decision while maintaining professionalism, transparency, and a customer-centric approach, which are crucial for preserving the bank’s reputation and fostering goodwill with the applicant.

Legal Requirements for Credit Denial Letters

As previously stated, it is legally necessary for you to notify the applicant in writing of the reasons for the application’s denial.

These include:

Fair Credit Reporting Act (FCRA): FCRA mandates you to notify applicants of any information, such as credit scores and reports, used as a basis for credit refusal. Also, it gives the applicant the right to reevaluate the credit report and appeal the decision if any inaccuracies are identified. According to the FCRA, borrowers should request the credit report within 60 days of being notified of the refusal.
Equal Credit Opportunity Act (ECOA): ECOA prohibits discriminating against applicants based on race, gender, age, religion, marital status, or receipt of public assistance.
Truth in Lending Act (TILA): TILA promotes transparency in lending. It requires the lenders to disclose the terms, credit terms, costs, and fees to consumers. Even though TILA regulations may not directly control credit refusal, lenders are nevertheless required to abide by other TILA provisions when providing credit to customers.
State-Specific Regulations: Each state may have additional laws or regulations that govern the content and delivery of credit refusal letters. Lenders must familiarize themselves with state-specific requirements to ensure compliance.

You can deny credit applications as long as you have valid and lawful reasons. However, you must issue a letter to explain with clarity the reasons for the refusal. Compliance with legal requirements, such as the Fair Credit Reporting Act and Equal Credit Opportunity Act, is crucial to avoid legal issues and maintain ethical lending practices. By understanding the importance of effective communication and adherence to regulations, lenders can ensure fair treatment of applicants while protecting their institution’s reputation. The most common reasons for credit denial are a high debt-to-income ratio, a poor credit score, and a poor payment history. You can use templates to save time and effort when writing this type of letter. Consider reviewing sample letters of this type to learn the proper format and language to use when writing one.

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Why can’t I get approved for a credit card?

April 18, 2024 | 9 min read

Being denied a credit card can be disappointing. But the good news is you don’t have to guess why your application was denied. That’s because lenders are required to provide the reasons they rejected your application or tell you that you have the right to find out why.

Keep reading to learn more and what you can do to improve your creditworthiness.

Key takeaways

Lenders are required to provide an adverse action notice as to why your credit card application was denied.
Even if your application is denied, you can help improve your credit over time by doing things like paying your bills on time.
It’s a good idea to consider eligibility requirements for the credit card you’re considering. And if you’re new to credit, you might want to look at cards designed for people who are building credit.
If you apply for too many credit cards in a short amount of time, it could affect your credit scores. But by getting pre-approved, you could see what cards you may be eligible for without hurting your credit.

See if you’re pre-approved

10 possible reasons why your credit card application was denied.

If your credit card application was denied, lenders are required by law to send you an adverse action notice within 30 days of receiving your application, telling you why it was denied. But if you haven’t received your letter yet, here are 10 reasons why credit card applications get denied. And if you think any of these apply to you, there are also ideas for what might help you to improve your credit.

1. You have low credit scores

When you apply for a credit card, the issuer may check your credit reports and scores to see how you’ve managed debt in the past. Requirements vary depending on the issuer and the card. But higher credit scores and a good credit history might help you qualify for a credit card.

What you can do: Different factors affect your credit scores . You’ll read about some of the specifics below. But in general, using the credit you have responsibly is one way to improve your scores . That means doing things like paying your statement on time every month. If you haven’t established credit, make sure you’re considering eligibility requirements and looking at cards designed for people who are building credit. But it’s also important to remember that applying for too many cards in a short period of time can hurt your credit scores.

2. There are too many inquiries on your credit reports

A credit card issuer may hesitate to approve your application if you have a lot of hard inquiries on your credit report, especially within a short period of time. If these credit inquiries were from multiple credit card applications, they could suggest to the lender that your financial circumstances have changed negatively. Hard inquiries can also cause a temporary dip in your credit scores.

What you can do: Depending on your financial circumstances, you might want to wait between applications—for instance, a few months. It’s also a good idea to apply only for credit you need, as the Consumer Financial Protection Bureau (CFPB) recommends. One way to avoid hard inquiries is to check whether you’re pre-approved for credit cards before applying. Pre-approval won’t affect your credit scores because it typically uses a soft inquiry to check your credit. But keep in mind, pre-approval also doesn’t guarantee you’ll be approved for the credit card.

3. You have high outstanding debt

Having too much debt might hurt your chances of being approved for new credit, especially if your debt-to-income ratio or credit utilization ratio is high.

Your debt-to-income ratio measures your debt as it relates to your income, and it may indicate whether you can handle more debt. And your credit utilization ratio measures how much of your available credit you’re using. If either of these is high, it might be an indicator that you could struggle to make the required payments for any new credit.

What you can do: If your budget allows, consider paying down debt before applying for new credit. The CFPB recommends keeping your debt-to-income ratio below 36% for homeowners, including mortgage payments, and below 15%-20% for renters, not including rent payments. And the agency recommends keeping your credit utilization ratio under 30%. These lower ratios could be a sign to lenders that you’re using credit responsibly and not overspending.

4. Your credit history is limited

To assess your creditworthiness, lenders typically review your credit history , which includes whether you have a track record of making payments on time. If you’re new to credit or have a thin credit file , you may not have had a chance to prove your creditworthiness yet. This can make it difficult to qualify for a credit card.

What you can do: You may want to consider applying for a secured credit card , which can be used to build credit history with responsible use. Plus, after showing responsible credit use over time, the card issuer may let you upgrade to a traditional, unsecured card.

5. You have insufficient income

A credit card issuer has to make sure you have enough income to make the required payments for your card. If you don’t have enough income to make the minimum payments, you might not be approved.

What you can do: Make sure you’ve listed all sources of your income , including those from full-time, part-time or seasonal jobs, as well as self-employment. Your income might also include interest, dividends, public assistance or shared income, which includes money someone else regularly deposits into your account or a joint account.

If you can’t show adequate independent income, you could consider asking a trusted family member to co-sign your card or add you as an authorized user on their account. Keep in mind that not all credit card issuers allow co-signers, though.

6. You’re too young to apply

You need to be at least 18 years old to apply for your own credit card account. But if you’re under 21, you have to prove that you have enough independent income to make your minimum credit card payments. Having a co-signer who’s older than 21 is another option. But remember, not all issuers allow co-signers.

What you can do: If you don’t meet the age requirements, consider asking a trusted loved one if you could be an authorized user on their card. If the primary account holder uses credit responsibly, becoming an authorized user may help you build credit before you apply for your own card. But negative actions can reflect poorly on both your credit scores.

7. There’s a charge-off on your credit reports

A charge-off generally occurs if you haven’t made a required payment on your credit card account for 180 days. The creditor or lender considers the debt a loss and closes the account, but you’re generally still responsible for paying the amount owed.

If you have a charge-off on your credit reports, it might hurt your credit scores. It also could signal to a lender that you might default on another credit card in the future, so it may be difficult to get approved.

What you can do: If the charge-off isn’t accurate, you could dispute it. Keep in mind, a charge-off will generally stay on your credit reports for up to seven years after the first late or missed payment that led to the charge-off status.

8. The application was filled out incorrectly

Credit card applications may seem straightforward, but it’s possible to make errors on them. For instance, you could mistakenly report a lower income or enter the wrong Social Security number.

What you can do: If your credit card application was denied, you’ll receive a written adverse action notice within 30 days about why it was denied. If the rejection was due to an application error, you could ask about reapplying.

9. You’ve had a recent bankruptcy filing

You may want to start rebuilding credit after bankruptcy , but some credit card issuers might hesitate to approve your application. That’s because a bankruptcy could indicate you had trouble paying back debt in the past.

What you can do: Some credit card issuers may approve you for a secured credit card after the bankruptcy is discharged. Other issuers might require a certain amount of time to pass—with no additional bankruptcy filings—before you qualify for a new account.

10. Your credit report is frozen

If your credit is frozen to protect against identity theft, it restricts access to your credit reports. But if you don’t lift the freeze before applying for new credit, the issuer might not be able to access your credit reports. And that could result in your application being denied.

What you can do: Contact the credit bureaus to unfreeze your credit . This can be done permanently or temporarily, but each credit bureau has a different process. Once your credit is thawed, you may be able to reapply for the credit card.

What to do if you get denied for a credit card

Getting denied for a credit card can be frustrating. But depending on your personal circumstances, here are some steps you can take:

Find out why your application didn’t get approved. You should receive an adverse action notice within 30 days of the lender receiving your application. After finding out why you were declined, reviewing your credit reports may also help you understand areas where you could improve. You can get free copies of your credit reports by visiting AnnualCreditReport.com . You could also use CreditWise from Capital One , which provides access to your TransUnion® credit report and VantageScore® 3.0 credit score.
Dispute credit report inaccuracies. If you spot errors in your credit reports, you can contact the credit bureaus to report the inaccuracies and possibly have them removed.
See if there’s a credit card better suited for you. Eligibility requirements vary from card to card. So it’s possible that you could get approved for a different card. But to avoid having too many hard inquiries on your credit file, you may want to consider getting pre-approved before applying for a new credit card.
Work on improving your situation before applying for another credit card. Depending on your personal circumstances, it may take time to improve your financial situation. But practicing good credit habits, like paying your bills on time every month, can help pave the way for future financial success.

Getting denied for a credit card in a nutshell

If you’re feeling confused about why you can’t get approved for a credit card, remember that lenders are required to disclose why your application was denied. And there are things you can do to improve your chances of approval in the future.

Capital One’s card comparison tool allows you to explore cards based on your credit level. Plus, you can first find out if you’re pre-approved without hurting your credit.

Explore more from Capital One

Are you new to credit or searching for your next credit card? Capital One can help:

Check for pre-approval offers with no risk to your credit scores.
Earn unlimited 1.5% cash back on every purchase, every day with Quicksilver or other cash back rewards cards .
Explore credit cards you can use to build credit responsibly and earn rewards.
Monitor your credit score with CreditWise from Capital One . It won’t hurt your credit, and it’s free for everyone.

How to improve your credit scores: 7 tips that can help

article | April 4, 2024 | 6 min read

How long does it take to build credit?

article | April 9, 2024 | 6 min read

Decline a Request For Credit

Thank you for contacting Doe's about your credit needs. Unfortunately, after careful review of your application, we must decline your loan request at this time. However, we would gladly reconsider your request if someone signed with you on the loan.

Thank you for your recent application for a Doe credit card. Unfortunately, you do not meet our current criteria for credit approval. First, you must be employed for at least one year before we can approve your application. Second, your credit report reveals a couple of delinquent accounts.

If you feel that you have information that will make a difference in these two considerations, please write us at:

Credit Department

Doe Corporation

1600 Main Street

Springfield, Kansas 12346

In any case, we invite you to reapply after you have been with your current employer for more than a year and after your delinquent accounts are in order.

Thank you for applying for in-house credit with Doe & Sons. While it appears that your business holds good financial promise, we are unable to approve your line of credit due to your troubled credit history. Please feel free to resubmit your credit application when you feel more secure about your credit record. For the time being, we will gladly accept your cash, checks or credit cards at Doe & Sons and, as always, we appreciate your business.

We appreciate your interest in obtaining a Doe's credit card. After carefully reviewing your credit application, we have concluded that we cannot offer you a credit card at this time. Although your work record is excellent and your income is sufficient to qualify, several entries on your credit report show payments over 60 days delinquent. In considering credit card applications, we hope to find no payments in the past year that are over 30 days delinquent.

Doe's has a layaway plan, and we hope you will take full advantage of that service until we can offer you credit. As you situation improves, please reapply for a Doe's credit card. We greatly value your business.

How to Write this Refusal Letter: Expert Tips and Guidelines

A letter declining a request for credit, either from a business or a private citizen, should retain the good will of the reader. In most cases, your refusal should leave the door open to future applications from the same party.

Thank the applicant for applying for credit.
Soften the refusal, if possible, by noting any positive items in the reader's application. State the reasons for the refusal, followed by a brief refusal.
Suggest, if appropriate, other possibilities for doing business.
Offer encouragement or a suggestion to reapply later.

Write Your refusal in Minutes: Easy Step-by-Step Guide with Sample Sentences and Phrases

1 thank the applicant for applying for credit., sample sentences for step 1.

Thank you for your interest in Doe's Luggage. We appreciate your application for a credit card.
We appreciate your interest in a loan from Doe Mortgage.
Thank you for your recent request for a line of credit with Doe's Wholesalers.
Thank you for taking the time to fill out a credit application during your recent visit to Doe's Department Store.
We greatly appreciate the order you sent us on June 30.
We appreciate your interest in doing business with Doe's.
Thank you for sending us your credit application. We appreciate your confidence in our services.
Thank you for your letter expressing interest in opening a charge account with our corporation.

Key Phrases for Step 1

appreciate your interest in a loan
appreciate your request for a credit card
appreciate your interest in doing business with
appreciate your application
desire to establish credit with us
greatly appreciate the order you sent us on
greatly appreciate your interest in obtaining
happy to grant your request when
memo requesting credit for
new business venture sounds exciting and challenging
thank you for filling out a credit application
thank you for your interest in
thank you for your recent request for a line of credit with
thank you for your patience
thank you for your recent charge card application
underwent our standard credit investigation
want to do business with you
would like to grant the terms you request

2 Soften the refusal, if possible, by noting any positive items in the reader's application. State the reasons for the refusal, followed by a brief refusal.

Sample sentences for step 2.

Although your part-time work record is excellent, you must be employed full time for at least six months before we can offer you a Doe credit card.
Your new business venture sounds exciting and challenging; however, company policy prevents us from extending credit until a company has been established for at least one year.
According to your financial statements and our credit information, you are not able to promptly meet all of your current obligations. Because of this, we must delay credit approval until you demonstrate your ability to pay your open accounts.
The financial information you provided us does not include your current income or your outstanding debts. Until you furnish that information to us, we cannot process your application.
You have been making regular payments on all your current accounts; however, because you are unemployed we cannot offer you credit at this time.
From the information we have received, you had difficulty paying your previous supplier in a timely manner. Therefore, our credit department suggests that for now we operate on a cash-only basis.
We have thoroughly examined the credit information you recently submitted and have concluded that, due to your current obligations, we can best serve you by offering a payment alternative other than credit.

Key Phrases for Step 2

according to your financial statements and our credit information
after a careful review of your application
after reviewing all the information on your credit application
although your work record is excellent
are not in a position to extend the amount of credit you desire
authorities consulted have not given us sufficient
based on your application and the formulas we use
based on the information you supplied us
because your current liabilities exceed
been making regular payments on all your current accounts
before we can offer you a credit card
being unemployed makes it impossible for us to offer
by then you should have less difficulty
cannot see adding to your outstanding debts
cannot process your application
careful evaluation of your application indicates
committee decided to not grant the requested line of credit
company policy does not allow us to process orders on credit
company has been established for at least
credit criteria require that a customer's liabilities not exceed
current income
demonstrate your ability to pay your open accounts
does not conform to our company credit requirements
enclosed is a copy of their report
feel credit approval should be delayed
financial information you provided us does not include
for your own protection
have been endeavoring to establish your credit
it appears from the credit report we just received
lack of a permanent work record at this time
looked into your credit standing
merit approval under our criteria for extending credit
must be employed full-time for at least
my unfortunate duty to inform you of your ineligibility
not able to promptly meet all your current obligations
not able to extend credit to you
notice that you have been in this area only a few
our research has not provided sufficient
payment has consistently been getting further and further behind
perhaps a further review of your current situation will reveal
refuse credit to any applicant who has filed for bankruptcy
regret to inform you
regrettably we cannot approve your credit application
saying no to a customer is not easy
since receiving your application
sorry to report that we must decline your application
sorry to report that your references
sorry to inform you that we cannot extend credit at this time
unable to grant you the open credit you requested
unfortunately the information we received does not allow us
until you furnish this information to us
when you have established a bank account
your outstanding debts

3 Suggest, if appropriate, other possibilities for doing business.

Sample sentences for step 3.

Until then, we hope you will take advantage of Doe's layaway plan.
While you are establishing your business, we would be happy to process orders accompanied by cash or check.
Have you considered finding a co-signer for your loan?
As soon as you send us the missing information, we will process your application.
With the enclosed thank you certificate, you can purchase any regularly priced merchandise at 10% off on March 30, using cash or check.
When we receive payment from you, we will ship your order immediately.
Again, we appreciate your interest in our firm and hope you will take us up on our offer of 5% off all your cash orders.

Key Phrases for Step 3

as soon as you send us the missing information
as soon as you establish a permanent work record
based on the information we have on hand
certainly want you to look to us as your regular suppliers
considered finding a co-signer for your loan
glad to consider any additional information you can provide
happy to reconsider our disappointing decision
happy to review your account later
happy to reconsider your application
happy to process orders accompanied by cash or check
have no choice
hope you will understand our position
hope you will take advantage of our layaway plan
if you feel the report is in error
if you wish to reapply for a line with a lower ceiling
if you would like additional information
if you can supply us with additional references
look forward to establishing a long-term relationship with you
profits accruing from our products will more than compensate
remember that cash purchases have no monthly interest charge
sure we can set up a program of gradually increasing credit
want very much for you to join our family of customers
welcome any cash orders
when we receive payment from you
when your financial situation improves
when your income/debt ratio changes
will be very happy to reconsider
will find both our service and products outstanding
will be happy to consider your application again
will be as flexible and cooperative as possible
will do all we can to serve you
wish you every success in your new business
work out a mutually satisfying arrangement

4 Offer encouragement or a suggestion to reapply later.

Sample sentences for step 4.

We wish you every success in your new business and look forward to establishing a line of credit for you in the near future.
I am available at your convenience to discuss a smaller line of credit that we can gradually increase as your circumstances improve.
We would be happy to consider your application again when your financial situation improves.
We hope you will apply again later. As always, we thank you for shopping at Doe's.
Let's plan on reviewing your request for credit again in six months. We hope the future will bring a mutually profitable relationship.
We hope you will understand our position. If we can assist you further, please let us know.
Thank you for your understanding. Contact us again in another year, and we will discuss opening a charge account.
Once you have concluded your job search and have settled into the community, we will be pleased to review your application. We wish you all the best.
We appreciate your business and hope you will reapply next year.

Key Phrases for Step 4

am sorry we can't do more for you at this time
available at your convenience to discuss a smaller line of credit
can take advantage of our layaway service
can gradually increase as your circumstances improve
hope to hear from you again
hope you will apply again later
hope to extend credit terms then
hope to open a credit account for you when you apply again
if we have left any questions unanswered
if you think your status will improve
if I can further assist you
if you have any questions
let me hear from you soon
look forward to continuing our business association
look forward to a mutually profitable relationship
look forward to establishing a line of credit for you
looking forward to working with you
plan on reviewing your request for credit again in
please don't hesitate to get back in touch with us
please come in and talk to me at your convenience
please contact us again in
please allow us to serve you in any way possible
regret we could not be more helpful at this time
reopen your application at some future time if you so desire
sincerely want you as a customer
thank you for your interest
thank you for shopping at
when your financial picture changes
will be able to reconsider granting you credit
will make every effort to serve you well

Action Verbs for Resumes and Cover Letters

Business Letter Format Tips

Letter Closings

Sequin Blog

Credit card rejection letters: demystified.

November 6, 2023

Vrinda Gupta

Sequin CEO & Co-Founder | Women's Finance Expert | Visa Alum

We’ve been there: the dreaded credit rejection letter. In fact, Sequin started because our founder, Vrinda Gupta, received a credit card rejection letter from the credit card on a platform she built while at Visa.

Of course, a best case scenario is that you avoid a rejection letter all together. The best way to do this is to do your research ahead of time: before applying for a new line of credit, model out how doing so may impact your credit score. Check your credit free with Sequin's credit score tool ! and consider using our matchmaking quiz to help determine what types of credit cards you might be eligible for.

What it says: “Credit report shows total available credit on accounts is too low”, “Insufficient amount of credit information is reported on credit bureau report”, “Too few accounts on file for a sufficient length of time”

What it means: In this rejection notice, Chase is saying that they went to the credit bureau Experian, pulled your credit history, and found that there was not enough credit history to apply for this credit card. There are both too few credit accounts and the accounts that are open haven’t been used for long enough. When credit card issuers like Chase are trying to determine whether or not they want to extend credit to an applicant, they look for how credit worthy you’ve been in the past. In this case, there was not enough data to demonstrate creditworthiness.

What you can do:

• Stop being an authorized user, and start getting a credit card in your own name. A 2010 study by the Federal Reserve showed that married women are 2x as likely to be authorized users than married men. We’ve talked to countless women who find out too late, after being an authorized user for years, that they have not built up a sufficient credit history. If you are currently an authorized user on a card and have no other credit cards in your own name, we recommend beginning to build credit in your own name as soon as possible (see the next tip for how!).

• Use a secured card if needed in order to build credit history. A secure card is one in which you put down cash to back your own credit line, rather than being extended credit by a bank. Over time, you build up your credit history by demonstrating strong credit habits. A secured card both increases the number of accounts open and the length of time building credit, which will give useful data that helps the issuer assess their risk the next time they apply for a credit card.

What it says: “Your monthly debt obligations are too high given your income — examples may include loan or monthly housing payments.”

What it means: “Your monthly debt obligations are too high given your income” means your debt-to-income ratio is too high. You want to have little debt and a high income when you apply for a credit card, because that gives them assurance that you will be able to pay your credit card off every month. When lenders calculate debt, they look at your rent and/or mortgages, student loan debt, auto loan debt, and minimum monthly credit card payments. They ask themselves: based on your income and how much you already owe your landlords and lenders, are you in a position to take on more debt? Are you living within your means, or are you living beyond your means?

What you can do: Achieving an optimal debt-to-income ratio may be particularly challenging for women: women tend to carry more student debt than men, and their salaries are lower (hello, gender wage gap!). Here are a few ways that you can work toward an optimal debt-to-income ratio.

Take stock of the debt you have and pay off any debt that you can. Pull your own credit report (you can pull them for free once a year at Experian, Transunion, and Equifax) and determine how much you owe on your existing credit cards, mortgage/rent, auto loans, student loans, and personal loans. You can also use a debt-to-income calculator like this one, by Nerdwallet . Are there any debts that you are in a position to pay off right now?

Make sure you are reporting all of your income. When we spoke with women, we learned that many of you have side hustles and alternative sources of income. Make sure that you are reporting all of your income — not just your yearly salary from one job.

Consider calling your bank to switch cards as opposed to applying for a new card. Transferring your credit line as opposed to applying for a new one means that the bank won’t have to issue you more credit. If your bank is offering a cool new credit card that you’re excited about, call them to see if they will switch your current credit line over to the new card rather than applying for a whole new line of credit. Explain to the bank why you’re excited about the new credit card and how you plan to use it. You may need to downgrade your existing credit card to avoid paying two annual fees.

What it says: “Number of credit card accounts”, “Too many accounts opened recently”, “Too many requests for credit or / reviews of credit”

What it means: This rejection letter is telling you that there are too many hard inquiries on your account and too many credit card lines currently open. When lenders see that you are searching around for loans, even after you have credit lines open, they wonder if you are in financial trouble. Applying for multiple loans and/or credit cards raises a big red flag and can cause your credit score to take a hit.

Do your research ahead of time before applying again. Before applying for a new line of credit, do your research on how doing so may impact your credit score and consider using a pre-qualification tool ( like our quiz to determine what types of credit cards you might be eligible for.

Check your credit score report often. If you’re surprised by the news that you have too many accounts open, double check that there are no fraudulent accounts open in your name. You can do that by pulling your credit report at Equifax, Transunion, or Experian and reviewing it for fraudulent accounts. If you find any accounts on the report that you didn’t open, call right away to report it.

Build your credit score back up. If you are applying for credit often and being rejected, your credit score will undoubtedly take a toll. Make sure to pay your existing credit card balances off on time and wait a little while before applying again.

Disclaimer: A friendly and earnest reminder that content in the Sequin Project is not intended to be financial advice, and that the writers at Sequin are not certified financial advisors. If you’re looking to make any decisions related to the content above, please contact a certified financial advisor first.

✨ Learn more about the Sequin Women's Finance Club ✨

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Opinions expressed here are author's alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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|| Women have more anxiety about finances than men , Morning Consult Pro , 2024

|| 14% of women go into debt for beauty , Lending Tree , 2023

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|| Women pay higher interest rates and more in fees - while investing less , FINRA , 2012

|| Debit cards don’t usually earn rewards , Banks.com , 2024

|| Women pay 30% more in overdraft fees as compared to men , BankingDive , 2019

|| Most cards are black and blue , CanStar , 2022

|| Women were granted rights to bank accounts and debit cards only 50 years ago , Forbes , 2023

|| Sequins were a Venetian gold currency until, over time, the reflective metals became decorative accents, Research Gate , 2013

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|| Women pay more for the same everyday goods and services, such as razors, deodorant, and hair care 42% of the time , DailyCampus , 2024

|| We've selected "Pink Tax" categories based on where women typically spend more on everyday products and services , GoBankingRates , 2024

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How to Avoid a Scary Credit Card Rejection Letter

If ghosts and goblins weren’t bad enough this Halloween, the sight that credit card users might actually fear is the mailman. If you’ve recently applied for a credit card, then your mail carrier may be delivering one of the most frightening letters you can get: a credit card rejection notice.

How to Avoid These Scary Letters

Whether you are asking someone out on a date, looking for a new job or applying for a personal or business credit card , everyone hates being rejected. And when your application for new credit is declined, you will likely be notified by mail.

Thankfully, there are several things that you can do to help your chances of being approved for your next credit card.

Only Apply For Credit Cards That You Can Qualify For

An easy way to avoid rejection letters is make sure that you’re applying for a card that you’re qualified to receive.

To find the right card for your, be sure to check your credit score first, and then see how it correlates with how the card is marketed. For example, if you have a limited credit history , or poor credit, then you shouldn’t bother applying for a premium rewards card that’s designed for those with excellent credit. If you have a very limited credit history, then you’ll want to start with a very basic credit card that doesn’t offer rewards. If you have a poor credit history, then you might need to start with a secured card . A secured card works much like a standard, unsecured card, but it requires the payment of a refundable security deposit before your account can be opened.

Pay Down as Much of Your Outstanding Balances as Possible

When a card issuer is deciding on your credit card application, one of its most important considerations is its exposure to default. When it looks at a copy of your credit report, it will be much more likely to approve your application if you have don’t have large outstanding balances .

But what many people don’t realize is that their credit report will show all of their most recent credit card’s statement balances as debt, even if they always avoid interest by paying their balances in full. To reduce the amount of debt indicated on your credit reports, you can pay off your outstanding balances before your statement period closes. When you do this, your credit report will show a zero balance on your cards. It’s also important to pay down any current balances on other accounts from the same issuer as the one you are applying for.

Include All Eligible Income on Your Application

Credit card issuers also place a lot of importance on your ability to repay a loan, and want to see sufficient income. Unfortunately, many credit card applicants will fail to include all of the sources of income that they use to qualify for a credit card. In addition to your business or employment income, you can also include investment returns, Social Security or pension income, retirement fund distributions, inheritance or trust fund payments, unemployment benefits, alimony, and child support. Also, federal regulations say you can include the income of your spouse or domestic partner, so long as you have a reasonable expectation of access to those funds for repayment of your loan.

Reach Out Directly to the Card Issuer

If your credit card application isn’t initially approved, you can take one last step to avoid flat out rejection. Contact the credit card issuer, and ask to speak with a reconsideration specialist. Most card issuers have these representatives which can approve your application over the phone, even if their system had originally rejected it. You can use this opportunity to include additional sources of income that you originally failed to include. And if you have other accounts open with the same issuer, you can also request to have some of those credit lines transferred to your new account, or even to close another account that you don’t need. This allows the card issuer to approve your new account without increasing its exposure to default.

Bottom Line

Most adults have long since outgrown the fear associated with the scary symbols of the season, but the fear of rejection can last a lifetime. By taking these simple steps, you’ll be doing everything you can to avoid receiving that scary letter from a credit card issuer.

This article was originally written on October 30, 2017 and updated on December 10, 2020.

Rate This Article

This article currently has 11 ratings with an average of 4.5 stars.

Jason Steele

As one of the nation's leading experts in credit cards award travel, Jason Steele has been published in over 100 outlets. His articles are regularly syndicated to Yahoo! Finance, MSN Money and other mainstream outlets. Jason is also the founder of CardCon, which is the annual conference for credit card and consumer credit media.

Have at it! We'd love to hear from you and encourage a lively discussion among our users. Please help us keep our site clean and protect yourself. Refrain from posting overtly promotional content, and avoid disclosing personal information such as bank account or phone numbers. Reviews Disclosure: The responses below are not provided or commissioned by the credit card, financing and service companies that appear on this site. Responses have not been reviewed, approved or otherwise endorsed by the credit card, financing and service companies and it is not their responsibility to ensure all posts and/or questions are answered.

2 responses to “ How to Avoid a Scary Credit Card Rejection Letter ”

Great tips for avoidance of a rejection letter, I especially like the idea of speaking to a rejection specialist, I have never heard this term before so thank you for adding something new to my knowledge circle.I would also like to add one more technique and that is to use a written application whenever possible, this just seemed to always get better results for me.thanks. Steve

Hi Steve, thanks for the additional tip!

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Re: Rejected for a credit card I didn’t apply for

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My Suspicious Credit Card Rejection Letters…

Ben Schlappig
Published: May 7, 2023
Updated: May 7, 2023

I’m not sure what to make of this, though it sure is strange. Is someone just playing a trick on me, or is this part of a larger problem? I first wrote about this situation around a month ago, but it has now happened to me again, though in a slightly different way…

In this post:

My first suspicious credit card situation

In early April, I got a phone call from Citi, asking to speak to someone with the exact same middle initial and last name as me. However, his first name was Brian, while my first name is Benjamin (interestingly both start with “B”).

I was confused, and explained the above to the agent. The other thing is that I have a distinctive last name, and I know that no one with the name she asked for exists. The agent thanked me for my time, and that was it. I thought that whole situation was weird, but didn’t put much more thought into it at the time.

Then around a week later, I received a letter in the mail with a credit card rejection for the Citi Diamond Preferred Mastercard. The letter stated that the rejection was because Citi “couldn’t verify some of the information” on the application.

There’s only one thing — I never applied for this card, and it was once again addressed to Brian (with the same middle initial and last name), rather than me.

credit card application rejection letter

My second suspicious credit card situation

I wrote about the above situation about a month ago, but now there’s a further update. I just received a letter in the mail for my application for the Bloomingdale’s American Express Card. I got rejected for the card, on the grounds that they were “unable to verify identity information.”

I’m sure you can guess what I’m about to say next — no, I didn’t apply for a Bloomingdale’s American Express Card. This rejection letter is the first notice I received about my alleged application.

I’m not sure what exactly to do here?

Obviously I could call up Citi and American Express regarding this, but I’m not sure what that would accomplish? Once they realize I can’t verify whatever details were put on the application, they won’t be able to talk to me about the account, never mind that they likely won’t have any information to share.

I would imagine that what’s going on here is somewhere between a practical joke and an attempt at identity theft. Over the past 15+ years of blogging, I’ve had a countless number of people try to screw around with me. This ranges from people canceling my airline tickets, to people ordering room service on my behalf while at a hotel. It’s one of the reasons that nowadays I usually write about my travels after the fact. I’m not sure why people do this, exactly, but… I’ve gotten used to it.

But this situation is kind of odd, because I’m not sure I get the motive. There were no inquiries on my credit report for either of these applications, so it doesn’t look like this person has actually managed to steal my identity in any sort of meaningful way. So that makes me think that it’s more a weird practical joke than anything else.

The only other thing worth mentioning is that I’ve had some odd fraud-related situations in the past several weeks. For one, my AAdvantage account was shut down and replaced by a new account , due to alleged unauthorized access (though no details beyond that were shared with me).

Furthermore, I had a fraud alert on a Citi card, where I was told that Citi had identified that someone had allegedly tried to call in as me, but couldn’t make it through the automated system. However, this person didn’t actually attempt to make any purchases, or necessarily have access to my account info.

I continue to closely monitor my credit, use two factor authentication, track my points balances, etc. I’m not sure if there’s anything I should be doing beyond that, as I don’t think there’s a lot of action I can take here.

I know many people would suggest that I should probably freeze my credit . However, that seems like a headache, and I’m not sure what that would accomplish, exactly:

There’s nothing suggesting that anyone has stolen my social security number, based on the rejections being due to lack of available information, and no new credit inquiries showing on my credit report
In other words, freezing my credit wouldn’t actually change anything compared to what’s happening now; I could keep getting rejection letters for cards I never applied for
While I realize freezing credit falls in the category of “better safe than sorry,” it’s kind of an annoying thing to do if you’re like me, and apply for credit cards with some frequency

Bottom line

I’ve dealt with credit card fraud in the past. If someone tries to make a $500 purchase at Kohl’s in Irvine, that’s easy enough to fix, because it’s obvious fraud that’s easy to identify, the charges are removed, and a new card can be issued.

But this is a bit different, as it’s hard to know what exactly is going on…

What would you do in my situation?

