Question of the Week Week of October 6, 2014

Credit Card Reconsideration: How and When To Request It

No one enjoys rejection – especially from banks. It’s pretty frustrating to be informed that you are not eligible for the credit card you’ve been waiting for. The reasons are endless; they tell you it’s because of your recent delinquency, or maybe, it’s because you have too many active accounts open. Regardless, it is important to know that you can get your credit card application reassessed and it is often worth a shot – after all, you have nothing to lose. Doing so is often known as a credit card reconsideration, meaning that you reengage with the same issuer to politely negotiate your way to an approval.

Generally, your initial rejection is issued to you by a computer with an algorithm that is designed to turn down people with select types of credit histories. However, note that issuers are required to reconsider your applications upon request. Under regulation 1002.6 in the ‘Equal Credit Opportunity Act’, it states that creditors shall consider “any information the applicant may present that tends to indicate the credit history being considered by the creditor does not accurately reflect the applicant’s creditworthiness”. Therefore, you can get in touch with an actual human representative to reposition your case by providing more information. They tend to have more empathy and understanding than the computers regarding your application – if you maneuver the process correctly, that is. Thus, if you were rejected the first time, you might have a better shot the second time by requesting a reconsideration.