When it comes to applying for credit cards, I put us in the middle of the pack. My wife Sharon and I sign up for enough cards to provide points for most of our trips, but at least one of us I is usually under 5/24.
I try to do as much as I can to keep bank interactions at a minimum. This is primarily because I don’t want to make Sharon get on the phone, which she hates (because she doesn’t know everything about the card she’s calling about and why she applied for it. That’s my job).
Getting to the point, this is why I usually don’t call the bank reconsideration line. For those of you who aren’t familiar with the term, this is the bank department that deals with credit card applications. More specifically, these are the people who look at applications that weren’t automatically approved by the bank’s AI system. If you flunk one of the criteria but aren’t an immediate no-go, your application goes to a human who looks over your credit report, history with the bank, and other parameters to decide if you should be approved for a card or denied.
Don’t immediately call
Many websites tell you to immediately call the bank reconsideration line if you don’t get instant approval for a new card. I’m here to tell you you don’t have to.
While many of our cards get instant approval, as we both experienced with the Capital One Venture X, occasionally, our applications go into pending status. That’s almost expected, with the number of cards we have from AMEX, Citi and Chase.
Instead of instantly calling to find out what’s wrong, I exhibit patience.
For instance, Sharon applied for a new card from Chase. Much to my disappointment, this was the reply after I clicked send.
At this point, I could have picked up the phone and called Chase, but I wasn’t in any hurry to be approved. I honestly feel that calling a bank is showing your hand. Why not wait for the bank to tell you the problem instead of calling them to plead your case when you don’t even know what the issue is?
In fact, the only time I had a problem getting approved for a card was with the Chase business division when they wanted proof that Your Mileage May Vary was a real business.
Wait for it…
I had time and waited for Chase to contact me. I kept looking online to see if the card showed up in our account, which oftentimes is the quickest way to see when you get approved.
Instead, it was an email from Chase informing me that we were approved.
Afterward, I received another email from Chase notifying me that there was a letter waiting in our account.
When I checked, it was a notice that to approve the IHG Premier Card, Chase moved $2,000 from our Chase Sapphire Preferred credit limit.
Apparently, the reason we didn’t get instant approval is that we’ve reached the maximum amount of credit Chase wants to give us. While Chase doesn’t have a number of cards you can hold, they will limit the amount of outstanding credit amongst all of your accounts.
The CSP had a credit limit to spare, and we’d never max out that card. If I had called, I probably would have asked to move 5K to the new card, which would make it easier to meet the spending requirement without making multiple payments.
I’m not saying calling a bank right away is the wrong thing to do. But it’s an unnecessary step if you’re not looking to use the new card right away. Oftentimes, banks find a way to get you approved for a card without you having to speak with them at all.
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2 comments
This isn’t good advice. You have one instance of this working in your favor when the vast majority of instances don’t work this way.
Calling the reconsideration line doesn’t show any hand besides the reason the bank denied you. If you wait and the reason was max credit, you may just stay denied.
I was initially denied the Ritz Carlton Visa and wanted it before it closed for new applicants. I immediately called because I knew this issue was that I was at max credit with Chase and they confirmed it. RC Visa requires $10K so I simply told them to move $5K from 2 different Chase cards and was immediately approved.
There’s zero point in waiting. None. It can only be a drawback in waiting. You wait yet keep checking the account to see if it shows up or checking your email and a quick call does the trick.
Besides that, if you’re moving credit around, you want to tell them which cards to move the credit from.
I was done with my RC approval with a 5 min call.
/agree with Busyman…your advice here is silly. You’ve also left out important information – how long did you wait for the approval? 2 days? 9 days? 29 days? “Showing your hand” makes no sense. What, you don’t want them to know that you’re interested in getting the card you’ve applied for? I’m a fan of your posts, but I remain unsure of the reason for this one.