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My son has had this same thing happen several times now from more than one place. Basically we have ignored it as a scam because we don't know what to do. How do we know if the phone number on the letter isn't the frauds number?

from another article - but I've seen many over the years Fraudsters create synthetic identities and it’s easier to do it than most people would imagine. They’re creating a person financially or digitally that doesn’t exist, new identities using a combination of real data and fabricated information.

Social security numbers are easy for people who know what they’re doing. Prior to 2008 social security numbers weren’t randomized, and there’s still an algorithm used to...

Social security numbers are easy for people who know what they’re doing. Prior to 2008 social security numbers weren’t randomized, and there’s still an algorithm used to create these numbers. Social security numbers that get targeted most are ones infrequently used — those of children and the elderly — he recommends freezing the credit file of your children. Everyone’s data is out there. Using social security numbers, dates of birth, and mother’s middle name for validation has become worthless, after the Equifax breach but even before.

Here’s how a phantom borrower is born. The scammer creates their fake identity, gets a fake ID and decides what social security number to use. They go into a store, say Target, and they’re offered a credit card at checkout. The clerk at the store isn’t looking for fraud, they’re incentivized for getting the application. read the rest or do a search - https://viewfromthewing.com/paypal-shares-people-committing-fraud-looks-like-fraud/

Besides freezing credit, you should also put a fraud alert notice on your credit , so a new lender has to call the number listed in the fraud alert when opening a new line of credit.

It's likely attempted identity theft. No doubt your information has been leaked by careless companies (hello T-Mobile with 5+ MAJOR data breaches recently...!!). It's highly likely that your details were shared on the dark web and people are trying to use the details. This is all a result of the careless that "take security very seriously...blah...blah...blah" but do little to actually fix problems. They just give the standard (now largely useless) 2 years of free...

Now, as for fixing this, I hope you find the way. Please DO keep us updated with a follow up posting. This is something that many of us will suffer at some point. It's almost guaranteed at some point with all of the breaches that have happened and continue to happen.

It clearly appears somebody is trying to use your identity to apply for credit, so keep a close eye on it. The call you got may have been the perpetrator himself trying to get more information out of you. Freezing your credit would cause you more trouble than it’s worth, but you should inform all your credit card companies to be aware as it appears somebody is using your name and address to apply for...

Make sure you file with the IRS. Once they have a social security number they can file fraudulent returns for refunds. I now file with a PIN number that the IRS sends out every year.

Floridians are allowed to sign up for IP PIN regardless of any identity theft.

Agree with the comment about blogging about it. Some things you just can't discuss here or could make the situation worse. If it is the case of stolen identity, you will need to report it to the police and apply for new credit cards, etc. If this is a one-off, then I suggest calling Citi and Amex to cancel the cards and to ensure it will not affect your credit score. If you keep the...

This happened to my Mom. She received a letter of a credit card application to Express that was rejected. I researched the name in the letter and found an address to this person 30 miles away. But this person had no social media. It's an attempt of credit fraud. This way the person receiving the rejection letter would call the number in the letter to say "no one by that name lives at this address"...

Do you or did you have tmobile? If so, they probably do have your SSN.

T-Mobile is a favorite for opening fraudulent accounts. When my info was stolen, they must have tried 10 times at least to open T-mobile accounts + they then get phones shipped to drop address.

Someone tried to apply for a PPP loan with my information in 2020. I had credit alerts set up with Experian and was notified in real time and was able to call and stop it. At the very least you should set up alerts with the 3 credit bureas. I went a step further and pay Experian and TransUnion a combined $60 a month to be able to lock and unlock my credit from my phone or computer. As an aside TransUnion allows you to lock Equifax.

You're wasting your money. By law, all bureaus now allow you to freeze/unfreeze for free via the web.

Make sure your 2FA is not tied to your public or personal phone number that you use on all other sites. I had someone call into T-mobile and sim swap me. I got super lucky that I caught it quickly. If they have your main phone number, they can reset your main email and then it is game over.

Having worked for Citi Cards and AMEX branded cards. The first thing looked at is your SSN, and if the initials and surname match it goes onto next step of a credit search. I have a similar problem as there is a Doctor with exactly the same initials and surname as me. Your identity is being stolen I would try and get your SSN changed to include your first name, second initial, then surname. That will be what is sent to credit reference agencies. Also, try and get all your cards issued showing this the the credit reference agencies will record your payment profiles that. In addition, you can put a Notice on your credit reports BUT THIS WILL STOP YOU GETTING AUTOMATICALLY ACCEPTED. Try the initial and you will have to push. However, if you explain they should understand. If you need further help contact me.

Your competitor website uses made up surnames for their John and Sebastian team. Maybe that's to avoid some of the envy based fraud. You should contact the fraud department of that bank to discuss the issue.

I had strange things with citi last week. Wife has 800 credit scores across the board. Less than 1% utilization, most cards have 20k plus limits. They rejected her for a citi card and said her credit score was 6,789 out of 10,000. Yep not even a valid score. She called for reconsideration and the agent didn't seem to even understand the score is invalid. She said "I see you don't carry but 1% balance,...

I have had the exact set of circumstances as you in the last 2 months. I froze all my credit bureau accounts (there are actually 5 not 3).

If you contact the suspicious credit applications, they will remove the hard credit pull off of your file and any adverse rejection entries.

I also proactively changed all of the passwords on my main personal and work emails, and put two factor identification on my major accounts.

Finally, I spent the money with a credit and identity monitoring service to try to keep ahead of this.

This is the world we live in. Its quite tedious to deal with all of this.

identity monitoring service is the best for some peace of mind. Make sure to get police report and do the credit freezes. I put a statement on my credit bureaus that ANY application required a phone call to me at my phone number. I think I had dozens of calls early on.

Use a password manager (a credible one, like 1Password, not LastPass, which has had so many security issues). Freeze your credit file when you're not applying for a card.

I am not sure if they've already automatically done a hard pull, but if they did, I imagine a prankster can just mass apply and get you a bunch of hard pulls, which would cause trouble for your legitimate applications for a while.

Data breaches happen every day and organizations go to great lengths to avoid disclosing them. Ransomware-phishing attacks are commonplace and companies often pay a ransom in exchange for an unenforceable promise from the attacker not to share any data it has obtained. Breach notification is hit-or-miss so you might not know that your data was involved in a breach. Given these facts, plus the letters you’re getting, plus the fact that you’re a public figure, plus the fact that you have a zillion financial accounts, there’s a good chance your SSN or other PII has somehow been exposed and you just don’t know about it. A credit freeze is a good option and worth the small headache.

Ben, think about it . . . how did the issuer know to what address to send the rejection letter? Someone has your address. Is your mailbox easily accessible?

I thought this too at first, Lee--inside job from someone close to him like a building or postal worker. However if that were the case wouldn't they be pulling the letters/denials/approvals with the wrong name out of his mailbox so he wouldn't be aware? So I don't think it's that.

That leaves a number of other possibilities, one being that whoever is doing this just has a last name and address, but nothing else...

That leaves a number of other possibilities, one being that whoever is doing this just has a last name and address, but nothing else like SSN or even first name.

I haven't worked in this field in a number of years now but I am 99% sure if they have SSN correct, then it would show as an inquiry on the credit file, regardless of the first name mismatch.

Additionally, with the first name wrong, this doesn't seem like a legit attempt to get an approval at all. Perhaps decades ago companies wouldn't check first name variations for credit, but they do now.

Whoever is doing this could be still be in the early phases of trying to break into Ben's info and are hoping for a miracle? Or maybe someone made a quick buck by saying I'll sell you someone's info but then giving only the last name and address correct? That's reaching, but this world is crazy.

Otherwise none of this really makes sense from any other perspective besides trying to be annoying or funny, which is dumb, as I am sure that individual/group would be breaking a number of laws in the process.

So yes, confusing situations and I think the freezes are warranted. Glad it was an easy experience to place them.

But, if the culprit sees the rejection on the computer, they don't need to obtain the rejection letter. Just the card if approved.

Re "this world is crazy"

Right, everyone "knows" the world is crazy (which always "conveniently" means the world/OTHER people, usually the governing authorities, are crazy but not they themselves, of course). Yet, curiously, no one typically offers an good explanation on why the world is crazy.

Have you ever wondered WHY the world is crazy? How do you explain it intelligently? Do you have a coherent explanation for the craziness of the world...

Have you ever wondered WHY the world is crazy? How do you explain it intelligently? Do you have a coherent explanation for the craziness of the world that makes sense (religious fantasies are obviously excluded because they only "make sense" and are "valid" to fantasy lovers but never to reality-based truth-seekers)?

Wouldn't the recognition of the underlying cause(s) of this craziness be instructive in terms of HOW we should tackle it to manifest real change out of the craziness?

The WHOLE big picture (not just a part of the big picture) that makes up the human condition, that explains the craziness of the world (if you ever genuinely wondered WHY it is that the world is crazy), that describes human conduct over millennia is the hegemony of the 2 married human pink elephants in the room (and has never been on clearer display than with the deliberate global Covid Scam atrocity) — see “The 2 Married Pink Elephants In The Historical Room –The Holocaustal Covid-19 Coronavirus Madness: A Sociological Perspective & Historical Assessment Of The Covid “Phenomenon”” ... www.CovidTruthBeKnown.com (or https://www.rolf-hefti.com/covid-19-coronavirus.html)

Isn't it about time for anyone to wake up to the ULTIMATE DEPTH of the human rabbit hole --- rather than remain blissfully willfully ignorant and play victim like a little child?

"Separate what you know from what you THINK you know." --- Unknown

The ruling gang of criminals pulled of the Covid Scam globally via its WHO institution because almost all nations belong to it. If you're in the US go to https://sovereigntycoalition.org and sign the American Sovereignty Declaration to #ExitTheWHO and follow their prompts to contact your representatives and tell them to work for their constituents instead of the mega psychopaths in power.

I think you had a lot of good advice the last time you post this. Did you follow any of them?

You can place a fraud alert on your credit file. This way credit issuers must reach out to you first before they open an account under your name.

How do you place a fraud alert?

Same thing happened to me few days ago, a week after getting this letter got approved without calling. Mine was AA card.

Just some friendly advice: if this is in fact someone doing this just to mess with you, please don't blog about it further. You'll just be giving fuel to their fire. I hope your situation gets resolved easily!

Your SSN is compromised, you need to report your identity theft to one of the 3 credit bureaus, report it to the Federal Trade Commission (can be done online) and constant Social Security Administration.

"Your SSN is compromised"

No evidence of that has been presented by Ben.

You should consider freezing your credit - it’s fairly easy to freeze/unfreeze these days.

Here's what I did after identity theft a few years ago and I suggest you do the same:

Freeze or lock your credit with all three credit bureaus immediately. It will take half an hour tops and is well worth the peace of mind.

Also, make sure you get a notification after every credit card expense. Yes, I know it's ridiculously annoying but I sleep better at night knowing, and I caught unauthorized expenses (i.e....

Also, make sure you get a notification after every credit card expense. Yes, I know it's ridiculously annoying but I sleep better at night knowing, and I caught unauthorized expenses (i.e. credit card fraud) instantly a couple of times.

I also check my bank balance and activity daily. A routine I do every morning.

"Also, make sure you get a notification after every credit card expense. Yes, I know it's ridiculously annoying but I sleep better at night knowing, and I caught unauthorized expenses (i.e. credit card fraud) instantly a couple of times.

I also check my bank balance and activity daily. A routine I do every morning."

Either you have a *very* simple credit life, or you have *way* too much time on your hands.

Totally disagree. You have time to fix what fraud can do to your credit? Let it happen and then your response will agree. I check every day including while traveling internationally.

I have plenty of automatic alerts if things that are out of our normal use pattern happen.

Receiving a text on *every* charge? That's insane. The Doubt family makes dozens of charges a day.

Checking charges *every* day? I check weekly and my wife still thinks I have OCD.

Finding a compromised card in a day vs. in 2-6 days? The hassle level between those two time periods is almost identical. I've had plenty of...

Finding a compromised card in a day vs. in 2-6 days? The hassle level between those two time periods is almost identical. I've had plenty of cards compromised, and in no situation was it noticeably worse if it was a few days ago vs yesterday.

I set up alerts for credit card purchases over a certain dollar amount, and for foreign purchases. For my ATM cards, I get a notification whenever they're used *at all*, because I rarely use them.

Or maybe I am efficient and can get things done quickly. Two minutes to go to the bank's website and check A quick glance after every cc notification

I had something like this happen to me recently as well. First, it was someone trying to open a Macy's card in my name, and I caught it in time, and I called Macy's. Second, was someone opened a Bank of America checking account in my name late last year. Since I didn't bank with them, I only found out through a over draft charge notification. So, I went into a branch and spoke with their fraud department while in the branch, and got it resolved. They told me to add an alert on chexsystems, so whenever someone opens an account I will get a notification.

Or just freeze your credit reports and none of that would have happened.

wrong - I had fraud alert on all bureaus. They still were able to open an account with a jeweler - and proceeded to file a change of address. Thankfully I got the change of address notification in the mail. I called and asked why it was approved with the fraud alert - on hold - came back + said I was absolutely correct - there was a fraud alert - and someone had screwed up. Thankfully the credit card had not been mailed yet. So fraud alerts are not perfect.

A fraud alert is NOT the same as a frozen credit report. Your experience is precisely the reason why one should opt for freezing one's credit, not simply placing a fraud alert, if one suspects ongoing fraudulent activity.

Won't help you with a bank account, they use a different system from the credit bureaus.

If I had to guess, this is less of a narrowly directly practical joke and more likely just basic ID theft where you happened to be part of a general data breech but some information that was stolen and possible sold was not complete and whoever is applying is just doing it in large batches to try to get small wins.

Logical, but I bet it's even less sophisticated than that.

They've got Ben's name (sometimes!) and address. That sounds more like dumpster diving than "data breech".

Interesting points about freezing credit. When you unfreeeze your credit, can you immediately apply for cards without issue? And what's the best way to freeze your credit? If anyone has a favorite resource, I'd love to learn more...

Just go into your 3 credit bureau accounts and freeze the credit. Very easy, and just before you apply go in and unfreeze.

It's immediate and you can set how long you want it un-frozen for.

You can just use the native Equifax, Experian, and Transunion websites. All 3 allow you to freeze and unfreeze credit scores for free with just a basic account. My practice is to keep all 3 bureaus frozen unless I am applying for a card. If I want to apply for a card, I unfreeze (aka thaw) all 3 bureaus for one day only (only takes 5-10m), wait 5-10m (just to ensure that the thaws have...

Yup, that's what I do as well

My experience is that just before applying for a new card unlock your credit report(s) then apply. Then I wait for an hour or so and re-lock the account. It’s never been an issue doing it this way, and fraud on my credit has been so far been nonexistent.

My credit has been frozen for years. When I am ready to apply for a new card or a loan such as a car loan, I go on all three credit bureau apps or websites and temporarily unfreeze them for a day or so. No one should be able to open a loan or credit account. The lift is instant. I feel like it's the easiest way to protect against identity theft. Good luck!

Yes you can apply right away. I bought a new car last month and forgot to unfreeze my credit report. At the dealership, they said they couldn't access my report and told me what credit bureau they'd pull from. Logged into that credit bureau account, unfroze my report (for just one day) and then let the salesman know. Less than 5 minutes later they had verified my credit info.

A small hassle...

A small hassle to set up, but so worth it. It's great peace of mind knowing I don't have to worry about someone opening credit cards, taking out loans etc.

“ I know many people would suggest that I should probably freeze my credit. However, that seems like a huge headache”

What? My comment on the earlier story that you obviously had your credit reports frozen was mistaken!

How is it a headache? I can unfreeze my 3 reports in 5 minutes.

How is freezing your credit report a pain ? It takes a minute or so to unfreeze if you know you’re applying for something.

I have all my reports frozen and only a handful of times has it been a pain. But speaking from experience, it’s a real hassle to get fraudulent inquiries removed.

I freeze all my accounts. Initially, getting it set up is a small hassle but worth it for piece of mind someone can’t create a credit account under my information. Unfreezing is simple and you can unfreeze for any amount of time. If you know you are going to apply for a credit card, go to the 3 credit bureaus and you can unfreeze for one or two days then your account is automatically frozen again.

You do need to set up accounts with each of the major credit bureaus but beyond that freezing/unfreezing as needed is quite easy and fast. As others have already stated seems like a very wise move.

I do the same. It's a minor pain but worthwhile.

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I work in data security. To add to what’s been said, you should also be using a password manager such as 1Password if you aren’t already. Bit of a pain to get setup and change all your passwords, but having a different password to every website minimizes the damage a breach at any single site can do. You just have to memorize a new password/passphrase which isn’t viewable by the PW manager. Apple and Google have their own free versions but they’re harder to use and less interoperable than the third party ones you pay 3 bucks a month for. Data breaches happen every day and organizations go to great lengths to avoid disclosing them. Ransomware-phishing attacks are commonplace and companies often pay a ransom in exchange for an unenforceable promise from the attacker not to share any data it has obtained. Breach notification is hit-or-miss so you might not know that your data was involved in a breach. Given these facts, plus the letters you’re getting, plus the fact that you’re a public figure, plus the fact that you have a zillion financial accounts, there’s a good chance your SSN or other PII has somehow been exposed and you just don’t know about it. A credit freeze is a good option and worth the small headache.

