What to Do When You Are Denied for Too Many Hard Inquiries

Pursuing credit card rewards as a hobby can be a fun, exciting, and lucrative endeavor. Once you figure out the point of credit card rewards, it’s almost as if the world is your oyster. There are so many awesome cards out there, especially if you’re at 0/24 and can basically get any card you want. But eventually, it happens. Somewhere along the way, you’ll reach a point where you’ve scored a lot of signup bonuses and the banks have caught on. It’s at this moment you’ll get your very first credit card denial.

To be honest, I used to get freaked out when I got a denial. It used to feel personal, or as if I had done something wrong. These days, I see it as part of the game. I also know that denials are somewhat fleeting. Usually, when one bank is sick of you and not willing to give you new rewards cards, another bank is more than willing to step up.

 

What to Do When You’re Denied

But, what should you do when you get your first denial? Or when you’re at a point in the hobby where a certain number of denials are imminent? Here’s what I do, and what you should do to put yourself in the best point-earning position possible.

• Wait it out. Most of the time, the best way to ward off denials is to just wait a while. Even Chase will let you earn new signup bonuses as long as you haven’t earned the same bonus within 24 months and you haven’t had more than 5 new cards within 24 months. If you have been a little overzealous with the signup bonuses, wait it out for a while until some of your cards fall off.
• Focus on maximizing the cards you already have. Sign up bonuses are easily the most lucrative way to rack up rewards in a hurry, but maximizing the cards you already have can go a long way, too. Make sure you’re using the cards you have in an efficient way, taking advantage of special bonus categories, and using rewards cards to pay all your bills.
• Try a different issuer. So what is Chase or Amex is tired of you? Try another issuer. Sometimes it’s fun to try out a new bank or card issuer anyway, so don’t be afraid to explore a new rewards program.
• Call the card issuer’s reconsideration line. Sometimes denials are a mistake – or at least negotiable. Other times, banks just need more info to approve you. Try calling a bank’s reconsideration line before you give up. {Related: How to Turn Pending and Denied Credit Card Applications into Approved}
• Offer to shift credit around. Sometimes banks don’t want to offer more open credit but might approve you for a card if you shift limits around. By lowering the credit limit on another card with the same issuer, you can free up new credit for your new card. It never hurts to ask, and all they can say is “no.” A call into the bank’s reconsideration department is the best way to find out.

What do you do when you’re denied for a credit card? Have you been denied lately?