Credit Decline: What steps you can take after being denied credit
For anyone who has experienced it, being denied credit can be stressful.
Whether being denied for a consumer credit card or other credit, it can be discouraging as it might seem like a once-promising option is no longer within reach. After a time-consuming and involved credit application process, the decline process involves an impersonal formal decline letter which rarely includes advice on how to improve credit to help people achieve their financial goals.
Why the Credit Decline?
For those being denied credit, it is important to understand the reasons for the credit decline. In the case of credit cards, credit card issuers are required to disclose the reason why they declined a credit card application in the rejection letter.
Some of the more common credit decline reasons include:
- Your credit score is below the level required by the credit issuer.
- Your income is too low or unstable, making you a high risk of being unable to make minimum payments.
- You are carrying overly high credit balances.
- You have too much credit.
- You have a recent delinquency.
- There is an error or negative information on your credit report.
While this is not a complete list, the first step involves understanding exactly why the issuer made the credit decline.
A Helpful Resource
It can be complicated wading through the issuer’s notification letter, understanding the terms and details, and making contact with the issuer.
Just imagine if instead of trying to figure out the reasons, and how to resolve any issues, you could move past your credit decline with the assistance of a personal financial health coach.
GreenPath has partnered with eGain to create a Virtual Financial Coach.
- The Virtual Financial Coach helps people looking to improve their credit scores, move forward after a credit decline, pay down debt, and build healthy financial habits.
- A secure experience offering personalized financial advice 24/7 on any smartphone or computer, the Virtual Financial Coach uses the most advanced AI technology to deliver GreenPath Financial Wellness guidance.
- Through text-based conversation, users receive empathetic, caring coaching to help them establish financial goals and identify actions they can take to reach them.