Similar thing happened to me last summer - someone applied for a BofA card with a different first name (starting with the same letter) and the same last name. I froze my credit and it hasn’t happened again. You should consider freezing your credit - it’s fairly easy to freeze/unfreeze these days.

February 10, 2023

July 28, 2022

August 2, 2018

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Didn't apply for credit card but got an application denied letter?

I was recently forwarded a letter by the owner of my old address that turned out to be from a credit card company, informing me my application had been declined. Ignoring that this letter was sent to an address I have not lived at for three years I didn't make any application for a credit card.

I have a subscription to my credit report, so in the next couple of months I may see any impact this has had, but what can I do in the mean time? Should I call the credit card company in question and tell them this wasn't me? Though I'm imagining I will be on the phone to someone who doesn't care and tells me it's fine because the application was declined anyway.

I obviously don't know what information was entered, other than the old address and my first/last name, but is there anything else I should do or check to mitigate any potential damage to my credit score?

credit-card
united-kingdom
credit-report
identity-theft

6 If you really want the details out of the credit card co., do the considerable research to self- file a John Doe lawsuit for identity theft. And then use the discovery process to demand every document and recording. They must produce, or explain to a judge why not. As you may guess, John Doe means you are suing "unknown person" and "I hope to use discovery to identify him". Even if you never find him, the lawsuit gives you credibility when asking a company to remove false info or stop dunning you. It's pretty safe to sue John Doe; he doesn't sue back. – Harper - Reinstate Monica Commented Jan 31, 2017 at 23:41
@Harper That sounds like it would have a high risk of being dismissed as a frivolous lawsuit. – curiousdannii Commented Feb 2, 2017 at 3:51
@Harper have you or anyone you know actually tried that, or is it just conjecture? It doesn't sound like a good approach. Setting a credit-watch is easier, AFAIK. – smci Commented Feb 2, 2017 at 4:34
@curiousdannii "frivolous" isn't automatic, a defendant must argue that in front of a judge. John Doe won't. The credit card company might to evade discovery, but that would be weird, and as such make the judge curious and draw attention. shrug . smci agreed, avoiding lawsuits is always better - close the barn door before the horse escapes. You would do this for vengeance, fun, to help convince creditors, or experience/education. Especially the last: knowing the court system makes you better able to defend yourself. – Harper - Reinstate Monica Commented Feb 2, 2017 at 5:35

7 Answers 7

fine because the application was declined anyway.

No it isn't fine. Credit card applications generally need a hard pull, so get it rectified.

Firstly check if an application was really made on your behalf. Some companies use this ploy to pull you into a scheme of making you apply for a credit card.

Secondly call up the credit card company and ask them about the details of who had made the application as you haven't done so and inform them that it was a fraudulent application. It might be somebody is using your personal details to do a identity theft in your name.

Thirdly get in touch with the credit rating firms and see if a check has been made on your credit report. Dispute it if you see a check in your record and have it removed from your report. If you subscribe to credit agency, get the identity theft protection, helps you in such cases.

And finally keep a diligent eye on your credit records from now on. Once bitten, twice shy.

9 "Secondly call up the credit card company" ,,, I would say it needs to be written communication posted via certified mail and reminders questioning who applied this asking for the details ... requesting to undo the damage to credit score. – Dheer Commented Jan 30, 2017 at 13:22
35 If the rejection letter is from a recognizable credit card company, contacting them with contact info retrieved from elsewhere may be reasonable, but there's also the possibility that a phony "credit card company" might send out "rejection" letters in the hope that people will contact them and supply their personal info for "security purposes". – supercat Commented Jan 30, 2017 at 18:59
13 I would personally be less concerned about the hard pull on my credit report, and more concerned that someone has my personal information and is trying to use it to open new lines of credit! – stannius Commented Jan 30, 2017 at 20:05
18 @b3njamin Do not phone the number on the letter. Google the "reputable company" and look up their contact information then check it is the same. The letter may claim to be from them, you have no guarantee that it is. There are multiple possible scams going on here and right now we have no way to know which one it is - so protect yourself. – Tim B Commented Jan 31, 2017 at 15:18
1 What is a hard pull? See here . – jpaugh Commented Jan 31, 2017 at 22:13

This can be a case of someone trying to use your identity to obtain credit. I would put a fraud alert on my credit immediately. I went through something similar... got denial letters for credit I didn't apply to. A few months later I get hit with a credit ding from a pay day loan company that apparently allowed the thief to get a loan who obviously didn't pay it back. I had no contact with this company before they put the lates on my credit and it took over a year to get this cleaned up. Apparently this loan was obtained about a week after I got the first denial letter so if I put a fraud alert on immediately it would have most likely stopped this fraudulent pay day loan before it happened.

4 Wouldn't a suspicion of attempted fraud like this also suggest to report the event to the police? – Hagen von Eitzen Commented Jan 30, 2017 at 21:43
1 What is an 'alert' and is there a UK equivalent? I assume it's a sort of double-lock on your credit history, which declines everything unless you disarm it first? – James Commented Jan 31, 2017 at 14:27
1 @b3njamin CIFAS – AakashM Commented Jan 31, 2017 at 15:28
In the UK the police will in general tell you to contact the financial organisations, especially if no money has been stolen. The financial companies have the expertise with this sort of ID-theft fraud and will involve the police if they can find hard evidence pointing at an identifiable criminal. – nigel222 Commented Feb 1, 2017 at 12:26
Would you mind explaining why this takes over a year to clean up? What are the longest parts of the process? I've always wondered but never figured it out. – user541686 Commented Feb 2, 2017 at 11:15

This question has the [united kingdom] tag, so the information about USA or other law and procedures is probably only of tangential use. Except for understanding that no, this is not something to ignore . It may well indicate someone trying to use your id fraudulently, or some other sort of data-processing foul-up that may adversely impact your credit rating.

The first thing I would do is phone the credit card company that sent the letter to inform them that I did not make his application, and ask firmly but politely to speak to their fraud team. I would hope that they would be helpful. It's in their interests as well as yours. (Added later) By the way, do not trust anything written on the letter. It may be a fake letter trying to lure or panic you into some other sort of scam, such as closing your "compromised" bank account and transferring the money in it to the "fraud team" for "safety". (Yes, it sounds stupid, but con-men are experts at what they do, and even finance industry professionals have fallen victim to such scams) So find a telephone number for that credit card company independently, for example Google, and then call that number. If it's the wrong department they'll be able to transfer you internally.

If the card company is unhelpful, you have certain legal rights that do not cost much if anything. This credit company is obliged to tell you as an absolute minimum, which credit reference agencies they used when deciding to decline "your" application. Yes, you did not make it, but it was in your name and affected your credit rating.

There are three main credit rating agencies, and whether or not the bank used them, I would spend the statutory £2 fee (if necessary) with each of them to obtain your statutory credit report, which basically is all data that they hold about you. They are obliged to correct anything which is inaccurate, and you have an absolute right to attach a note to your file explaining, for example, that you allege entries x,y, and z were fraudulently caused by an unknown third party trying to steal your ID. (They may be factually correct, e.g. "Credit search on ", so it's possible that you cannot have them removed, and it may not be in your interests to have them removed, but you certainly want them flagged as unauthorized).

If you think the fraudster may be known to you, you can also use the Data Protection Act on the company which write to you, requiring them to send you a copy of all data allegedly concerning yourself which it holds. AFAIR this costs £10. In particular you will require sight of the application and signature, if it was made on paper, and the IP address details, if it was made electronically, as well as all the data content and subsequent communications. You may recognise the handwriting, but even if not, you then have documentary evidence that it is not yours. As for the IP address, you can deduce the internet service provider and then use the Data Protection act on them. They may decline to give any details if the fraudster used his own credentials, in which case again you have documentary evidence that it was not you ... and something to give the police and bank fraud investigators if they get interested.

I suspect they won't be very interested, if all you uncover is fraudulent applications that were declined. However, you may uncover a successful fraud, i.e. a live card in your name being used by a criminal, or a store or phone credit agreement. In which case obviously get in touch with that company a.s.a.p. to get it shut down and to get the authorities involved in dealing with the crime.

In general, write down everything you are told, including phone contact names, and keep it. Confirm anything that you have agreed in writing, and keep copies of the letters you write and of course, the replies you receive.

You shouldn't need any lawyer. The UK credit law puts the onus very much on the credit card company to prove that you owe it money, and if a random stranger has stolen your id, it won't be able to do that. In fact, it's most unlikely that it will even try, unless you have a criminal record or a record of financial delinquency.

But it may be an awful lot of aggravation for years to come, if somebody has successfully stolen your ID. So even if the first lot of credit reference agency print-outs look "clean", check again in about six weeks time and yet again in maybe 3 months.

Finally there is a scheme that you can join if you have been a victim of ID theft. I've forgotten its name but you will probably be told about it. Baically, your credit reference files will be tagged at your request with a requirement for extra precautions to be taken. This should not affect your credit rating but might make obtaining credit more hassle (for example, requests for additional ID before your account is opened after the approval process).

Oh, and post a letter to yourself pdq. It's not unknown for fraudsters to persuade the Post Office to redirect all your mail to their address!

Penultimate para you are thinking of CIFAS . – AakashM Commented Feb 2, 2017 at 13:53

Do you have any ties to your old address? In particular are you the LANDLORD? This could have been a precursor application to test identity evidence and setup a mortgage. The perps may even have legally changed their name to yours and even be living in, or close to the house if it is a share house to intercept this kind of mail. Otherwise someone's database may have been breached, so it is important you try to work out where this information used in the application came from. If they are an illegal you may be racking up Council Tax somewhere or end up paying income tax on their earnings. In any case your character has probably now been damaged. So do follow it up right smartly.

No, it's a single occupier house and the owner is an old friend, so hopefully there is nothing malicious coming from there. – James Commented Jan 31, 2017 at 14:28
Oh yes, anyone (in the UK) owning a house reading this, get your mobile phone and e-mail associated with your property at the Land Registry, so any attempts at mortgage fraud or selling your house while you are on holiday will instantly alert you. – nigel222 Commented Feb 1, 2017 at 12:28

I would keep the letter in a file for follow-up, and I would do what you are already planning to do and wait to see what shows up on the credit report.

If this does reflect an identity theft attempt, chances are that others will follow, so vigilance is key here. If there is a hard credit check, then you can dispute that on your credit report. If there is not a hard credit check, there is nothing further this credit card company can do to help you anyway.

The use of an old address would make me suspect that your data was stolen from some database you had registered to long ago with the old address.

I would think that contacting your credit rating firm and the credit card company is urgent.

It's marketing or SCAM tentative. Please check with extreme attention before clicking any link present in the communication.

25 Paper letters have clickable links these days? That's so cool! – David Richerby Commented Jan 30, 2017 at 14:49
2 @DavidRicherby Kidding aside, in a few years retinal computing would make that a trivial exercise. – corsiKa Commented Jan 30, 2017 at 15:51
1 @DavidRicherby: QR codes? – Steve Jessop Commented Jan 30, 2017 at 17:24
1 @DavidRicherby some (scummy disguised as helpful) apps will attempt to auto-open URL they decode in QR codes. That is not a click, but does the same through proxy. – Mindwin Remember Monica Commented Jan 30, 2017 at 18:32
2 Being on paper does not mean it isn't a possible scam. In theory, a bad guy could send out fake denial letters with a phone number or website or name that he controls. Then when people call to see whats up he can ask for enough details to pretend to clear up the fraudulent application. Then he has those details to actually commit identity theft. – Freiheit Commented Jan 30, 2017 at 22:41

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6 lessons I learned from my rejected credit card applications

Update: Some offers mentioned below are no longer available. View the current offers here .

With all our talk of Maldivian vacations and luxurious first-class flights , you might be fooled into thinking that nothing ever goes wrong for the points pros here at TPG. While it's not always fun to talk about, rejected applications are simply a part of life in the points and miles world.

Since 2015, I've submitted a total of 41 credit card applications. Of those, 13 were rejected (including a few rejections for the same cards). While it's never fun to have your hopes dashed like that, I've done my best to learn something from each rejection, either about the specific card or issuer in question or about the broader state of credit card rewards.

Here are a few of the most valuable lessons I've learned from my rejected applications over the years.

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What to do if your application is rejected

Before I jump into my specific rejections, I want to highlight the fact that you don't always need to take no for an answer. Just because an issuer denies your initial application, doesn't mean you should give up hope. Issuers are required by law to give you a reason why your application was rejected. Once you have that information in hand, you should always call the bank's reconsideration line and see if you can get the decision reversed.

Of course, just calling in and saying, "Please, I want it," won't work, but if you can explain to the reconsideration agent why they made a mistake and why you'd be a good customer, you might have some luck. For example, a common reason for rejection (especially as you get deeper into the points and miles game) is that the bank has already overextended your credit and won't give you any more. A common workaround for this is to offer to transfer some credit from one of your existing cards to the new one.

There's no guarantee that this will work, but given the potential upside, it's always worth making the five-minute call to try.

Related: How bad is it to get denied for a credit card?

Too short of a credit history

The card I applied for: CitiBusiness® / AAdvantage® Platinum Select® Mastercard®.

Reason for denial: Less than one year of established credit history.

What I learned: When I was starting with my first couple of credit cards, I had a considerable advantage (no pun intended). Before I left for college, my dad had added me as an authorized user on his United Explorer Card, which he'd had open since before I was born. This meant that at age 20, I had 20 years of credit history and had no problem getting approved for the Chase Sapphire Preferred Card as one of my first cards.

I managed to successfully get approved for seven credit cards in my first year before I ran into my first rejection. Opening so many cards so quickly dropped my average age of accounts, an important factor that accounts for roughly 15% of your credit score , down from 20 years to just a handful of months.

This is how I learned the hard way that many credit cards will automatically reject you if your credit history is less than a year long. There was nothing I could say to change that; it was a hard rule and I wasn't getting around it.

If you find yourself just starting out with less than one year of credit history (or even no history at all), that doesn't mean there's no hope for you. Focus on starter cards and build a relationship with the issuers you're interested in, instead of applying for their best cards out of the gate. Speaking of which ...

The information for the CitiBusiness AAdvantage Platinum card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Going premium too fast

The card I applied for: Chase Ritz-Carlton Rewards card (closed to new applicants).

Reason for denial: Not enough established credit history.

What I learned: The second major international trip I planned with my points and miles was two weeks in Thailand with my partner. I scored an elusive Cathay Pacific first-class award on the outbound flight and wrote my first-ever flight review for TPG on the way back, flying Air Canada 787 business class from Tokyo (NRT) to Toronto (YYZ) .

This trip included a great mix of luxury accommodations and affordable Airbnbs, but after spending three nights on the island of Koh Pha Ngan for the famous full moon party, I wanted to surprise my partner with a few nights at the Ritz-Carlton Koh Samui . At the time, the Chase Ritz-Carlton Rewards card (now closed to new applicants) was offering a sign-up bonus of two free nights at most Ritz-Carlton hotels, and it seemed like it was meant to be.

Back in 2016, this card wasn't subject to the 5/24 rule , so I thought I'd have pretty good odds. Unfortunately, Chase wasn't interested in giving its most premium credit card (at the time) to a college student whose income barely exceeded his beer budget. While I'd had no problem getting approved for the Chase Sapphire Preferred and a handful of other Chase cards , I got the message loud and clear: Without a higher income or a more established credit history (or ideally both), premium cards would remain out of my reach for a while longer.

The information for the Ritz-Carlton Rewards card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Inquiry-sensitive banks

The cards I applied for: Capital One Spark Miles for Business and Citi® / AAdvantage® Platinum Select® World Elite Mastercard® (see rates and fees).

Reason for denial: Too many recent inquiries.

What I learned: The most frustrating rejections in my mind have always been the ones where I felt like I did everything correctly. I followed all the rules and still couldn't get approved. In October 2017, I applied for two new cards, but got instant rejections for both.

So what went wrong? I'd already applied for nine credit cards that year, to say nothing of the 11 (eight approved and three rejected) from the year before, and while my credit score was above 750, my credit report was littered with recent inquiries. Unfortunately, Citi and Capital One are both incredibly sensitive to this. I've heard stories from plenty of friends with credit scores over 800 who both issuers have rejected for having too many recent inquiries on their credit report.

From the bank's perspective, too many recent inquiries signal some level of desperation. Either you need access to more lines of credit (which suggests underlying financial problems), or you're churning through welcome bonuses too quickly — either way, it means you're less likely to be a valuable customer.

