My Credit Card Application Was Denied. What Should I Do?

by Venus Zoleta, on category "Credit Card"

August 14, 2018


Credit Card Application Rejected | MoneyMax.ph

Turned down for a credit card? It’s natural to be disappointed and paranoid—what if you’re rejected again on your next credit card application? But you don’t have to wallow in despair. Just because you’re denied for a credit card doesn’t mean you can’t be approved in the future.

You can take steps to ensure that your next attempt at getting a credit card will be successful. Here’s what you can do to raise your chances of getting approval on your credit card application.

Check Your Credit Card Application Status

Credit Card Application Rejected | MoneyMax.ph
After you’ve applied for a credit card, the bank will contact you after one to three weeks about its status. However, in some cases, banks take longer than usual to process a credit card application, leaving applicants uncertain about whether they’re approved or denied for a credit card.

If you aren’t sure if your credit card application is declined, you can check its status by calling the bank or making an online inquiry.

Here’s how to check the status of a credit card application with some of the major issuers in the Philippines.

BDO Credit Card Application Status Inquiry

BDO Credit Card Application Status | MoneyMax.ph
To know your credit card application status with BDO, simply enter your TIN or SSS number on the BDO Application Status page.

BPI Credit Card Application Status Inquiry

You can find out the status of your credit card application with BPI through its phone banking and online banking facilities.

Steps to Check Application Status via BPI Phone Banking:

  1. Call the BPI customer hotline at 89-100 (Metro Manila) or 1-800-188-89100 (domestic toll-free).
  2. Press 2 (for Credit Cards).
  3. Press 2 (for Credit Card Application Status Inquiry).
  4. Key in your 10-digit application ID number.

Steps to Check Application Status via BPI Online Banking:

  1. Log in to your BPI Express Online account.
  2. Click Other Services > Application Status Inquiry > Credit Card.
  3. Enter your credit card application date.
  4. Choose the appropriate response from the drop-down list next to “Application Submitted to.”
  5. Enter your contact number.
  6. Click Submit.

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Metrobank Credit Card Application Status Inquiry

If you filed a credit card application with Metrobank, you can check its status by calling the bank’s customer service hotline at 8-700-700 or the domestic toll-free number at 1-800-1-888-5775. Alternatively, you may send an email to customerservice@metrobankcard.com.

Citibank Credit Card Application Status Inquiry

Here’s how to find out the status of your Citibank credit card application status:

  1. Dial 995-9999 to call the Citibank credit card customer care hotline.
  2. Press *2.
  3. Press 1.
  4. Enter your application ID or TIN.
  5. Press #.

Find Out Why You’re Denied for a Credit Card

Credit Card Application | MoneyMax.ph
The bank may or may not tell you the reason your credit card application got rejected. Regardless, it helps to know why it happened to avoid making the same mistake in your next application and raise the likelihood of getting an approval the next time.

Common reasons people get denied for a credit card:

  • Too low income
  • Unstable job history
  • Unpaid credit card balance
  • Incomplete or incorrect information on the credit card application form
  • Bad credit score
  • Too much debt

Wait At Least Three Months to Reapply

Got denied for a credit card recently? Don’t apply for another credit card too soon. Financial experts recommend waiting three to six months to apply again.

Applying for too many credit cards within a short period can hurt your credit history. You’re likely to get declined again, too. Each time you apply for a credit card, the bank conducts a credit check and makes an additional inquiry on your credit report. Having several inquiries on your credit report is a red flag for banks—it shows that you’re desperate and struggling to get approved for a credit card.

Check Your Credit Report and Improve Your Credit Score

Credit Card Application - Credit Score | MoneyMax.ph

Photo by CafeCredit via Flickr, Creative Commons

Before you apply for a credit card again, take the time to review your credit report, correct any error, and work on increasing your credit score.

Regardless of the reason your credit card application got denied, get a free copy of your credit report from the Credit Information Corporation or any of its accredited credit bureaus once a year. Check the accuracy of information on your credit report—an error may have caused denial on your credit card application. If you spot an incorrect negative remark, dispute it with the concerned lender for correction and request to update your credit report.

If your credit report accurately shows a history of loan default or high credit card balance, it’s time to break those bad money habits that damage your credit score. Improve your credit score by paying down your balances, settling your overdue accounts, and reducing your loan and credit card applications.

Apply for the Right Credit Card

Credit Card Application | MoneyMax.ph
After getting your previous credit card applications denied, make sure to find the right card this time—one that you’re most likely to be approved for and matches your financial situation.

Check the bank’s eligibility requirements, particularly the annual income requirement. For example, BDO, BPI, and Metrobank require a minimum annual income of PHP 180,000 to get a basic credit card from them. Application for premium credit cards requires higher annual incomes.

Also, check if the bank accepts only applications from those with a principal credit card, such as in the case of HSBC. You won’t get approved for an HSBC Red Mastercard, Gold Visa Cash Back, or Platinum Visa if you don’t have a locally issued credit card in the past 12 months.

Rather than check each bank website and spend hours researching, make your search for the perfect credit card more convenient with an online credit card comparison tool. In just a few clicks, you can refine your search according to credit card providers and type of credit card, as well as sort the results based on annual income requirements, interest rates, and annual fees.

Get a Secured Credit Card or a Prepaid Card

If your current income and credit score aren’t good enough to qualify for a credit card, consider alternatives such as secured credit cards and prepaid cards. These cards allow cashless transactions like regular credit cards do. Approval is also easier plus it’s a great way to build a good credit history.

Secured Credit Cards

No income documents are needed to get a secured credit card. Banks also don’t conduct credit checks for secured credit card applications. Instead, you’ll be required to open a savings or time deposit account with the issuing bank and make an upfront security deposit. This will serve as your collateral to the bank, which means when you miss your credit card payment, the unpaid amount will be deducted from your bank account.

Here are the secured credit cards in the Philippines you can apply for:

  • AUB Secured Credit Card
  • BPI Express Start
  • Metrobank Save and Swipe
  • RCBC Bankard InstaCard
  • Security Bank Fast Track

After a year of using your secured credit card responsibly, you may request the issuing bank to upgrade it to an unsecured one.

Prepaid Cards

Paymaya Prepaid Card | MoneyMax.ph

Instagram photo by @roegeoh

With a prepaid card, you enjoy the functionalities and perks of a traditional credit card, except that your spending is limited to the amount you’ve reloaded in it. So you can continue using the card, you’ll have to top it up before your balance goes down to zero.

Some of the most popular prepaid cards in the Philippines include Paymaya, GCash Mastercard, Smart Money Card, and YAZZ Card. Banks such as BDO, BPI, EastWest Bank, PSBank, and UnionBank also offer prepaid cards.

Final Thoughts

Have you experienced getting approved for a credit card after several rejections in the past? Tell us what you learned and what you did to make it right. Feel free to comment below!
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