Being denied a much-needed card is a big blow. I was shocked a few months back when I received the “you have been rejected” email. “Why did Chase deny my credit card application?” As a finance expert, I researched to find out. Look at the results I have shared!
Why Did Chase Deny My Credit Card Application?
Chase most likely denied your credit card application because you have a low credit score. It’s the most common reason for denial with this bank, although several other causes may exist. You are required to have a minimum good score of 670 to become a Chase credit card holder.
Still, you can apply for the Chase Slate Edge, a card with a low score requirement of 551. That said, most Slate Edge cardholders have a previous score of 600+. Chase has a reputation for vigilance against potential defaulters.
Your financial behavior also counts a lot in the assessment of your application. While completing the forms, you can check FICO charts to interpret your score category.
More Reasons Your Application Was Denied
There can be several other reasons for denial. You should wait for an explanation letter from the bank before losing hope. Meanwhile, re-check your application for the following causes:
Your Credit History
Your credit history is the second most common reason for Chase Bank to reject you. You might be carrying a balance month to month instead of paying in full. It can destroy your creditworthiness quicker than you may realize.
You may be considered untrustworthy if you have a record of penalties, missed due payments, and reminders. You may also be denied if you got cards before and have not used them.
On the other hand, it may be that you don’t have a history altogether. The bank may deny you certain cards if you are just starting your credit-building journey.
You Applied For Excessive Credit
Chase Bank won’t necessarily limit how many cards you keep. Yet, it can determine how much credit it allows you. You may have requested too much credit when you already had a substantial loan.
You Have a Low Income
Although you don’t necessarily have to earn six figures to be deemed eligible, a sufficient income stream is necessary. Issuers don’t want consumers who probably won’t be able to pay their dues.
You should wait several months to re-apply if your salary has just increased. The bank can then mark it as a stable salary.
Error on Your Credit Sheet or Application
It is possible that your credit sheet misled the bank. You can get your statement to see if any payments need to be correctly marked as unpaid.
There can also be a chance that your account is labeled as closed. Contest this error with the bank and ask them to reconsider. You can also inform them if you made a mistake on your application that you can correct.
Besides these reasons, Chase Bank follows a few unwritten rules to allow or disallow charge cards.
Rules to Remember
If you did not know the rules before, now is a good time. Chase Bank does not openly declare these rules. Nonetheless, they are valid.
- The 5/24 Rule: You can not apply for a card if you have already applied for five or more during the last 24 months. This restriction extends to retail cards, too, like Best Buy. The 5/24 rule extends to cards from all banks, not just Chase.
- The 2/30 Rule: You can not apply for more cards if you have already applied for two or more cards within the last 30 days.
- 24-Month Sign-Up Bonus Rule: According to this rule, you can get a sign-up bonus only once during 24 months. It means you can apply for the same card; only you will not get the welcome bonus. You have to cancel your current card if you want to avail it.
- 48-Month Sign-Up Bonus Rule: Chase Sapphire Preferred falls under this rule. If you had one within the last 48 months, you are ineligible for a sign-up bonus. Also, you won’t get it again until you keep that card active.
- No Duplicate Card Rule: This rule is also for the Chase Sapphire cards. You can only have either Sapphire Preferred or Sapphire Reserved cards simultaneously.
Steps You Can Take After Denial
Don’t be devastated if you find the rejection email in your inbox. Chase allows you to re-apply. However, you may do better by preparing more before you take that step.
Call Reconsideration Line
Chase has a reconsideration line you can call to talk to a representative. You might have to explain the application’s purpose to encourage them to reconsider. The reason should be solid instead of just availing the welcome bonus.
Make this call within 30 days of rejection, though. Otherwise, you might have to repeat the application process.
Upgrade Your Credit Score
Work towards paying off your debts diligently. An improved credit history increases your creditworthiness for the card issuing companies. Also, ask for only a few inquiries which would lower your score.
Wait Before Re-Applying
You should wait for the typical period of 60 days before going for it again. Take this time to stabilize and choose a different card closer to your score.
Why Is it So Hard to Get Approved For a Chase Card?
Getting approved for a Chase card is hard because of the bank’s high eligibility criteria. It would help if you had a good to excellent credit score and sufficient income to apply there.
Can I Apply for Two Chase Cards in One Day?
Yes, you can apply for two Chase cards in one day. However, you should wait for 30 days before applying for more cards.
Which Chase Card Is the Easiest to Get Approved?
Chase Freedom Student is the easiest to get approved. You can apply for it even with a limited credit history because it is categorized as a starter card.
Chase rates charge card applications on the credit score, which is why most denials exist. However, you can re-apply after improving your knowledge and spending behavior.