This isn't to say that you shouldn't apply for Citi or Capital One cards if you have recent inquiries on your credit report, only that you shouldn't be surprised if you get rejected despite having a high credit score.

Related: How does applying for a new credit card affect my credit score?

Forgetting about issuer-specific rules

The card I applied for: American Express Platinum Card® for Schwab.

Reason for denial: Too many cards opened in the last 90 days.

What I learned: Certain application rules like Chase's infamous "5/24" rule are deeply ingrained in my mind. I've been over 5/24 for most of the last four years, and I knew the exact day I dropped back under this spring. Many other issuers have rules limiting the total number of cards you can open with them or how fast you can get new cards, and in my eagerness and impatience, I simply forgot.

In addition to its " once per lifetime " welcome offer policy, Amex only allows you to be approved for two cards in a rolling 90-day period. That's about the most you should be applying for anyway, so I filed this rule away in the back of my brain and eventually forgot about it. When I went to apply for the Amex Platinum for Schwab, my application was automatically rejected, and there was nothing I could do about it.

Whether you're new to the world of credit cards or an award travel veteran, it never hurts to double-check the rules before you click submit. Wasting an application that has no chance of getting approved made me feel pretty stupid, and a quick five-minute check could've saved me from making that mistake.

Related: The ultimate guide to credit card application restrictions

The information for the Amex Platinum Schwab card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Forgetting the lesson about inquiry-sensitive banks

(Photo by John Gribben for The Points Guy)

The cards I applied for: Capital One Spark Miles for Business and the Citi / AAdvantage Platinum Select World Elite Mastercard.

What I learned: I've gotten a few Citi cards approved here and there, but Capital One has still never issued me a credit card despite three applications now and a credit score over 800. When the Capital One Spark Miles for Business launched its best-ever welcome bonus of up to 200,000 miles, I figured I'd chance it again. (The offer is currently 50,000 bonus miles after spending $4,500 on purchases in the first three months of account opening.)

Only five months had passed since my initial rejection, and while a few inquiries had fallen off my credit report, I'd replaced them with a few new ones. I knew my approval odds were low, but I decided to take the chance anyway. I was less surprised to be rejected this time around but equally disappointed.

Applying during a recession

The card I applied for: Ink Business Preferred Credit Card.

Reason for denial: "Insufficient balance in deposit and investment accounts with us."

What I learned: I started my credit card journey in 2016, about halfway through the longest bull market run in history. Things were easy and good for many years, and I'll admit I was shocked at how many cards I was able to get approved for with a student's income.

Of course, the coronavirus pandemic ripped through the economy and sent the S&P 500 tumbling into a bear market in just 16 days — the fastest ever. After months of waiting, I finally dropped under 5/24 at the beginning of May 2020. I was eager to apply for the Chase Ink Business Preferred Credit Card, which offers a welcome bonus of 100,000 Ultimate Rewards points after spending $8,000 in the first three months of account opening.

I figured that a strong credit score and years of history with Chase would make it easy for me to get approved, but my application was rejected for "Insufficient balance in deposit and investment accounts with us." Earlier in the pandemic, banks took drastic steps to lower their risk and exposure, including tightening up lending standards and cutting credit limits for existing customers.

I tried moving $20,000 into a Chase business checking account I already had open and explaining to the reconsideration agent that this was just a first step, and I'd be willing to make Chase my primary business bank if my application was approved.

Unfortunately, that wasn't good enough, and I have to say this was the most disappointing rejection of all . I'm not sure how much money it would've taken to overturn the decision or if Chase was only approving long-term banking customers at the moment.

Related: How to recession-proof your credit score

Bottom line

There's no sugarcoating it: Rejections of any kind are awful. Even though they don't harm your credit score in any significant way (beyond the inquiry that appears even if your application is approved), it can be hard not to take them personally. If you are rejected, your first step should always be to call the reconsideration line and see if there's any wiggle room. If that doesn't work, the least you can try and do is learn what went wrong so it won't happen again.

Additional reporting by Stella Shon.

What to do when your credit card application is denied

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Key takeaways

If you're denied for a credit card, you can take steps to address the more common reasons issuers consider you a risky applicant.
For example, if your score is too low, you can reapply for a card that accepts lower credit scores you're more likely to be approved for.
To best position yourself for card approval success, use your current cards responsibly — paying your bills on time and in full, if possible — to build or rebuild your credit and show creditors you're more financially ready.

If you’re applying for credit cards and getting repeated denials, you might be wondering what’s going on. Thanks to legislation passed in 1970, credit issuers are required to tell you exactly why they declined your credit card application — so if you wait a week or so, you’ll get a letter explaining exactly why an issuer rejected your application.

Of course, just because you’ve read your adverse action letter doesn’t mean you’ve had all of your questions answered. Did getting denied for a credit card hurt your credit score? Can you be denied for a secured credit card? And how can you improve your odds of getting approved?

We take a look at what you can do after a credit card application is denied — so you can go from “credit card denied” to “credit card accepted.”

Why you were denied — and next steps to take

When you apply for a credit card , it can take only a few minutes to learn whether you’ve been approved or denied — but it can take up to two weeks to learn why your credit card application was denied. The Fair Credit Reporting Act provides consumer credit protections that include a requirement for issuers to tell you why your application was rejected. This document is called an adverse action notice or adverse action letter, and you can expect it to arrive between seven and 10 business days after your rejection.

Here are the most common reasons why credit card applications are denied and steps you can take to position yourself for future approval:

Your credit score is too low

Credit cards are often denied because the applicant’s credit score is too low. Among those with poor credit who applied for a new loan or financial product since March of 2022, 73 percent were denied, according to a credit denials survey by Bankrate . In contrast, only 29 percent of those with excellent credit who applied for a new loan or financial product within the same period were denied.

While this data includes more than just credit cards when talking about financial products, it’s a good illustration of how hard it could be to get approved with poor credit. Each credit card in particular requires a minimum credit score range — and if your credit score is not high enough to fall within that range, the lender might deny your credit card application.

What you can do about it

Before you apply for your next credit card, check your credit score . Know where you fall within the FICO and VantageScore credit score ranges — this will give you an idea as to whether a future creditor might consider your credit to be bad, fair, good or excellent.

Once you know your credit score, compare credit cards designed for applicants within that credit range. Those cards will give you a higher chance of getting approved than cards outside of your range. You can start by checking out Bankrate’s choices of:

Best credit cards for bad credit
Best credit cards for fair credit
Best credit cards for good credit
Best credit cards for excellent credit

As you research new cards, take the opportunity to improve your credit score as best you can while you’re at it. You can improve your score by staying on top of payments owed on existing credit accounts, lowering your credit utilization rate and avoiding applications for new lines of credit, among other actions.

Your income is too low

In many cases, you’re required to report your income and any monthly housing payment on your credit card application. After reviewing this information, a creditor or lenders may decide that your income is too low to extend more credit. While people can use credit responsibly at all income levels, a credit card issuer may consider low income to be too much of a risk, especially when combined with high rent or mortgage payments.

Being denied a credit card over income can have harsh effects on how you view your finances. According to Bankrate’s credit denial survey, 89 percent of those making under $40,000 a year who were recently denied a loan or financial product were likely to report that the denial hurt their financial outlook. This includes feeling more stressed about finances, as well as feeling forced to borrow money from friends and family or delay major financial milestones.

Keep in mind: To avoid being denied over income again, it’s important to understand what counts as income to card issuers and what alternative card products you can consider.

Your income can affect your approval odds for a new credit card, but it isn’t always clear what a lender considers as part of your income. You can typically use the following as sources of income on a credit card application:

Sources of income
Employment	Self-employment	Investments	Retirement
Public assistance	Insurance payments	Child support	Spouse’s income

If you’re a college student or someone working only part-time, you may find it difficult to get approved for a credit card. In that case, consider applying for a student credit card or a secured credit card . If possible, you can also become an authorized user on a loved one’s card. Both secured credit cards and student credit cards are great tools to build strong financial habits. Plus, most credit cards designed with students in mind don’t require an extensive credit history.

You have a negative credit history

If you’ve missed a lot of credit card payments recently or have had run-ins with debt collectors in the past, a lender might not want to issue you a new line of credit. People with many negative marks on their credit reports — whether due to missed payments, collections, foreclosure or bankruptcy — might find it harder to open new credit cards.

You can’t erase late payments or other common credit card pitfalls from your credit report, unfortunately. But, if you can prioritize rebuilding your credit , you may be able to find a credit card for people with bad credit — or a card for average credit — that you’d qualify for.

Some of these cards are secured credit cards, while others are standard credit cards that don’t require a security deposit. These cards tend to have low credit limits and high interest rates, but you can also find cards that offer cash back rewards. The best secured credit cards allow you to graduate to an unsecured card after paying your statement balance on time consistently for a set period.

You’ve applied for too much new credit

If you apply for a lot of new credit at once, lenders might consider you a credit risk. Plus, every new card application generates a hard credit inquiry that can lower your credit score.

It’s a good idea to wait three to six months between credit card applications. Otherwise, it might look like you’re applying for too much new credit in a short period of time.

You picked a card that has application restrictions

Many credit issuers have application restrictions to prevent credit card churning and other card misuse — and not everyone is aware of how these restrictions work.

Keep in mind: Rules come down to the issuer and how often you’ve applied for its cards. Some issuer examples include:

Chase : If you apply for a Chase credit card , you may be subject to the Chase 5/24 rule — if you’ve opened five new credit cards in the past 24 months with any issuer, you won’t likely see approval for a new Chase card.
Bank of America : If you’re interested in a Bank of America credit card , know about Bank of America’s 2/3/4 rule — cardholders are limited to two Bank of America applications per month, three Bank of America applications per 12 months and four Bank of America applications per 24 months.

Before you apply for your next credit card, learn whether the issuer has any application restrictions that might affect your application.

Can getting denied for a credit card hurt your credit score?

No, a credit card denial does not affect your credit . However, you might see a slight drop in your credit score due to the hard credit inquiry associated with your credit card application. Every time you apply for new credit, a lender conducts an inquiry into your credit history — and each of those hard credit pulls can lower your credit score by a few points.

How to get approved for your next credit card

Here are five ways to increase the odds that your next credit card application will be accepted:

1. Use your current credit cards responsibly

The best way to get approved for your next credit card is to use your current credit cards responsibly. Make on-time payments on every card, and try to keep your credit card balances below 30 percent of your available credit to maintain a good credit utilization ratio . This ratio is a factor that accounts for 30 percent of your credit score.

Keep in mind: The more you can prove to future creditors and lenders that you can handle your current credit accounts wisely, the more likely an issuer will accept your next credit card application.

If you’re having trouble making on-time payments on your credit cards, use mobile alerts to remind you of when your payments are due — or set up automatic payments . If you’re having trouble paying off your credit card balances, consider a balance transfer . The best balance transfer cards offer between 15 and 21 months of 0 percent introductory APR on transferred balances, during which you can pay down your balances without accruing interest.

2. Build your credit score

In addition to using your credit cards responsibly, put a little extra focus into building your credit — especially if your credit score is poor or fair. Working your way up to a good credit score is one of the best things you can do for your financial health, so take some time to learn what goes into your credit score and what you need to do to get it as high as possible.

To build or rebuild your credit score, keep your credit card balances as low as possible — or pay them off in full. Your payment history makes up 35 percent of your credit score , and so you’ll want to make your credit card payments on time, every time. Avoid unnecessary credit inquiries, and don’t apply for too much new credit within a short period of time.

3. Monitor your credit reports

As you work on building your credit and using your current credit accounts responsibly, don’t forget to check your credit reports regularly at Annualcreditreport.com — or sign up for a free credit monitoring service that checks them for you.

There are two good reasons to monitor your credit reports. First, you’ll understand how your day-to-day credit activity affects both your credit history and your credit score. You may be surprised to learn, for example, that putting a big purchase on your credit card can lower your credit score for a little while. (Don’t worry, paying off your balance can bring your credit score back up again.)

Another good reason to monitor your credit reports is to quickly spot and report errors. Millions of Americans have errors on their credit reports , so make sure all your credit report information is accurate. Learn how to read your credit report , and make sure you know how to dispute credit report errors , just in case.

4. Get your timing right

The best time to apply for a credit card is when you’re more certain a potential lender or creditor won’t see you as a risk — and when you’re financially ready. That means waiting three to six months after your last card application and taking the steps to improve your credit first, as well as checking to see whether the credit card issuer has any application restrictions that might affect you.

Most major card issuers allow you to check for prequalified offers on select cards with information like your name and Social Security number — without a hard pull on your credit. This can help you better understand where you stand before applying.

5. Choose the best credit card for you

When you’re ready to apply for your next credit card, take some time to compare top credit cards so you understand your options and can choose the best fit for your budget, spending habits and financial goals. Some tips for finding the right card include to:

Look for a good fit for someone with your credit score. Use our CardMatch tool to see preapproval odds with trusted issuers.
Consider cards that complement your spending habits. If you’re not sure what type of card would be right for you, use our Spender Type tool to help you compare options that match your habits and financial goals.

What to do about repeat card denials

If you’re consistently getting denied for credit cards, read your adverse action notices to learn why your applications are being turned down. Look for common themes, like “credit score too low,” and address them in earnest.

If you’re consistently getting denied for credit cards, you might not have a strong enough credit history to get approved for a new credit account. Consider applying for a secured credit card — which can help you build your credit with a credit card that gives you a small line of credit in exchange for a refundable security deposit. You can still be denied a secured card if your income is too low or if you have too many derogatory marks on your credit reports, so approval isn’t guaranteed — but it’s worth a try.

You might also consider becoming an authorized user on a partner or relative’s credit card. This alternative gives you the opportunity to piggyback off someone else’s positive credit history, and might help improve your chances of acceptance for a credit card in the future.

The bottom line

The more you know about why credit cards are denied and what you can do to improve your chances of getting accepted, the better chance you’ll have of choosing the right credit card for your credit score, income level and financial goals. If your last credit card application was denied, use this information to make your next credit card application as strong as possible. It’s how you can go from getting your credit card application denied to getting it accepted.

Article sources

We use primary sources to support our work. Bankrate’s authors, reporters and editors are subject-matter experts who thoroughly fact-check editorial content to ensure the information you’re reading is accurate, timely and relevant.

“ Summary of Consumer Rights Model ” Consumer Financial Protection Bureau. Accessed on February 21, 2024.

“ Annual Credit Report ” AnnualCreditReport.com. Accessed on February 21, 2024.

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Credit Cards

Credit Card Reconsideration: Everything You Need To Know

Updated: Dec 5, 2023, 3:56pm

Credit Card Reconsideration: Everything You Need To Know

What is credit card reconsideration, how to get your credit card application reconsidered, what to say when you call, other ways to contact, tips for getting your credit card application reconsidered, alternatives to credit card reconsideration, bottom line, frequently asked questions (faqs).

There are plenty of scenarios where it makes sense to sign up for a new credit card , including the pursuit of a lucrative bonus offer. Maybe you decide to switch to a credit card with reward categories that line up better with your spending, or perhaps you want a new card with better travel perks. If you’re angling to save money on interest or consolidate high-interest debt this year, pursuing a new credit card with a 0% APR offer can also pay off.

Featured Partner Offers

But what happens when you’re flat-out denied ? This happens all the time, yet credit card denials don’t always happen to people with poor credit scores or low incomes. Similarly, it’s common for credit card applications to go into a pending status.

Credit card issuers have tightened up rules for consumer approvals across the board, and this includes people with good or excellent credit . With Chase credit cards , for example, you’ve probably heard of the unofficial 5/24 rule that limits new accounts for consumers who have had five or more new credit cards within the last 24 months.

American Express, on the other hand, limits welcome bonuses on some of its credit cards to “once per lifetime,” and Citi will only let you earn the welcome bonus on a new card within its family of brands (e.g. Citi ThankYou Rewards , co-branded American Airlines credit cards ) every 24 or 48 months, depending on the specific card you sign up for.

But just because your credit card application is denied or pending doesn’t mean that you’ve violated one of these rules. If you really want that new credit card, it may make sense to call the bank’s credit card reconsideration line to find out if anything can be done to get your application approved.

While major rules from card issuers are usually pretty cut and dried, there are times when people are seemingly denied for no reason. There are also situations where a denial may seem like a mistake. In that case, you can always reach out to the card issuer that denied you one of their products to see if anything can be done.

It’s important to note that under the Equal Credit Opportunity Act, you have the legal right to know why your credit card application was denied. You’ll receive this statement in the mail in the form of a formal notice, so you can use this information as a starting point in your negotiations.

