Tips For Reapplying For A Credit Card You Were Denied

Have you ever been declined for a credit card that you really want? What can you do to make yourself more attractive to the lender? How can you ensure that the next time you apply, you’ll be approved? How soon can you reapply for the same credit card? Here are some tips for reapplying for a credit card you were denied!

1. 1. Grab Your Credit Report

   - Click here to find out how you can do that in Canada for free. If you’re unsure of why you were denied in the first place, obtaining your credit report should clear that up. It will also enable you to see which areas you need to work on to improve your credit.

   2. Lower Your Usage Percentage

   - Your usage percentage is the amount of credit you have compared to how much you have used. Let’s say that you have two credit cards, each with a $5000 limit, and you have a balance of $2,000 on one card, and a balance of $3,000 on the other. In this situation, your usage percentage is 50% since the total credit you have is $10,000, and you've used $5,000 of it. You will want to lower your usage percentage to under 30% to be a borrower that lenders will want to do business with.

   3. Pay Down Debt Faster

   - If you have less debt, a potential lender won’t worry that their additional credit will put you over the edge. Less debt also means that you’ll have a lower usage percentage, and your credit score will begin to climb as you make those payments. Paying down your debts as fast as you can show a willingness to repay what you’ve borrowed, and lenders love that.

   4. Wait Six Months Before Applying Again

   - The reason we like to say wait six months before reapplying is that it gives you ample time to improve your credit situation. A healthy credit score will give you access to better interest rates, and more credit card options

   5. Use A Credit Building Program

   - Seeking the advice of professionals is always a wise thing to do, especially when it comes to your credit. Since credit affects so many aspects of our lives, choosing to have a pro lead the way is one you should be proud of. It’s easy, affordable and it can even help you build some savings. To learn more about credit building programs, click here.

   Remember, it’s not necessarily because of your credit score that you were declined for a credit card. Sometimes your pre-existing debt is what's holding you back. The most important step in this list is obtaining your credit report so that you know exactly what you have to do to ensure application success.

   Have you ever had to reapply for a credit card? How did that work out for you? Let us know in the comments!