Credit Card Denied? Here's Exactly What to Do
Step-by-step plan after a rejection — including the best cards to apply for next.
If you were denied a credit card: (1) read the adverse action notice to find out why, (2) get your free credit report to verify the information is accurate, (3) wait 3-6 months before applying again, and (4) apply for a secured credit card instead — they are designed for people who get denied unsecured cards.
Step 1: Read the adverse action notice
When a lender denies your credit card application, they are legally required to send you an adverse action notice within 7 to 10 days. This letter explains the specific reasons for denial. Common reasons include:
- Credit score too low
- Too many recent hard inquiries
- Derogatory marks — collections, charge-offs, late payments
- Too little credit history
- Income too low relative to requested credit limit
- Too much existing debt
The notice also tells you which credit bureau the lender used. You are entitled to a free credit report from that bureau within 60 days of the denial.
Step 2: Get your free credit report
Go to AnnualCreditReport.com and pull the report from the bureau named in your denial notice. Look for errors — incorrect late payments, accounts that are not yours, or balances that are wrong. Dispute any errors directly with the bureau. Removing one incorrect negative item can add 20-50 points to your score.
Step 3: Wait before applying again
Each credit card application creates a hard inquiry that temporarily lowers your score by 5-10 points. Applying for multiple cards in a short period signals desperation and makes future approvals harder. Wait at least 3 to 6 months before applying for another card.
Step 4: Apply for a secured credit card
Secured credit cards are specifically designed for people who get denied unsecured cards. They require a deposit but approve a much wider range of applicants. Your best options:
- Discover it® Secured — Best option if you can pass a credit check. No annual fee, cash back rewards.
- Capital One Platinum Secured — Good if you need a low deposit ($49 for some applicants).
- OpenSky® Secured Visa® — No credit check at all. If you have been denied everywhere, this is your card.