When a consumer reaches out to inquire about a denied credit application, this process is known as credit card reconsideration. If the bank or issuer you’re looking to contact doesn’t have a published credit reconsideration phone line, we’d recommend contacting their card services or application line and ask for reconsideration to avoid calling a scam number. There’s no guarantee that calling a credit card reconsideration line will work, but it’s always worth a try if you believe you are eligible for a card that you really want.

Plus, what do you have to lose at that point? No matter what, the worst thing a card issuer can say is “no.” Since you already submitted an application and the hard inquiry on your credit report is already there, calling to ask why you were denied—and for the card issuer to reconsider—won’t have any further implications on your credit score .

If you applied for a credit card and didn’t get the answer you wanted to hear, you can wait until you receive your legally required letter from the bank with the reason for your credit card denial. These letters often contain a customer service number to call for reconsideration.

Alternatively, you can call the bank and request reconsideration. The numbers below are verified customer service phone numbers from banks that offer a reconsideration option, although they are only for those in the United States.

Card Issuer	Credit Card Reconsideration Line

According to Experian, one of the three main credit bureaus , common reasons for credit card denials include:

You have a low credit score
You have a limited credit history
You have insufficient income
You have a history of late payments
You have too much debt
You’re too young
Your credit report is frozen
You have too many recent credit inquiries
You didn’t fill the application correctly

While some of these issues are pretty non-negotiable and will probably prevent you from being reconsidered for the card you want, others might be easily overlooked. If you have had too many credit cards in the recent past but you can provide the card issuer with an explanation, for example, they might be willing to give your application another look. Similarly, if you have too much credit extended to you already, you may be able to transfer part of the credit line from an old card to your new one.

If the card issuer has insufficient information to approve you, then calling in to provide more details on your application could help push you over the edge as well.

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Experian can help raise your FICO® Score based on bill payment like your phone, utilities and popular streaming services. Results may vary. See site for more details.

When you call your card issuer, you should have an arsenal of information ready and be prepared to make your case. At the very least, you should be willing to explain why you deserve a second chance and be willing to answer any questions they ask you as truthfully as you possibly can.

Here’s a script you may want to use to get the conversation going.

“Hello there. My name is {list name here} and I was recently denied for the {credit card name here}. I applied on {date of application} and I received a credit card denial {online or by mail or phone}.”

If there is an obvious reason why you might have been denied, such as you mistyped your income information on the form, you recently moved or you forgot that you had your credit report frozen, you should mention that.

The representative will then review your application and may ask you additional questions. If a bank has already extended you a large amount of credit, it might ask if you’re willing to reallocate some of your credit lines. In every case, make sure that you answer questions truthfully. Many times, all an application needs is a human review to be approved.

Online Chat

If you are nervous on the phone or just want to see if you can get reconsideration while doing other tasks, online chat might be a more convenient contact option for you. Some banks offer an online chat option to prospective customers. For example, with Bank of America a chat option is available once you navigate to a credit card application page.

Not all banks offer online chat, but if you are an existing customer, there is a chance that online chat will be available once you log into your bank’s website. Some banks, like American Express, will give you the option to open a chat window from every page with a chat button in the bottom corner of your screen. Other banks may offer online chat as a customer support contact option. Search for your bank’s “contact us” or “customer support” pages to find any available chat options.

Credit Card Reconsideration Letter

If your credit card application is denied, you will usually get a notification shortly after submitting your application that you’ll receive a letter within some time period (usually less than 30 days, but up to 60 days) with either a reason for your denial or more information. The letter contains an address and a telephone number of the credit reporting company used, and will also usually include a way to contact the lender for reconsideration. You can either call the number on the letter to inquire regarding reconsideration options or reply to the credit card denial letter via mail.

Review your credit reports . If your credit card was denied for reasons that seem unusual, like your loan balances are too high when they really aren’t, then you should review your credit reports to make sure you aren’t a victim of fraud. Fortunately, you can get a free copy of your credit reports from each of the credit bureaus—Experian, Equifax and TransUnion—through the website AnnualCreditReport.com once per year. Make sure to look over your credit reports in their entirety to check for errors that might hurt your chances at getting a new credit card—or even signal you’re the victim of identity fraud.
Have a reconsideration angle in mind before you call the card issuer . If you know why you were denied in the first place, then you can work on coming up with an angle that might get the card issuer to change their mind. For example, maybe you had more debt on other credit cards when you applied but you just made a large payment that reduced your credit utilization.
Be as polite and helpful as you can be . Make sure you’re as polite as possible to the person who answers your inquiry. They may be more inclined to help you and to expedite reconsideration of your credit card application if you’re calm and level-headed during the process.
Be willing to negotiate . Also be willing to negotiate on other lines of credit you might have with the issuer. In some cases in the past, consumers have been allowed to open new credit card accounts when they were willing to lower their credit limits on other cards they have with the same bank.
Make sure your reason for wanting a new account is acceptable to the bank . Often there are multiple reasons why you might have opened a new credit account. Some of these reasons are better to mention on your reconsideration call. For example, if you apply for an airline credit card with a generous welcome bonus and benefits like checked bags, priority boarding and increased mileage earning with the airline, you’re probably best mentioning the benefits you’ll receive from the card and leaving the welcome bonus out of the discussion.

If you are leaning against calling a credit card reconsideration line or you called and were given a definitive “no” on your application, you still have options to consider. For example, you may want to look into upgrading or downgrading an existing card you have with the same issuer.

Let’s say, for example, you have the Chase Freedom Unlimited® , which earns 5% cash back on travel purchased through Chase Travel℠, 3% cash back on eligible dining and drugstores and 1.5% on all other purchases, plus an additional 1.5% cash back on the first $20,000 in purchases the first year. You applied for the Chase Sapphire Reserve® because you want access to travel perks like airport lounge membership and a credit for Global Entry or TSA Precheck® , but you were denied for the Reserve. In that case, you could consider calling Chase to see if it will let you exchange one credit card for another in the form of an upgrade. Upgrading means you won’t be able to earn the welcome bonus, but you would gain access to all the perks this card offers right away.

The opposite situation is also a possibility. If you have the Chase Sapphire Reserve® and applied for the Chase Freedom Unlimited® because you wanted a new Chase credit card with no annual fee, you could also call Chase about downgrading your card, though you would lose the perks associated with the Sapphire Reserve in this case.

Another option to consider is just waiting it out. If you were denied a credit card due to too many new accounts, too much debt or some other reason, you could give yourself some time to remedy the situation. Wait six or 12 months until some hard inquiries are no longer considered on new credit card applications, or pay down some debt in order to decrease your credit utilization and improve your credit score .

While waiting to apply for a new credit card can mean missing out on lucrative bonus offers for a while, this might be the best move to make over the long-term.

Find The Best Credit Cards For 2024

No single credit card is the best option for every family, every purchase or every budget. We've picked the best credit cards in a way designed to be the most helpful to the widest variety of readers.

If you faced a denial for a credit card you really wanted, don’t be discouraged. You may be able to change the credit card issuer’s mind if you call into its reconsideration line, but it’s also possible that waiting it out is your best bet.

If you don’t qualify for the credit card you want right now, you might also be able to get approved later on. In the meantime, you can look for other ways to maximize the rewards and travel credit cards you already have.

How do I reverse a credit card denial?

A bank may reconsider your credit application, even if you are initially denied. Many banks have a reconsideration phone number that you can call. Often, this phone number appears on the letter you will get in the mail when your credit card is denied.

Will credit card companies give you a second chance?

Many banks will reconsider your credit card application. Maybe your credit reports were frozen or maybe there has been a change to your credit report such as paying off a large balance since you submitted your application. Call your bank’s credit card application reconsideration line to initiate reconsideration.

How do I get a second chance credit card?

Even in banking, there are second chances through a process called reconsideration. Many banks offer reconsideration via phone or online chat. You can find the numbers to call in this article or on the letter you received when your credit card application was initially denied.

If you were denied because your credit wasn’t good enough to qualify for the card, you may want to consider a credit-building card like a secured card or an unsecured card aimed at someone who has made credit missteps in the past. Check out Forbes Advisor’s list of best cards for bad credit if that describes your situation.

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Holly D. Johnson is an award-winning writer and personal finance expert who covers a variety of insurance topics as well as general personal finance. In addition to her articles in Forbes, her work has also been featured by Business Insider, Bankrate, CNN, and Fox Business. Johnson's areas of expertise are in personal finance to include life insurance, specialty business insurance, debt relief, and credit cards. She is the founder of Club Thrifty and co-author of "Zero Down Your Debt: Reclaim Your Income and Build a Life You’ll Love."

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The rejection letter from Barclays felt surprisingly personal — even though I knew it was just business.

“But … but … my credit is excellent," I assured myself. "I’ve never had a credit card application denied before. I’m a total catch! What’s the issue?”

Turns out the bank mailed me a pretty detailed accounting of its reasons for saying "no." Chief among them was “the number of bank cards opened within the last 24 months.”

Fair point. In the two years before my application in April, I had opened several credit cards, with the most recent only a couple of months earlier. In the back of my mind, I knew that might raise some red flags .

“ There's no guarantee that a bank will give you a break, but you never know unless you ask. And often, it's best to do it by phone. ”

Still, denial stings. After all, I’m a responsible user. My credit scores reflect that. And by the way, I’m already a Barclays customer. I’ve got a savings account and an older credit card with the bank. I thought we were buds! Or, at least, I thought I had a case.

Apparently, I was right. Barclays ended up reconsidering its decision and approving me for the card I wanted. It required a few steps but by far the most important one I took? Picking up the phone and calling.

There's no guarantee that a bank will give you a break, of course — but you never know unless you ask. And with credit card issuers, it’s often best to do it the old-fashioned way: by phone.

» MORE: How to apply for a credit card so you’ll get approved

Appealing a denial

Like many people in the digital age, I’d much rather email, text or direct message than make a phone call, especially in cases where I need to collect my thoughts beforehand. Phone calls get me flustered; typing gives me time.

And calling customer service? Not exactly my idea of a party. But when you're pleading a case, it often requires background, negotiation and simple courtesy on your part. You typically need to speak with a person, not a bot.

Fortunately, NerdWallet had a detailed template , which you can use to find the phone numbers to call for most major issuers and the steps to take before doing so.

“ When you're pleading a case, it often requires background, negotiation and simple courtesy on your part. You typically need to speak with a person, not a bot. ”

I’d already reviewed Barclays’ letter and my credit, so the next step was to organize my talking points on paper (well, in Google Docs) so I could reference them as I spoke to customer service.

Then, I was ready to dial. The process took about 30 minutes, and by the time it was over, I’d spoken with three different representatives. But through it all, I remained polite and respectful. I repeated myself frequently, but there’s really no limit to how many times you can say “thank you, I really appreciate it.”

After all, Barclays didn’t have to do anything for me.

I was asked to clarify some details about my finances, including my line of work and job title, and the specifics of a home-improvement loan I’d taken out several years ago. But perhaps the most important question I was asked came near the end of the call: “To open a new card, would you be willing to transfer some of your credit line from your existing account with us?”

In other words, Barclays wasn't willing to extend any new credit to me, but the bank was giving me a different way in, through the Barclays card I was already carrying — assuming I could be flexible.

Fortunately, that wasn't a problem. I had a large enough credit limit on that card (the AAdvantage® Aviator® Red World Elite Mastercard®) to spare, so moving some of it wouldn't hurt my credit utilization ratio .

I readily agreed to the proposition. When the representative asked how much I’d like to transfer, I deferred to her guidance: “Whatever you think is best. Would this amount be enough?”

Ultimately it was. After a brief hold, I heard those magic words: “We are pleased to approve you for the Barclaycard Arrival Plus® World Elite Mastercard® .” It arrived in the mail six days later.

Asking for a product change

What if you’re not looking to open a brand-new credit card account? What if you just want to see whether you can improve the card you already have?

“ Some issuers allow you to initiate a product change online. But actually speaking with a customer service rep can help you better understand your options and steps. ”

In that case, you can call your issuer and request a product change , which allows you to switch your card to one with better rewards, a lower interest rate, no annual fee or some other feature that's more appealing to you. The advantages are many:

You’re not applying for a new account, so there usually isn't a hard pull on your credit report.

You keep the same account, often with the same card number, so you don’t lose any length of credit history, a factor in your credit scores .

You get a credit card that better suits your needs.

Product changes aren’t available for every card, and the process isn’t uniform. For example, some banks may let you apply for the new product without a hard pull, but you’ll still have to close your existing account. The trade-off may not be worth it.

Over the years, with a simple phone call I’ve upgraded:

Chase Slate® to Chase Freedom® .

Citi® Diamond Preferred® Card to Citi Double Cash® Card .

In each case, my needs had changed since opening those original accounts. Back then, I was seeking lengthy intro APR periods. Now, I wanted rewards.

Conversely, I downgraded my Chase Sapphire Reserve® to a Chase Sapphire Preferred® Card , because I wanted a lower annual fee.

Some issuers allow you to initiate a product change online. But actually speaking with a customer service rep can help you better understand your options and steps.

Seeking a credit limit increase

Perhaps you need more headroom to handle a large purchase, or maybe you’re simply trying to improve your credit utilization ratio. Either way, if you’re seeking more purchasing power, you can call your issuer and ask for a credit limit increase .

“ Requesting a credit limit increase could result in a hard pull and a temporary ding to your credit scores. All the more reason to call the issuer and get the details first. ”

Be aware of the drawbacks, though. Depending on the bank and the circumstances, such a request could result in a hard pull and a temporary ding to your credit scores.

All the more reason to call the issuer and get all the details before you proceed.

In my case, for example, Citi wasn’t able to grant a product change for my Citi Simplicity® Card , but the representative did offer to increase the card’s credit limit with no hard inquiry.

Requesting a late-fee waiver

So your billing statement got lost under a pile of papers and the due date just slipped up on you? If you’re a day or two late, you don’t necessarily need to panic — but you do need to call your issuer as soon as possible and explain.

If it’s your first offense and you’ve been an otherwise exemplary customer, the bank may forgive the oversight and waive the late fee. Just make sure you take steps to avoid another mishap , whether it’s setting up autopay or opting into account alerts.

“ You're asking the bank to do you a favor, and that may require more than an email. Be honest, polite and patient — and don't be afraid to pick up the phone. ”

I'd had a credit card account with Chase for nearly 15 years before missing a due date recently. It was a stupid mistake, and I didn't have a good excuse; I just totally spaced on it. When I realized it a couple of days after the fact, I immediately made the payment. My second step was to call Chase, apologize and ask the rep if there was any recourse. She thanked me for being a longtime customer, and the fee was waived within the week.

In each of these cases, remember that you're asking the bank to do you a favor, and that may require more than an email or live-chat window.

Be honest, polite and patient — and don't be afraid to pick up the phone and make a call.

On a similar note...

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Getting a credit card

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Understanding Student Credit Card Denials and Next Steps

Table of contents

Key points about: Student credit card denials

There are a wide range of reasons why credit card companies might deny an application for a student credit card.

If your application for a student credit card was rejected, it’s important to determine the cause so that you can take appropriate follow-up steps.

There are various strategies you can follow to improve your odds of being approved in the future, like using a secured card to build credit.

Common reasons for student credit card denial

If your application for a student credit card is declined, there's no need to worry or lose hope. The key is to find out why it was rejected. Understanding the reason can guide you to make adjustments that could enhance your prospects for approval in future attempts.

Student credit cards are typically designed with students in mind, but approval is not guaranteed. There are various factors that could lead to a denial, such as:

Having a high debt-to-income ratio
Not earning sufficient income to cover potential credit card bills
Not having a credit history
Having a poor credit score
Having a history of missed or late payments

The good news is that federal regulations require credit card companies to clarify why your application was denied . This means you'll have a clear understanding of the reasoning behind the decision. Later in this guide, we'll delve into what actions you can take following this feedback.

Impact of student loans on credit card approvals

Can you be denied a credit card because of student loans? The answer depends on several factors, such as how your loans impact your overall debt-to-income ratio , as well as your history of missed or delinquent student loan payments. For example, card issuers might reject your application if your debt-to-income ratio suggests you may have too many obligations compared to your ability to repay. You may also be denied if your credit score is too low, which could occur if your credit score drops due to missing one or more student loan payments.

Impact of credit score on application outcomes for students

Many student card issuers are willing to approve applicants without established credit. For example, there is no credit score required to apply for a Discover It ® Student Chrome credit card. 1 However, if your credit score is low because of missed or defaulted payments on past loans or credit cards, your application is more likely to be rejected.

The role of income verification in credit approvals for students

If you are under the age of 21 when you apply for a credit card, the issuer may request and verify information about your income. If they decide that you might not be able to pay your credit card bills, your application could be denied. You don't necessarily need a high salary or a full-time job to apply. However, as a student, you do need to show that you have access to a steady income , such as money from a parent that is regularly deposited into your bank account or a part-time job.

