If you have recently applied for a new credit card and been refused, it can be quite annoying. Like most of us, you are already imagining that you are using the card even as you are posting the form off. Then after a few weeks’ wait, the letter from the card company finally arrives and it is much slimmer than you were expecting and does not contain that tell-tale hard bit which is the shiny new credit card. But is there something you can do about it? Or must you just accept their decision?

Well, in the letter they send you, the credit card company may tell you why they have refused to give you a new card. There can be many reasons why this is the case. It may be something to do with your circumstances. They often need to see some stability from you, so it may be that you have not lived at your address for long enough, or you have not been in your new job long.

They also look at your existing borrowing. Does your income cover the amount you are trying to borrow? If they think that there may be a doubt about it, then they will not lend to you. Also, if you already have a card from that company they may not lend more to you. After the recent reshuffle of the banks, a lot of them have bought each other out, but the original names have stayed the same. So it may be that you already have a credit card from that company but just under a different name. Or it may be something to do with your credit report.

If it is not clear why you have been refused a loan, it may be possible for you to call the company and get clarification. Wait a day or so to calm down. Do not just pick up the phone as soon as you open the envelope. It is important that you have a calm conversation with them, so that you can find out why you have been refused.

Federal law exists to help you. The company has to tell you why you were refused and they must give you the name and address of the credit reference agency they used. From this information you can obtain a copy of your credit report. It may surprise you to find that there may actually be mistakes in your credit report.

If this is the case then it is very important that you identify these and have them corrected. Get them to put a note in to your report to explain that there is a mistake. So, even if you have been denied a credit card, if you act calmly and rationally, in the long run, it can do you a world of good.

By Jasmina