3 Reasons Getting Denied for a Credit Card Isn't a Big Deal

It's not the result anyone wants, but it's not going to do much to your credit score, and it's fixable.

After you've spent time choosing a credit card and filling out the application, getting denied is frustrating. Rejection never feels good, even if it's just a credit card company saying it can't approve you for a card. You could also be wondering if this will hurt your credit and what you'll do now for a credit card. Even though it's disappointing, getting denied for a credit card isn't a big deal. Here's why.

1. It doesn't affect your credit score that much

It might seem like a denied credit card application is bad news for your credit score. Fortunately, that isn't the case.

Credit card applications, whether they're successful or not, have little impact on your credit score. The only change that occurs when you apply for a credit card is that the card issuer runs a hard credit check on you.

Each hard credit check lowers your credit score, but only by a small amount. The average consumer's FICO® Score (the most widely used type of credit score) drops by less than five points from a hard credit check. Credit scores normally bounce back from this in a few months. And a drop of just a few points isn't much to begin with.

2. You might still be able to get that credit card

Even if a credit card company says it can't approve you for a card, there could be some wiggle room. A lot of people don't know this, but most credit card companies will give your application another look if you call them to ask. This is commonly referred to as a reconsideration.

To get reconsidered for a credit card, call the card issuer's reconsideration line. You can usually find the number online. If it doesn't come up with a quick search, try calling the customer service number and asking to speak with someone about your recent application.

The representative will tell you why your application was denied. You'll have the chance to make your case for why you'd be a good cardholder, and potentially clear up any of the denial reasons. Depending on the situation, the representative may be able to change the decision to an approval.

3. There are lots of fish in the sea

I assure you that we're still talking about credit cards here and not romantic partners. It's understandable to be disappointed you couldn't get the card you really wanted. However, there are plenty of quality credit cards available. If your application was denied and calling the reconsideration line didn't work, you can always just move on to another card.

The important thing is to move on to a card that you have a strong chance of getting. One common reason people are denied for credit cards is that their credit scores are too low for the cards they want. If you have a credit score of 620, and you keep going for cards intended for consumers with scores of 670 or higher, you could keep getting denied.

That's not good. Each application involves a hard credit check, and while one is no problem, they can accumulate and have a bigger impact on your credit. It's also simply a waste of time. That's why it's recommended to look for credit cards that fit your situation. For example:

• If you're completely new to credit: Check out starter credit cards that don't require any credit history.
• If you have a low credit score due to some previous issues: Try credit cards for bad credit.
• If you've spent some time working on your credit: Look at credit cards for fair credit.
• If you have a high credit score: Go for the best credit cards you can find.

It can be rough the first time you get denied for a credit card. Remember that it's not as bad as it seems. Your credit score will be fine, and you could either get a reconsideration or apply for a different card. In the grand scheme of things, it's more of a nuisance than a real financial issue.