What Is a Credit Card Reconsideration Call and When Should You Consider Doing It?

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Rejection is a part of life. This certainly applies to credit cards. Sometimes, even with a stellar credit score, a bank won't approve you for a new card. The reasons for denial can vary, but the good news is that you have a second shot by calling the credit card reconsideration department.

Many people don't know that the initial rejection isn't necessarily the end of the road for a credit card application. Even if initially denied, you may be able to convince a bank to approve you for a new card. A call to the credit card reconsideration line at least gives you a shot.

Approval is not guaranteed; in some cases, though, you can overturn the bank's original decision. In this post, we'll walk through how credit card reconsideration works, how to prepare for a reconsideration call, and provide some tips to (hopefully) get your application approved.

Credit Card Reconsideration: A Second Chance

Rather than having a human review your information, complex computer algorithms generally get a first look at your credit card application. Banks consider many factors when evaluating a new card application, including (but not limited to) your:

• Credit score
• Credit history
• Income
• Amount of existing credit
• Number of recent applications

Credit: Hassan Ouajibir/Unsplash

The bank has to decide whether extending credit to you is a risk it's willing to take. Sometimes, this automated process makes a mistake, denying an otherwise creditworthy applicant. If this is you, this is where credit card reconsideration comes in.

Most banks have a dedicated credit card reconsideration line that you can call to talk to someone about your denied card application. This phone call will allow you to discuss your application with a human representative.

Sure, many people don't like talking on the phone — especially to a bank representative who may scrutinize their application. However, given the value of many new card sign-up bonus offers, calling the credit card reconsideration line could be well worth the time and hassle.

You've already been told “no” once. The worst the bank can do is stick by its original decision. Calling the reconsideration line has virtually no downside.

Related: Tips for Managing Your Credit Score

How To Get Your Credit Card Application Reconsidered

When you apply for a new card, you typically get one of three responses:

1. Immediate approval.
2. Immediate denial.
3. A version of “We'll review further your application and get back to you.”

Assuming the bank doesn't approve you, you'll want to call reconsideration after denial — but not right away. Wait for the denial letter to arrive in the mail so you can understand why the bank didn't approve you. But you shouldn't delay too long. You typically have a 30-day window during which an issuer will review your application without performing another “hard” credit pull.

Understand the reasons for denial

Regardless of whether you were denied immediately or after the bank took some time to decide, the issuer will send you a letter explaining why. The CARD Act of 2009 requires issuers to explain why they didn't approve you for a new card. These reasons can include:

• Recently opening too many new accounts
• Limited credit history
• Low credit score
• Insufficient income
• Existing debts
• The bank has already extended too much credit to you (in its determination)

Once you receive the letter, review the reasons for denial to understand why the bank didn't approve you. Some are more difficult to overcome than others. For instance, if your credit score is on the low side of the range generally needed for a specific card, convincing the bank to approve you may be challenging. But there are other situations where reconsideration may be relatively straightforward.

Credit: Laura Chouette/Unsplash

Related: A Beginner’s Guide To Building Healthy Credit

For example, I was once unexpectedly denied a new Chase card despite being under 5/24. Chase reasoned that it had already extended enough credit to me. After receiving the letter and realizing this was the only issue, I called to ask Chase to reduce the available credit on my other card accounts. Voila! Chase approved my new card without extending any new credit to me.

Another situation where you may need to argue your case is when you've been added as an authorized user on someone else's card. Sometimes, the automated application review algorithm treats this as having opened your own account.

This issue comes into play when you consider Chase's application rules and restrictions, like 5/24, where total recent new accounts inform the bank's decision. In this case, you may need to call Chase and prove that this isn't your account.

Preparing for your credit card reconsideration call

The purpose of calling the credit card reconsideration department is to argue your case to an actual human. You should prepare what you're going to say. Sometimes, the call is easy. There have been cases where all the bank needed to do was confirm that you personally submitted the application, but expect it to be more involved than this.

If you don't handle phone conversations well, you'll want to rehearse what you'll say. Here's an example opening script:

“Hi, my name is [state your full name], and I recently applied for the [name of credit card] on [application date]. However, I received a letter on [date you got the letter] saying that I wasn't approved. Could I speak with someone to discuss why my application was denied?”

You may be asked various questions about your application. Be polite, but be ready to argue your case well. And once you're ready for the conversation, give the credit card reconsideration line a call.

Credit: Tima Miroshnichenko/Pexels

Reconsideration lines for major card issuers

Sometimes, the bank will provide the reconsideration line phone number in your rejection letter. But if it's not included, or you don't have that immediately available, there are direct lines to most banks' credit card reconsideration departments. Note that they typically have daytime business hours and aren't available 24/7, as with regular bank services.

Tips for getting your application reconsidered

Here are several tips for calling the credit card reconsideration line:

• First and foremost, be polite. No one wants to talk to an upset person. While not being approved for a new card may be frustrating, the decision is ultimately up to the bank and its representatives. You need to convince them to approve this application. The agent you speak to is another human, not a computer algorithm. Be polite and kind.
• Answer questions honestly. This should go without saying. Whether you get questions about your income, new card accounts, or why you want a new card, tell the phone rep the truth. If you've made an honest mistake on your card application (e.g., stating your annual income as $6,000 instead of $60,000), this may reveal itself during the conversation.
• Review your credit report before the call. Once you understand the reasons for denial, ensure they stack up against your credit report. If the bank says your debt utilization ratio is too high, maybe a recent large payment hasn't yet hit your credit report. This gives you something concrete to discuss with the representative. If there are errors on your credit report, you should fix those before calling (e.g., an account saying it was paid late, yet it wasn't).
• Know how you want to plead your case. This ties into preparing for your reconsideration call. If you were denied for having too many new accounts, but two of them are authorized user accounts, be ready to explain this clearly.
• Be creative with solutions. Whether reducing existing credit lines, closing a different card, or something else, be willing to work with the bank. This may help your case immensely.

What If Credit Card Reconsideration Doesn't Work?

Keep in mind that calling credit card reconsideration doesn't guarantee approval. This is especially true in cases where issuers have their own rules for new card approvals, such as Chase's 5/24 rule or Bank of America's 2/3/4 rule. Issuers typically do not budge on these.

If you really want a specific card and the bank won't budge, there may be other avenues to getting it. This may be less desirable, especially when you want a card with a lucrative sign-up bonus, but it remains an option.

For example, I'd like to eventually get the Chase Sapphire Preferred^® Card. In the event Chase doesn't approve me, I could upgrade my Chase Freedom^® card to the Sapphire Preferred. Be sure to ask about the terms before you upgrade, though, as the bank likely won't extend a welcome offer for product changes.

If you were denied for having too many new accounts, the only realistic solution may be to wait. Yes, you will miss the opportunity to get a new card now, but you may be approved on the next try.

Credit: Joyce Busola/Unsplash

Final Thoughts

It's always disappointing to be rejected for a new credit card. However, you should know that you can call the credit card reconsideration line if you're not granted a new line of credit. Read your denial letter, see if you have a good case to make, and give it a shot. Approval isn't guaranteed, but at least you can get a second chance.

Even if the bank doesn't change its mind, don't be discouraged. I've been rejected many times for new cards. It's part of the process. Maybe you didn't get the card you wanted, but it's possible there exists another great credit card that will meet your needs — one you might get approved for if the first option didn't work.

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