Steps to take after you get a student credit card rejection

If your application was denied for a student credit card, there are actions you can take to improve your financial health—and with it, your likelihood of being approved in the future. After your application is turned down, two of the most important steps to follow are reviewing your rejection letter and checking your credit reports.

Step 1: Review the rejection letter

You don’t have to wonder why you got declined for a student credit card. Under federal law, the card issuer is required to transparently explain the reasoning in your rejection letter, also known as an adverse action letter. Be sure to read the letter carefully to learn why your application was denied. There may be corrective actions you can start taking right away, like working on reducing your debt-to-income ratio.

Step 2: Check credit reports

There may be an error on your credit report that caused or contributed to the denial of your application, such as missing or inaccurate information about a payment you made. You may also have been the victim of fraudulent activity, such as identity theft. To rule out these possibilities, it's wise to check your credit report for completeness and accuracy. You're entitled to one free annual copy of your credit report from each of the major credit bureaus whose websites also explain what to do if you locate an error on your report. Additionally, if you are denied for credit, your rejection letter will provide instructions on how to obtain a free copy of your credit report.

Preparing for future credit card applications

To reduce the chance of being denied for future credit cards or loans, it's important to have a thorough understanding of your financial situation. This is why reviewing your rejection letter and your free credit report is so beneficial. Additionally, choosing the right credit card before applying is important, as some cards have more demanding eligibility requirements than others. If you've been denied a student credit card, think about ways to build your credit history, such as making sure you pay all your bills promptly or using a secured card in a responsible manner.

Did you know? Borrowers with little to no credit history or poor credit may struggle to qualify for an unsecured credit card. But credit card companies may have less requirements for secured cards because applicants provide a refundable security deposit. You may not even need a credit score to apply for a secured credit card. For example, there’s no credit score required to apply for a Discover it ® Secured Card. 2 Learn More

Building a strong credit history

Student credit cards are often available even to people with limited or no credit history. However, if you've already been denied due to your lack of credit history, it may be a good idea to look into ways to start building your credit. Some ways you can build a strong credit history include obtaining a credit-builder loan, obtaining a secured credit card, becoming an authorized user, and reviewing your credit report for errors. For more tips on boosting your creditworthiness, learn about building a credit history with a secured credit card from Discover.

Timing and strategy for future applications

When you apply for a credit card, a " hard inquiry " is triggered that may temporarily lower your credit score. Therefore, it's wise to wait at least six months between applications. It's also a good idea to check if you're pre-approved for any credit cards. If you're pre-approved, it typically means the card issuer has already determined that you meet at least some of the eligibility criteria.

Finally, remember to consider a secured credit card, like the Discover It ® Secured Credit Card , as an alternative to student credit cards . Think of secured cards as training wheels for credit. They provide a safe space to practice responsible spending with a safety net (your deposit) while gradually building your creditworthiness.

See if you’re pre-approved With no harm to your credit score 3 Check now →

Students: See if you’re Pre-approved

No impact to your credit score

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5+ Credit Rejection Letter – Word, PDF

Rejecting people is just as heartbreaking as getting rejected. As much as possible, we don’t want to hurt or discourage the people we are rejecting, but it is a must if we need to follow the rules strictly. Fortunately, to save you the hassle, we are offering you with a wide range of Job Rejection Letter on our website.

Rejection Letter Templates
Rejection Letters in PDF

Business Credit

Rejection Letter in PDF

How to Write a Letter to Decline a Credit Request

The first paragraph should acknowledge that the application for credit was received by you but inform the applicant that the application for credit has been declined.
Provide the applicant with supporting reasons behind the rejection of their application. This is to soften the blow while, at the same time, the client may plan ahead on what their next moves should be next.
Make sure to use professional and polite language throughout this letter.
On the next paragraph, however, provide the applicant with a suggestion on what to do so that their application may be approved the next time they apply for credit.
Finalize the letter by signing off on the last part of the rejection letter .

Why Are Some Credit Applications Rejected?

Their balance level is significantly greater than what their credit allows. This can only be fixed if they settle in paying their balances first.
Their credit score has decreased because of their failure to settle their credits consistently. This can be resolved by focusing to make their subsequent payments on time.
Their credit scores were affected because they haven’t used their credit card for a long time. As long as they use their credit card occasionally, their credit scores will be good.

Credit Terms

Credit Application

Credit Report Rejection Letter

What Advise Should You Give to an Applicant Following a Rejection Letter?

Tell them that they can apply for credit again in the future, but urge them to comply with all the requirements to avoid getting denied again.
You may offer the applicant a copy of their credit report for them to review for any inaccurate information.
Suggest to them that they should have their credit fixed as soon as possible.
You may also suggest to the applicant to get a secured credit card instead to avoid making expenses that go beyond the credit’s limitations.

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Introduction to Credit Inquiries

What to do after a credit card rejection, mitigating the impact of a credit card rejection, does getting rejected for a credit card impact your credit score.

Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate credit cards to write unbiased product reviews .

Being rejected for a credit card won't harm your credit score for more than a few months.
If you're denied for a credit card, see which other cards you might be approved for.
Find ways to maximize the cards you already have. Utilize bonuses, shop portals , or use rewards.

Hard vs. Soft Inquiries

Applying for a credit card can be an exciting experience, and that's especially true when you're staring down a new travel or rewards credit card that's offering a sign-up bonus . Unfortunately, we don't always get what we want in this life, and it's pretty common to get rejected for a credit card you want — even if your credit score is excellent.

Fortunately, being rejected for a credit card won't lead to long-term damage to your credit score. The only potential impact to your score is the result from a hard inquiry on your credit report, which is added to your report each time you apply for a line of credit like a credit card or loan.

There are several key differences between a hard inquiry and a soft inquiry. Most notably, soft inquiries don't affect your credit score. Not only don't they affect your credit score, but creditors can't even see your soft inquiries. They're only visible on the credit reports you request.

How Credit Inquiries Affect Your Score

According to credit-reporting agency Experian, hard inquiries on your credit report typically only ding your credit score for a few months, and this is despite the fact they can stay on your report for up to two years. Too many hard inquiries on your credit reports within a short length of time can do more harm than just one hard inquiry, however, since this warns lenders that you may be desperate to borrow money you may not be able to pay back.

While being rejected for a credit card won't irreparably harm your credit score, not getting the card you want can definitely. be disappointing. Fortunately, there are some steps you can take to set yourself up for success next time. If you're rejected for a credit card, here are a few next steps.

Wait It Out

If you applied for a new credit card and received a rejection due to having too many credit cards in the recent past, your best bet is simply waiting it out for six months or longer before you apply for another card.

If you were eager to earn a sign-up bonus and disappointed the bonus you wanted is no longer on the table, figure out ways to utilize the rewards credit cards you have instead. That could mean finding creative ways to rack up more points, such as going through a shopping portal when you buy something online, joining an airline's dining rewards program, utilizing bonus categories, or putting more of your purchases on credit.

If you were applying for a credit card because you wanted to consolidate high-interest debt or you need to borrow money, you can also consider alternative products like a personal loan.

Make Sure You're Paying All Your Bills on Time

If your credit score isn't as great as it could be, you should also spend time figuring out ways to improve it. Since your payment history is the most important factor that makes up your FICO score , at 35%, this is a good place to start.

Make sure you're paying all your bills early or on time, and the credit bureaus will hopefully reward you with a higher score as a result of your timely payments.

Pay Off Some of Your Debts

The second most important factor that makes up your FICO score is the amount of debt you owe in relation to your credit limits, or your credit utilization. This factor makes up another 30% of your FICO score, so you have the potential to improve your credit if you take debt repayment seriously.

Most experts suggest keeping your credit utilization below 30% for the best results, which would mean maintaining balances of $3,000 or less for every $10,000 in open credit available to you.

Fortunately, paying off debt comes with other benefits. Yes, you can boost your credit score, but you can also save money on interest and free up cash you can use to save or invest.

Read up on Card Issuer Rules Regarding Approvals

Finally, make sure you're not applying for credit cards you were unlikely to get approved for in the first place. For example, Chase has a rule, called the 5/24 rule , that says you typically cannot get approved for one of its credit cards if you have had more than five new credit card accounts within the last 24 months. If you have picked up 15 new cards within the last two years, then applying for the Chase Sapphire Preferred® Card is likely a lost cause due to this rule.

Citi has a similar rule for its co-branded American Airlines credit cards and bank cards that earn ThankYou points. This rule states that you can't get approved for one of their cards within the same family until you haven't had a card in that family for 24 or 48 months. If you have the Citi Premier already, for example, you can't apply for the Citi Prestige until you've canceled your Citi Premier and waited for 24 months. A similar but longer 48-month rule applies to some (but not all) of their American Airlines credit cards.

In addition to watching out for card issuer rules, also make sure you're only applying for cards you're likely to get approved for based on your credit score. If you know your credit score is around 600 and you apply for a credit card that asks for "good or excellent" credit, for example, you shouldn't be surprised when your request is denied outright.

In that case, you should look for credit cards for fair or average credit , then use your card as a tool to boost your credit rating over time.

No, the rejection itself does not impact your credit score. However, the hard inquiry made by the lender during the application process can temporarily lower your score by a few points.

A hard inquiry will remain on your credit report for two years, but its impact on your credit score decreases over time, typically affecting your score for about 12 months.

While you can apply again, it's wise to wait and address any factors that led to the rejection first. Multiple hard inquiries in a short period can have a cumulative negative effect on your score.

A single hard inquiry might lower your credit score by about 5 to 10 points, but this varies based on your overall credit history and the number of inquiries you've had recently.

Consider pre-qualification options, which usually involve a soft inquiry that doesn't affect your score. Also, work on improving your credit factors, like paying down existing debt and ensuring your credit report is accurate.

For rates and fees of the Delta SkyMiles® Reserve American Express Card, please click here.

Main content

Similar Letters

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A letter to refuse an application for credit, either from a business or a private citizen, should maintain the good will of the reader. Commonly, your declining letter should still leave an open door for future applications from the same person or business.
Express gratitude to the applicant for requesting credit.
Maintain a soft tone in refusing, if possible, by pointing out useful items in the reader's application. Explain the details why his or her application was denied.
Provide, if possible, other possibilities or ways of doing business.
Encourage him or her to apply some other time again.

SAMPLE LETTER

[Letter Date]

[Subject: Normally bold, summarizes the intention of the letter] -Optional-

Dear [Recipients Name],

All-Star Computing Supplies recently received your in-house credit application. Unfortunately, after conducting a thorough examination of your credit history, we are not able to offer you a line of credit. We recognize the potential of your business and would be more than willing to reconsider your application when you have resolved some outstanding credit issues. Further, we would invite you to consider meeting with one of our consultants at All Star Finance who may be able to work with you to resolve your credit issues. We, at All Star Computing Supplies, value your custom and look forward to being able to be of assistance to you for all your computing needs in the future.

Sincerely, [Senders Name] [Senders Title] -Optional-

[Enclosures: number] - Optional - cc: [Name of copy recipient] - Optional -

Decline a credit request. Sample letter.

Further things to consider when writing rejection letters to clients

Rejection Letters

Rejection letters are letters written to inform people that something they have made, written, etc., has been turned down. These letters can be used, for instance, to inform people that they have not been chosen for a job or school enrollment or that a book they have written has not been chosen for publishing. Conveying rejection can be difficult because most people don't know how to say the words without hurting the recipient. Actually, in most cases, people don't write rejection letters at all. They just drop communication with the concerned person, (which is rude). Rejection letters are important because they help build trust and develop goodwill between the parties involved. After rejection, the people affected will be frustrated no matter what. However, well-drafted rejection letters can soften the blow and encourage them to keep trying. An excellent rejection letter is brief, considerate, and to the point. Begin by thanking the recipient for trying. State your decision politely and assertively, giving reasons for it. If you are rejecting a job application, for instance, give a genuine reason for it and encourage the recipient to apply for other positions. End on a positive note and wish the recipient success.

Letters to Clients

Letters to clients are letters a person or organization writes to other people and/or organizations that benefit from the senders' products or professional services. These could be welcome letters to welcome the clients to the organization, introduction letters to introduce a product or service to the clients, or thank-you letters to appreciate clients for their continued support. They could also be response letters to respond to clients' queries or inform letters to notify the clients of important matters like discounts on products and services, relocation of offices, etc. Basically, a letter to a client can be just about anything, as long as whatever you are communicating is business-related. Letters to clients are business letters, and therefore, they should be formal and professional. Start the letter with a proper salutation. Clearly state the purpose of your letter. If a client is required to take a certain urgent action, make sure to specify exactly what he/she is supposed to do. Be brief and straightforward and avoid adding irrelevant details. Close the letter by warmly inviting the recipient to respond or to take the necessary action. Sign the letter and provide your contact details. Print the letter on the company's letterhead.

These articles may interest you

rejection letters

Rental Application Denial Letter: How to Politely Reject a Tenant

Reading Time: 5 minutes

Although the ultimate goal of any landlord is to put a renter into a property, there are some times when it’s just not the right fit. Not every applicant who wants to live in your rental is going to work. When this happens, you’ll find yourself having to prepare a rental application denial letter.

It may feel daunting to have to write this type of letter. It’s not easy having to reject someone in any situation. However, with the right approach and plenty of transparency, you’ll get through this process just fine, moving on to find the ideal tenant.

Legal reasons to reject a rental application

While we’ve all met people whose personality is something we’d like to say “no” to, the Fair Housing Act restricts the reasons, as a landlord, you can reject someone’s rental application . You must adhere to these regulations to prevent any legal recourse.

Under the Fair Housing Act , a rental application denial letter cannot get served on the basis of race, color, national origin, religion, sex, familial status or disability. This prevents housing discrimination and reverses housing segregation. You’re also not allowed to deny a renter’s application based on their criminal record unless there are dangerous criminal convictions that could put people, and your property, at risk. In other words, a DUI is not grounds to deny a potential renter, but getting convicted of arson, most likely is.

Even with the Fair Housing Act policing rental application rejections, it is legal to say “no” to a potential renter in specific instances, mostly when they fail to meet your rental requirements. Here are a few examples:

1. When a credit score isn’t high enough

It’s a common practice for a landlord to run a credit check on every applicant. As long as you do this, you can reject a potential tenant if their score is too low. Since a credit score is indicative of an applicant’s financial history, a low number could mean they don’t pay their bills, which includes rent.

It’s your personal preference whether you allow them to bring in a co-signer or guarantor to help get their rental application approved despite their credit history, but you don’t have to.

2. When the money doesn’t work out

Expectations when it comes to finances are also a major concern for you as a landlord. Not only does an applicant need to have enough liquid funds to cover all the upfront costs — first, last, security, etc. — but they need enough income to pay the rent each month along with their other bills.

Many landlords ask that their renters make a specific amount, annually, above rental costs to ensure everything is good. The standard ask is three times as much income as rent.

3. When their rental record is less than stellar

Looking at a potential tenant’s rental history may also raise some red flags that could lead to a rental application denial letter. Situations like prior evictions , records of unpaid rent or fees, bad feedback from previous landlords and proof of previous property damage are all solid arguments to reject a rental application. You need to protect your property in every way, so it’s best to be hesitant when issues like these arise.

4. When their lifestyle doesn’t mesh

You’ll most likely have additional rules related to your property. You may have a no pet policy, or a zero smoking indoors policy. Except for emotional support animals, these are rules you’re able to enforce. If a potential tenant comes to you with their dog or says they’re a smoker, you can reject their application because of their inability to meet all your requirements for tenancy.

5. When there’s an issue with their application

If a potential tenant lies on their application, or can’t complete it, you also have grounds to deny them tenancy. These are, in fact, two very big reasons to write a rental application denial letter. Either they’ve falsified the information you need to approve their application, or they simply didn’t give you enough. Either way, you can’t make an informed decision if this applicant is even safe to have living in your property.

6. When the property is no longer available

When demand is high for a specific property, you may get more rental applications than you actually need. Evaluating them on a first-come, first-served basis, you may fill the vacancy quickly. It’s polite to send a letter out to the other applicants letting them know the property is no longer available. Not necessarily a solid rejection, but another example of when it’s legal to tell an applicant “no” in regards to renting your property.

How to write a polite rental application denial letter

Once you understand when it’s okay to reject a rental application, the next part is crafting the actual letter. It’s stressful because you’re having to let someone down. But with enough finesse and information, this should be a seamless break.

Your letter should have a professional and informative tone, covering exactly why you’re denying their rental application. Include as many specifics as possible, such as:

Application date
Property address
Reason(s) for rejection
Supporting documents (if necessary; i.e., a copy of their credit report)
Your contact information (for additional questions)
Suggestions for alternate options (optional)

Also, don’t forget to thank them for applying and let them know you feel bad about having to say “no.” The, “We regret to inform you,” phrase works every time.

Sample rental application denial letter template

Some rental application denial letters will feel like you’re filling out a form. They’ll list all the possible, legal, reasons to deny a renter and let you check the boxes. This does save time, but it’s often impersonal enough to rub prospective renters the wrong way.

If you can, take the time to make it a little more personal, and a little less formulaic. Download and try out this template instead.

(Applicant’s full name)

(Address of rental property)

RE: Rental application review

Dear (Applicant’s name),

Thank you so much for submitting your rental application for (Property Address.) I’ve had time to review it and sincerely regret to inform you that it was not accepted at this time.

The decision was made based on (fill in as many specifics regarding the reason why you denied the application such as low credit score, income concerns, the property is no longer available, issues with rental history, etc.)

I understand this is not the news you were hoping to hear. Should you have any questions regarding your rental application status, please don’t hesitate to reach out to me directly at (your phone or email.)

You may also want to consider (insert any advice, if applicable to help them out the next time such as offer up a co-signer, seek rentals more in their price range, etc.)

(Your Name)

Finding the perfect tenant

Remember, there are many reasons why you can reject a rental application, but it’s not always what’s on paper that counts. If possible, get to know your applicants a little bit when they come to view the property, before filling out an application. Make some notes on your first impressions and consider using that to help sway your decision if their application comes back less-than-stellar. Your perfect tenant may not always have the perfect application.

Alison is part of the Content Marketing team as a Content Marketing Specialist. In her 4 years at Redfin, Alison has written a variety of articles ranging from home design tips to housing affordability. A California-native, Alison currently resides in Seattle where you can find her catching a concert or exploring farmers’ markets. Her dream home is a cottage-style house with a chef’s kitchen and a cozy room to store and play vinyl records.

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Helping our customers through the CrowdStrike outage

Jul 20, 2024 | David Weston - Vice President, Enterprise and OS Security

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On July 18, CrowdStrike, an independent cybersecurity company, released a software update that began impacting IT systems globally. Although this was not a Microsoft incident, given it impacts our ecosystem, we want to provide an update on the steps we’ve taken with CrowdStrike and others to remediate and support our customers.

Since this event began, we’ve maintained ongoing communication with our customers, CrowdStrike and external developers to collect information and expedite solutions. We recognize the disruption this problem has caused for businesses and in the daily routines of many individuals. Our focus is providing customers with technical guidance and support to safely bring disrupted systems back online. Steps taken have included:

Engaging with CrowdStrike to automate their work on developing a solution. CrowdStrike has recommended a workaround to address this issue and has also issued a public statement. Instructions to remedy the situation on Windows endpoints were posted on the Windows Message Center . 
Deploying hundreds of Microsoft engineers and experts to work directly with customers to restore services.
Collaborating with other cloud providers and stakeholders, including Google Cloud Platform (GCP) and Amazon Web Services (AWS), to share awareness on the state of impact we are each seeing across the industry and inform ongoing conversations with CrowdStrike and customers.
Quickly posting manual remediation documentation and scripts found here .
Keeping customers informed of the latest status on the incident through the Azure Status Dashboard here .

We’re working around the clock and providing ongoing updates and support. Additionally, CrowdStrike has helped us develop a scalable solution that will help Microsoft’s Azure infrastructure accelerate a fix for CrowdStrike’s faulty update. We have also worked with both AWS and GCP to collaborate on the most effective approaches.

While software updates may occasionally cause disturbances, significant incidents like the CrowdStrike event are infrequent. We currently estimate that CrowdStrike’s update affected 8.5 million Windows devices, or less than one percent of all Windows machines. While the percentage was small, the broad economic and societal impacts reflect the use of CrowdStrike by enterprises that run many critical services.

This incident demonstrates the interconnected nature of our broad ecosystem — global cloud providers, software platforms, security vendors and other software vendors, and customers. It’s also a reminder of how important it is for all of us across the tech ecosystem to prioritize operating with safe deployment and disaster recovery using the mechanisms that exist. As we’ve seen over the last two days, we learn, recover and move forward most effectively when we collaborate and work together. We appreciate the cooperation and collaboration of our entire sector, and we will continue to update with learnings and next steps.

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How to get preapproved for a mortgage

In a nutshell

Mortgage preapproval gives you an accurate picture of how much house you can afford, streamlines the homebuying process and increases your chances of successfully securing a loan.

Check your finances (income, credit score and monthly debts) ahead of time to see if you meet your lender standards before applying for preapproval.
A mortgage preapproval letter gives you a loan estimate and shows sellers that you have reliable financial backing for a specific period of time.

What is a mortgage preapproval?

Many homebuyers need a mortgage to buy a home. Getting preapproved for a mortgage allows you to narrow your home search to properties within your budget.

To get preapproved for a mortgage, you’ll need to submit a mortgage application and documentation detailing your income, assets, debts and credit history.

If the lender determines your employment history, income and finances qualify you for a certain home loan program, you’ll then receive a preapproval letter. This document states the lender's willingness to give you a loan and the approximate loan amount you qualify for. This way, you can start your house hunt with a solid idea of what you can afford and show sellers that you’re a serious buyer with a strong chance of closing the transaction.

Benefits of mortgage preapproval

There are several advantages to getting preapproved for a mortgage.

You get a clear picture of your purchasing power: Knowing the maximum amount you can borrow helps you narrow your home search to properties within your budget.
You show you mean business: When you're preapproved for a mortgage, it signals to real estate agents and sellers that you're a serious buyer. They're more likely to prioritize working with you because they know you have the financial backing to make a legitimate offer.
You know your monthly housing costs: A preapproval lays out your monthly mortgage payment estimate, including principal, interest, property taxes, homeowners insurance and private mortgage insurance (if putting less than 20% down).
Your loan approval might move quicker: Since your financial information has already been verified during preapproval, the underwriting process moves faster. This can help you close the deal more quickly in a competitive market where time is of the essence.
You’ll know if you need to work on your credit: Preapproval can uncover any issues that may give lenders pause, such as errors on your credit report, faulty income documentation or too much debt. By addressing these issues early on, you can take steps to improve your financial profile and try again once those issues are resolved.

When to get a mortgage preapproval

Here’s when getting preapproved for a home loan is most helpful:

Before you search for homes

As the old saying goes, it's best to measure twice and cut once. A mortgage preapproval lets you know (almost) exactly how much you can borrow before you start looking at houses so you don’t fall in love with properties outside of your budget and set realistic expectations from the start.

You’re looking in a seller’s market

When sellers have the upper hand, houses can sell fast and buyer competition is fierce. In this scenario, having a mortgage preapproval letter in hand can help you stand out from other buyers and move fast. It shows sellers you're not just browsing; you have the financial backing needed to pounce on the right opportunity.

You’re unsure about your financial standing

If you're feeling a bit unsure about where you stand financially, getting preapproved for a mortgage can provide some much-needed clarity. It's a good way to assess your financial situation to see if you'll qualify for a loan and what you can realistically afford. Whether you're worried about credit issues, debt or income stability, a preapproval can help you understand your options and make informed decisions about your next steps.

You want to buy a house quickly

Getting preapproved streamlines the homebuying process and allows you to get to closing day faster. Since much of your mortgage application is completed during preapproval, the rest of the mortgage process (underwriting) tends to move along more smoothly so long as you’re responsive to your lender’s requests for information and nothing changes in your finances or job before closing.

Requirements for a mortgage preapproval

Getting preapproved means meeting specific standards lenders have for borrowers. These vary by loan program and lender, but typically include a review of key information.

Credit scores and history

Your credit profile is like a financial report card — it shows lenders how responsible you've been with borrowing money and repaying debt in the past. Credit standards vary among lenders and by mortgage type.

For example, borrowers typically need a credit score of 620 for a conventional loan. On the other hand, you can get an FHA loan with a credit score of 500 if you can afford a 10% down payment, or a 580 credit score if you put down 3.5%. VA loans and USDA loans usually require a score of 620, but borrowers with lower scores might qualify if they have low debt-to-income ratios and substantial savings.

Employment and income

Lenders prioritize two characteristics in a borrower's income: stability and sufficiency. In other words, a steady flow of money that allows you to afford your mortgage payment is vital to mortgage preapproval.

Lenders also want to see that you have a consistent employment history with a regular paycheck. They'll likely ask for verification from your employer such as pay stubs or a letter of employment. If you're self-employed, you'll need to prove that your business creates enough income to sustain your expenses by submitting two years’ worth of bank statements and tax documents.

Debt-to-income (DTI) ratio

Your DTI is a measure of how much of your gross monthly income goes toward monthly debt payments, including your new mortgage payment. If one-third of your monthly paychecks go toward debt payments, for example, you have a DTI ratio of 33%.

Lenders use this ratio to gauge your ability to manage additional debt, like a mortgage payment. Generally, they like to see a DTI of 36% or lower for all mortgage types. However, some lenders allow as high as 50% in some cases.

Down payment amount and source

According to recent data from the National Association of Realtors , the average national down payment for first-time homebuyers is 8% of a home’s purchase price. This figure rises to 19% for repeat homebuyers. If you buy a $300,000 house, that means your down payment will likely be between $24,000 and $57,000.

Lender requirements for down payments also depend on the loan type. For instance, FHA loans require a 10% down payment for borrowers with credit scores between 500 and 579 or 3.5% if your score is 580 or higher. On the other hand, some conventional loans require at least 3% down. Some mortgage types, such as VA and USDA loans, don’t require a down payment at all.

Your down payment can come from savings, investments, a monetary gift from a family member, a down payment assistance program from your local or state government or a nonprofit organization.

How to get your mortgage preapproved

You can help increase your chances of a successful mortgage preapproval with these three steps.

1. Check your credit

First, take a look at your credit report. Your credit score is an important factor in qualifying for a home loan and getting a competitive interest rate. You can get a free copy of your credit report from the three major credit bureaus once a year through AnnualCreditReport.com . Inspect your reports for errors, issues or weak spots that need addressing.

2. Shop for a mortgage with multiple lenders

Once you've reviewed your credit situation, shop around for lenders. It's best to cast a wide net and see what offers you get. Each lender has its own criteria, so it pays to compare. Consider large banks, local or regional banks or credit unions and online lenders in your search. If you apply for a mortgage, each lender will perform a hard credit check, which can temporarily lower your credit score. However, if you apply with multiple lenders within a 45-day period, all of these checks will count as one credit pull, minimizing the impact on your score.

You'll also provide detailed information about your income, debts, assets and employment history during the mortgage application process.

3. Obtain a preapproval letter

When you pick an offer and a lender that suits your needs, your lender will review your application. You'll either receive a rejection or a preapproval letter outlining the maximum amount you're qualified to borrow. This letter shows sellers that you're a legit buyer. Preapproval letters typically expire after 60 to 90 days, though. Once that time frame is up, you’ll have to reapply for a mortgage all over again, so acting quickly is critical.

How much does preapproval cost?

Preapproval is typically free with most lenders: It’s how they attract more customers. When a potential borrower sees how much they qualify for, they’re more likely to go out and find a home. Plus, borrowers with preapproval letters have more success in the housing market, ultimately bringing in more business for lenders. However, some lenders may charge for preapproval, so it’s crucial to check before applying. Once you have an accepted purchase offer and your loan goes into underwriting, you’ll likely pay a lender origination fee and other third-party transaction fees to process and close the loan.

How long does it take to get a mortgage preapproval?

It’s typical for lenders to take seven to 10 business days to review your application and provide a mortgage preapproval letter. If the lender needs more documentation from you, the timeframe can be longer. The exact timeline to obtain a mortgage preapproval varies by lender, so ask before you apply to find out their precise timing.

What to do if you’re denied a mortgage preapproval

Receiving a mortgage denial can hurt, especially if you’re excited to start house hunting. If the lender denies your application, they’re legally required to explain why in writing. For instance, your credit score might need some work, or perhaps your DTI was too high. In any case, once you know the problem, you can work toward a solution. Remember, if you want to apply again, hold off on applying for any other forms of debt, like credit cards and personal loans (or closing any longtime accounts).

The AP Buyline roundup

Securing a mortgage preapproval is useful if you’re looking to buy a home and need financing to realize your homeownership dreams. It's not just about knowing what you can afford; it shows sellers and real estate agents that you're a serious buyer with the financial means to close the deal.

By checking your credit, applying with multiple lenders and obtaining a preapproval letter, you'll be well equipped to navigate the homebuying process with confidence and clarity.

Frequently asked questions (FAQs)

How far in advance should i get preapproved for a mortgage.

Preapprovals typically last between 30 and 90 days. The specific time frame depends on your approval letter, so it’s best to ask the lender how long their preapprovals last before applying.

What are the five steps to getting a mortgage preapproval?

The five steps to getting a mortgage preapproval are as follows:

Get your financial documentation in order.
Evaluate the local real estate market and financial situation to see if you’re ready to buy a home.
Check your credit.
Apply for preapproval with multiple lenders.
Receive a preapproval letter specifying your maximum loan amount, interest rate and time frame for finding a home.

Is it a hard pull to get preapproved for a mortgage?

Lenders perform a hard credit pull when reviewing your application for preapproval. This action can temporarily lower your credit score but is necessary for the preapproval process. You can apply with multiple lenders within a 45-day window and it will count as a single credit check rather than multiple hard pulls.

Does getting multiple preapprovals hurt your credit score?

Multiple preapprovals won’t do extra damage to your credit score if they’re done within a 45-day shopping period. However, applying for preapprovals outside the 45-day window will potentially lower your score more.

Supported by

What We Know About the Global Microsoft Outage

Airlines to banks to retailers were affected in many countries. Businesses are struggling to recover.

Share full article

By Eshe Nelson and Danielle Kaye

Eshe Nelson reported from London and Danielle Kaye from New York.

Across the world, critical businesses and services including airlines, hospitals, train networks and TV stations, were disrupted on Friday by a global tech outage affecting Microsoft users.

In many countries, flights were grounded, workers could not get access to their systems and, in some cases, customers could not make card payments in stores. While some of the problems were resolved within hours, many businesses, websites and airlines continued to struggle to recover.

What happened?

A series of outages rippled across the globe as information displays, login systems and broadcasting networks went dark.

The problem affecting the majority of services was caused by a flawed update by CrowdStrike , an American cybersecurity firm, whose systems are intended to protect users from hackers. Microsoft said on Friday that it was aware of an issue affecting machines running “CrowdStrike Falcon.”

But Microsoft had also said there was an earlier outage affecting U.S. users of Azure, its cloud service system. Some users may have been affected by both. Even as CrowdStrike sent out a fix, some systems were still affected by midday in the United States as businesses needed to make manual updates to their systems to resolve the issue.

George Kurtz, the president and chief executive of CrowdStrike, said on Friday morning that it could take some time for some systems to recover.

How a Software Update Crashed Computers Around the World

Here’s a visual explanation for how a faulty software update crippled machines.

How the airline cancellations rippled around the world (and across time zones)

Share of canceled flights at 25 airports on Friday

50% of flights

Ai r po r t

Bengalu r u K empeg o wda

Dhaka Shahjalal

Minneapolis-Saint P aul

Stuttga r t

Melbou r ne

Be r lin B r anden b urg

London City

Amsterdam Schiphol

Chicago O'Hare

Raleigh−Durham

B r adl e y

Cha r lotte

Reagan National

Philadelphia

1:20 a.m. ET

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8+ Credit Rejection Letter
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How to Write Credit Denial Letter (Samples & Templates)
A credit denial letter is an official notification written by lenders to inform an individual or business of the rejection of their loan request.. It is usually sent for applications for loans, mortgages, credit cards, and business credit lines.It also informs the applicant why their application was rejected. Typically, lenders will deny loan requests if the applicants are not creditworthy ...
Sample letter to decline a credit card application
An excellent rejection letter is brief, considerate, and to the point. Begin by thanking the recipient for trying. State your decision politely and assertively, giving reasons for it. If you are rejecting a job application, for instance, give a genuine reason for it and encourage the recipient to apply for other positions.
Why Credit Card Applications Get Denied
What you can do: If your credit card application was denied, you'll receive a written adverse action notice within 30 days about why it was denied. If the rejection was due to an application error, you could ask about reapplying. 9. You've had a recent bankruptcy filing.
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PDF. Size: 101 kB. Download Now. The Business Credit Application Rejection Letter template offers a professional and courteous way to inform applicants of their unsuccessful credit request, maintaining a positive relationship for future interactions.
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Elevate every hotel stay from the Premier or Lifestyle Collections with a suite of cardholder benefits, like an experience credit, room upgrades, and more. Receive up to a $100 credit for Global Entry or TSA PreCheck®. Rejected applications are a part of life, but it's important that you take the time to learn from them.
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What We Know About the Global Microsoft Outage
Across the world, critical businesses and services including airlines, hospitals, train networks and TV stations, were disrupted on Friday by a global tech outage affecting Microsoft users.