What Does It Mean When Your Credit Card Application Is Under Review? Reasons & How To Resolve

Credit Card Application Is Under Review

Your credit card is under review when the card issuer has not yet approved or denied your application. The bank is still reviewing your card application, verifying your KYC documentation and credit scores so that they can make reasonable decisions. Based on this, they can accept or reject your application. 

If you do not get an instant decision or reply on your credit card application, remain still and wait. Also, don’t panic or jump to the conclusion that your application has been denied. There’s still time and be hopeful. Issuers need time to verify your KYC documentation and credit scores.

Under the Credit CARD Act rules, lenders need to assess your ability to pay the debt you can accrue with your card to grant the account. Meaning they’ll determine what you wrote down as your income on a credit card application. It may delay due to the workloads of the officers, typo- errors, among other reasons.

It’s vital to understand your issuers’ credit card approval process plus what to do in such a situation, and why a particular application may take longer than others.

Read on for more information on credit card applications. 

How Much Time Does It Take To Review A Credit Card Application?

Review A Credit Card Application

Unfortunately, there is no specific timeline for credit card approval since it majorly depends on your card issuer. For some, it’s instant, or you can be given a timeline—for instance, a week. You can get the approval before the end of the week or after due to specific reasons within your card issuer’s control.

In several cases, when you apply for a credit card online, you will learn the status of your application within a few minutes. If your application goes through, you can make online purchases with your credit card number right away. However, it might take 7 to 10 days to get a physical credit card via your mail.

Sometimes it delays because the credit card issuer needs more time to review your credit card application and reach a final decision. Meaning you will receive a message that your card application is “under review” or “pending.” These pending credit card applications can be resolved within a few days, but it may take two weeks for many lenders to complete the review process.

Always call your issuers into the reconsideration line to see if you can give additional information or clear some things up to get approval. Most of the time, you can end up getting approval just by calling into the reconsideration line to check your application status. 

Reasons Why Your Application May Need Further Review

Reasons Why Your Application May Need Further Review

There are no hard facts as to why your credit card application did not get approved instantly. However, some common reasons indicate clearly why an application may need to go through further review. Some include:

Recent Credit Inquiries  

If you apply for more than one credit card within a short duration, your credit report will be questionable. Issuers may wish to look into your recent credit inquiries to determine if you plan to get more debt than you can pay off.

Income And Personal Information Verification

Although payment doesn’t affect your credit score, it may involve a new card application. The card issuers usually check your debt-to-income ratio. i.e., all your monthly debt payment divided by your gross monthly income. Then, decide if you can be able to repay debt. Also, they will take the time to look into the details listed on your card application.

Credit Card Application Overflow

Sometimes, the card issuer receives several applications due to limited offers plus bonuses. So, they will need more time to process all the applications, thus causing delays.

Mistakes On Your Card Application  

You had typo errors when you submitted your application without your knowledge. It can delay the issuer verification process. In such a case, consider calling your issuer to provide additional information or documentation like a copy of your driver’s license or social security card.

You Have Frozen Your Credit Reports

Freezing your credit reports is a smart move to protect yourself from identity fraud. But it would be best if you unfroze them before applying for the credit card to allow your issuer to access them. Remember that you can set up a few days or a week before the freeze is reinstituted.

You may have too much credit available on an existing card with the same issuer

Many issuers set a specific limit on how much they will extend you based on your credit scores plus the debt-to-income ratio. If they find out that the credit limit on your existing card with them is sufficient, you will have to get to the card issuer. Then, request that some of that current credit line be moved to your new credit card application.

The Decision Rendered But Not Yet Conveyed

Sometimes, the issuer makes an instant decision on your application, but the application still shows that it went under review. The only way you can get clarification is by contacting the issuer and inquiring about their decision. Then, wait for a few business days for the letter to arrive in your mail.

What To Do If Your Credit Card Application Is Pending?

What To Do If Your Credit Card Application Is Pending

While it’s essentially not within your control to speed up the card issuer decision process, some of these actions may help;

Call Customer Service  

Contact the customer service line to check the card application status. You may inquire why your application is still pending and see if you can give more information or documentation. The decision process may speed up by remedying any mistakes you might have made on your card application.

Log Into Your Online Portal

If you have an existing account, log into your online portal and check your credit card application status. Some card issuers offer an application status portal also to allow you to check on your pending application.

Monitor Your Email

The card issuer may reach out to you through email with additional questions or requests for other documentation. You must check your emails regularly and be prompt with providing any additional information upon request. Be sure also to check your spam folder.

Watch Your Mail

Many lenders send information regarding their application decisions via the mail. Sometimes to congratulate you on your approval or explain in detail why your credit card application was rejected. Check your mailbox often to ensure you haven’t missed any letters.

Ways Of Improving Your Chances Of Getting Credit Card Approval?

Applying for a credit card is one thing, but understanding what the issuers are looking for before submitting your credit card application is the first step to success. Here are a few things you can take into consideration to increase the chances of your card approval;

Check Your Credit Scores

Your credit report will help you determine which card offer will suit you best based on its scores. Credit card issuers have guides for poor credit, fair credit, good credit, and excellent credit.

Improve Your Credit Scores

Sometimes, your credit score isn’t where you want it to be or should be to get the approval. So, you will need to put extra effort into improving your credit score quickly for future support. Your scores will rise if you can make payments on time, avoid new debt, and keep your balances low on existing credit cards.

Credit Card Pre-Approval Offers

This can be the best way to access a new line of credit as you are more likely to been approved if you have been preapproved.

Include All Your Income In The Card Application

Card issuers consider the credit scores to indicate creditworthiness, although these scores don’t reflect your income. Issuers use the revenue to calculate your debt-to-income ratio, which will help determine your ability to repay debt. Increase income or decrease debt to change your debt-to-income ratio.

Choose Where To Apply

Before you apply for a credit card with any issuers, shop around and make a comparison. Understand their terms and condition. Choose where you’ve better chances, a great offer that suits your needs, and apply. 

What Are Some Of The Reasons Your Credit Card Application Is Denied?

Whenever you apply for a credit card, you’re always hopeful or confident that it will get approved. But in reality, there are two outcomes; it can either be accepted or rejected for one reason or the other. Here are some of the reasons your card can be denied:

1. Your credit score is not high enough

2. Low income or unstable

3. Too much existing debt

4. Numerous recent credit applications

5. Insufficient credit card

6. Delinquency on your credit file

7. You’re not eligible age-wise

8. Error or mistake on your credit card file

Final Thought!

If you apply for a credit card, waiting to receive approval, especially after getting the “application under review” message, can be nerve-wracking. But, when you understand your card issuer’s credit card approval process plus, delay reasons it will calm you down. Card application under review is not a rejection, be hopeful. If it’s denied, don’t give up; learn how to increase your approval chances and the reasons in our article, then work on them. 

Last Updated on September 10, 2021 by Musa D

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