I'm Proud of Me Today a Successful Reconsideration Letter

When Shannon and Josh were down on Hilton Head several weeks ago helping Katy with carpet, tile and cabinet selections for the new villa (yes, we finally closed), we spent some time on the kids credit card situation. It appeared Josh was in position to get his first Starwood Preferred Guest card.

At 24 years of age, we struggled to get Josh his first card but finally got him in a Citi AA card about one year ago. He was able to churn two more Citi cards but was still gun shy of applying for the SPG card, as it was our first attempted card and we got a denial the first time through.

This time we checked Josh's credit score beforehand (745 up from 650 in one year) and the number of inquiries on his report (under 6) before applying for the SPG card. Credit scores are free, if you use the blog ads on the right hand column of the blog, and cancel within the trial period.

Based on the info we saw on his report I suggested we apply and did. To our surprise Josh was denied the SPG card based on their (AMEX's) mystical scoring system and his supposed lack of credit.

Time for Dad in law to step to the rescue with a Reconsideration letter. I've written about them before.

If you don't like the results of a credit decision you can easily ask for reconsideration. