Dealing with denial reasons continues 👈

- If you have been denied multiple times on reconsideration calls immediately after applying and a few days later, it is advisable to wait until you receive the denial letter by mail. Then, try again with a well-prepared case explaining your response to the denial reasons.

- It is essential to work on improving those denial reasons as well.

Information on Reconsideration Lines:

- Reconsideration agents are primarily concerned with your credit file, derogatory marks, and recent inquiries. They do not take into account your past card applications unless specifically requested.

- Systematic declines are real and different from declines based on factors that can be overturned. Some applications are automatically rejected if they do not comply with the bank's rules.

- Only bankers, often with the presentation of documents, can override these bank rules. A reconsideration agent may not be able to help you overturn a systematic decline. Thus, it is best to consider using a banker and opting for a more personalized application process.

- These application systems are often poorly designed, which is why it is crucial to input all information correctly and precisely.

During the Reconsideration Call:

- Take the lead during the call and avoid being bounced around by the agent. Address the denial reasons and articulate your arguments politely.

- "The Credit Card Accountability Responsibility and Disclosures Act (CARD Act) of 2009 requires issuers to explain in writing the reason your application was rejected. It is crucial to have this information before calling the reconsideration line so that you can explain politely to the agent why the bank's concerns are not relevant and how you would make an excellent customer."

- Remember, the purpose of this call is to counter the reasons for denial. Stay focused on addressing those concerns since the only way to turn a denial into an approval is by alleviating the bank's concerns that led to the denial.

Ensure you have a sound argument and avoid simply expressing your desire for the card.

Convincing the representative on the other end of the phone is key.

Study the perks of the card and explain to the representative how you intend to utilize them:

- Phone insurance

- Trip Delay Insurance

- Bonus Spending Category

- No foreign transaction fee

- If it is a co-branded card, emphasize your loyalty to the company.

- Highlight specifically how you plan to use the card.

Explain how you have your direct deposits with that bank, mention the duration of your relationship, and highlight your checking, savings, and authorized user status (if applicable).

For prior cards:

- Make sure to spend on them and pay off the balances before applying. Demonstrating usage is important, rather than simply being approved and then not utilizing the cards.

Denial Reasons:

"Less than 1 year of established credit history":

- This is a strict rule that is challenging to overcome.

- Your best option is to become an authorized user to surpass the 1-year mark or wait until your oldest primary card reaches 1 year or more.

- Individuals with authorized users helping them exceed the 1-year mark often have exceptional first years in their credit journey.

Inquiry Sensitive Banks:

- Some banks may state "Too Many Recent Inquiries."

- Citi, Capital One, Chase, and others are sensitive to inquiries.

- Even the Apple Card by Goldman Sachs has been reported to significantly change the offered limit based on just one inquiry.

- High inquiries are perceived as being "desperate for credit" by banks, which can appear risky.

- If you have many recent inquiries on your credit report or existing cards with that issuer, be prepared to explain why.

- However, some banks have strict rules regarding inquiries, making it impossible to get around. That's why it is essential to plan ahead for which banks to apply to and in what order.

"Insufficient balance in deposit and investment accounts with us":

- This becomes more critical during a recession. It is important to make the banks feel comfortable by having a significant amount of money in their accounts before applying.

- Ideally, aim for a "Low 5" Bank Rating, which means having $10K or more in your account for at least 91 days prior to applying, but at least 31 days if possible.

- While this amount is not make-or-break, it is recommended for the best results.

Please let me know if there is anything else I can assist you with!

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