Your complete guide to reaching out to a credit card reconsideration line

Credit card issuers hold the ultimate decision on whether your application is approved, basing their choices on factors like your credit score, income, and relationship with the issuer. To maximize your approval chances, it's essential to apply for cards suited to your credit profile and familiarize yourself with credit card application guidelines.

That said, rejections are inevitable.

However, what you might not realize is that even if your credit card application is declined, there’s often an opportunity to challenge the decision and possibly have it reversed. A simple call to the reconsideration team could turn that rejection into an approval.

Here’s everything you need to know about calling the credit card reconsideration line.

Understanding how credit card reconsideration works

Although credit card issuers still use human underwriters, most decisions are made automatically by a system that can sometimes make errors. Due to the potential risks and costs of approving high-risk applicants, these automated systems tend to err on the side of caution, leading to the rejection of applicants who are creditworthy and meet the necessary criteria for approval.

This is where the reconsideration team comes into play. While not all issuers have a dedicated reconsideration department, most major card issuers employ underwriting agents with the authority to review denied applications and overturn the decision if there’s a valid reason to approve the applicant.

Your chances of success largely depend on the reason for your rejection (see the case studies section for more details). However, if you believe there’s a small chance of reversing the decision, it’s worth trying. This is more likely when the denial was based on factors open to interpretation, rather than a clear violation of the issuer’s rules.

When is the right time to contact a reconsideration line?

Typically, your credit card application 'expires' 30 days after submission. If your application is denied and you want to challenge the decision, it’s better to act sooner rather than later. You can wait for the bank’s denial notice—if it’s not immediate—but you might also have to wait if your application is marked as pending.

A pending application occurs when the system can't provide an immediate decision. You may see a message like, 'We’ll let you know our decision within 7-10 business days.'

The only situation in which I'd suggest calling about a pending application is if you urgently need the card. For example, if you have a big purchase coming up that would instantly fulfill the sign-up bonus requirements, or if you’re about to travel and want the card before it sits unused in your mailbox for a week or two.

In situations like this, explaining your urgency and requesting expedited shipping for the card can be beneficial.

How to approach a reconsideration agent

Before contacting a reconsideration agent, it’s crucial to prepare and have a clear idea of what you want to say. I always begin my calls with something like this:

"Hi, I recently applied for (insert name of card) and was surprised to see that my application (was rejected/wasn’t immediately approved). I’d like to discuss this decision further and possibly have it reconsidered."

Under the Credit Card Accountability Responsibility and Disclosures Act (CARD Act) of 2009, issuers are required to provide a written explanation for any application rejection. It's essential to have this information before you call, as it will help you politely address the reasons given by the bank and explain why those concerns are not applicable, emphasizing that you would be a strong customer for them.

Keep in mind: the purpose of your call is to address the reasons for the denial. Stay focused on these points, as the only way to turn a rejection into an approval is to resolve the bank's concerns that led to the denial.

Understanding why your application was denied

Simply saying, 'I really want this card, is there anything you can do?' won’t cut it. You must understand the specific reasons for your rejection and come prepared to challenge them. Let’s look at two common scenarios.

A delayed update to your credit report

Adding a spouse, sibling, or child as an authorized user on your credit card is a great way to help them build credit, and for spouses, it can also help meet the minimum spending requirement for a new card. However, being an authorized user could negatively impact your 5/24 status with issuers like Chase.

The same issue can arise if you've been added as an authorized user and an automated system mistakenly flags these new accounts as your own, potentially pushing you over Chase's 5/24 limit. You can ask the customer service representative to exclude the accounts where you are simply an authorized user, which should clarify that you're not actually over the 5/24 threshold.

Excessive total credit

Every bank has its own formula to determine how much total credit they're willing to extend. You won’t know the exact threshold until you reach it, at which point you might receive a denial stating that the bank has already extended you the maximum allowable credit.

The good news is that this is typically one of the easiest denials to reverse.

Simply reach out to the reconsideration line and offer to transfer credit from one of your existing cards to the new account. This way, you can secure approval without the bank needing to extend any additional credit.

Just remember that each card has a minimum credit limit (usually $1,000 or more), so you'll need to move enough from your other cards to open the new one while leaving sufficient credit on the original card. For instance, you could say something like:

"Since I have $15,000 available on my (card name), could you transfer half of that to open this new card? That way, no new credit is issued, but I can still enjoy the benefits of the new card."

When reconsideration calls won’t help

Reconsideration is most effective when the application is missing critical information (like in the case of our authorized user example) or when the rejection reason is subjective. However, contacting the reconsideration line won’t help if you’ve violated specific hardcoded rules that issuers can’t and won’t change.

For example:

• Reconsideration can’t reverse a denial based on Chase’s 5/24 rule (unless, as mentioned earlier, you aren’t actually over 5/24).
• Some cards require a minimum of one year of credit history for approval, and this cannot be overridden by an agent.
• Issuers may have policies on how many cards you can hold or how many you can open within a 30/60/90-day period. These are "hardcoded" rules that can’t be changed.
• Recently, American Express uses a system where the representative simply resubmits your application with brief notes asking for reconsideration. This means you won’t have the opportunity to speak directly with the decision-maker, and the outcome may remain unchanged.

Lastly, calling reconsideration is likely to fail if you become confrontational. Even if you feel the reason for your denial is subjective or unjustified, being argumentative will not increase your chances of approval.

The bottom line

Being denied for a credit card is disappointing, but it doesn’t have to be the end of the road. Take some time to carefully review your denial letter to understand why it happened, prepare your case, and then call reconsideration. There's a chance your denial could be overturned, though it's not guaranteed.

Regardless of the outcome, there’s a significant potential benefit in making that quick phone call.