First of all, don't just call the bank's reconsideration line just to do it and expect that they approve you on the spot. You must understand that there are reasons that the automatic computer system could not approve your credit card application in the first place. Those reasons can be anything from too many credit inquiries in your credit report to something as simple as verifying your information. My point is, it can be anything so be prepared.
- Know your credit scores and history. My favorite two tools are Credit Karma and Credit Sesame. These two tools cover all the three major credit bureaus in the US. They also have apps too, how convenient!
- Credit Karma used to offer credit scores only from TransUnion credit bureau, but at the end of last year, they added another credit bureau Equifax. So now you can get free credit scores and full credit reports from both bureaus.
- Credit Sesame offers free credit scores and report from Experian.
- Answer the question "Why do you apply for this new card?" Avoid saying that because of the sign up bonus. Think of reasons that are more strategic, something like:
- I want to keep my spending separate between my personal and business, or between my daily expenses and travels, etc.
- I love the benefits that come with this card. Be specific! It can be anything from chip-enabled card, no foreign transaction fees for traveling abroad to categories bonus on your expenses.
- Recently, I relocate to this city and it has more outbound flights of x airline.
- I stay a lot at that hotel/resorts.... so on and so forth.
- Be ready to answer the question "Why did you close that account?" I once opened a Chase business credit card, then closed it. Within that year (too soon), I applied for a Chase United Business Credit Card. Although they are different cards, they are all business card. I had to call into the reconsideration line to get it approved. They wanted to know why I closed my account. Be prepared to have good reasons for that! Avoid saying that you close that account because of the annual fee.
- Sometimes bank cannot approve your new credit card because you max out the credits that they give you. A good bank example is Chase. One time, Chase rep asked me if it's okay she could allocate some credits from my other Chase card to this new card in order to approve me. That was a very easy decision to make. However, if not asked, you certainly can see if they can move your credits around. This can lead to your new credit card's approval.
- I have seen this type of request before. Besides moving your credits around, you can also say something about wanting to close another card's account, by comparing the benefits, etc., it may make more sense for you to close that account and have credits available for your new card.
Everyone's situation is different. If your credit score is terrible, credit report has way too many hard inquiries, your business credit report has bankruptcy records... these are hard to ask for reconsideration. But don't lose hope.
I hope these reasons give you some ideas about how to respond to those credit card underwriters. The process can be as simple as 123, and sometimes all you have to say is I want this card because of the benefits that come with the card. Don't over think it!
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