What Does It Mean When Your Credit Card Application Is Under Review?
You may earn several benefits such as rewards, an initial zero APR, and quarterly bonuses when applying for new lines of credit, which make the credit card application process an exciting and favorable one.
Many credit card memberships gloat over quick decision-making in less than thirty seconds, but this is not always the case. All applications are different, so one applicant may reach an instant decision while others may have to wait for a couple of days to process their application.
No business or individual would want to be notified about their credit card application being under additional review or pending, especially when they need extra funds or want to benefit from an intro zero APR financing period to purchase high-priced items for businesses.
Read further to discover why your credit card application may not be approved instantly and the measures you can take to expedite the process.
What Does ‘Application Pending’ and ‘Under Further Review’ Mean?
“Application pending” or “under further review” means that your credit card issuer has not yet given approval or denied your application, so it is wise not to jump to a conclusion at this point. Your request is still under review by the issuer to reach a decision.
Why Your Application May Need To Be Reviewed Further
Following are some possible reasons for your application to be under further review by a credit card issuer:
- Credit inquiries in the recent past. Inquiries and checks by creditors show up on your credit report when you apply for new lines of credit. As per the Consumer Financial Protection Bureau, these are classified as hard inquiries which impact your credit report and scores since they indicate how regularly you apply for new debts. Recent hard inquiries are counted in a creditor’s decision-making, indicating that a recent debt has been added to your account.
A review of your credit report, creditors evaluating current accounts, and potential lenders pre-screening your report are known as soft inquiries on your report.
- To verify gross income and personal details. Your application may be denied if your income doesn’t meet the monthly or annual income requirement despite having sufficient funds in your account. Banks and lending institutions will not cater to your needs if your income falls short of the required debt-to-income ratio. Card issuers may need additional time to review personal information entered in your credit application.
Before filing and signing your loan application, do your research to determine the minimum earnings required by a lender or bank to see if you meet the criteria.
- Errors on your application. It is suggested to review your application before submitting it to ensure that all information is accurately stated. Any incorrect entries, such as typos or a misspelled name, indicate that your application has been mistaken for someone else’s. Your credit card issuer can take additional time to review mistakes and ask for further documentation like a copy of your driving license or your Social Security number.
- Excess applications. Many credit card issuers receive plenty of applicants due to limited bonuses and time offers. The delay in your request may be due to creditors needing more time to process all applications.
- Forgetting to unfreeze credit reports before applying for new lines of credit. A credit freeze or security freeze permits you to limit means of entry into sensitive data like your credit report to keep you protected from fraudulent activities and credit applications.
A time cap of a few days or weeks can be set before unfreezing your credit to allow card issuers to review your report before approving your application for new lines of credit or other loans.
- There’s a lot of available credit on your existing card with the same lender. Based on your debt-to-income balance and your credit score, lenders set a limit on the credit amount they are willing to lend. If they decide that you have a sufficient credit limit on an existing card registered with them, you can request your creditor to move some of the existing credit to the new lines of credit you have applied for.
What Can Be Done If Your Credit Card Application is Pending?
A few actions may assist you in speeding up your credit card application process:
- Contact customer support. Check your application’s status by contacting a customer support representative. You can find out why your application process is being delayed and if the issuer requires additional documentation or details. Doing this may rectify the mistakes made in your application and speed up your process.
- Regularly check your email. It’s necessary to regularly monitor and check your email and spam in case your issuer reaches out to you requesting additional details.
Shop For Instant Approval Cards Instead
Apply for a credit card that will be approved within a couple of minutes or seconds instead of waiting for several days for a credit card application to be processed and approved or rejected.
There are several instant approval cards to review before you opt for one. Bear in mind that these cards’ offers are usually devised for those with poor or limited credit.
PREMIER Bankcard® Grey Credit Card
The response for the PREMIER Bankcard ® Grey Credit Card application is prompt. No deposit fee is required as it is made for those with less-than-stellar credit.
However, this card comes with several additional costs, such as a yearly fee, a high purchase APR, and a program fee.
Total VISA® Credit Card
The Total VISA® Credit Card response is received online in a few seconds.
There is a possibility to receive instant approval from store credit cards, such as Kohl’s Charge, Lowe’s Advantage Card, and the TJX Rewards® Credit Card.
The Bottom Line
Several measures can be taken beforehand to reduce the chances of your application being terminated or needing further review. It is recommended not to apply for several lines of credit in a short period. Thoroughly review your application to check for typos or errors before submitting it.
Opt for instant approval credit cards if you have a poor credit score, but bear in mind that those cards come with a high fee and an increased APR, so they may not always be the best choice.
Waiting for approval after a credit card application can be worrisome as your application may be rejected for several reasons about your current financial standing.
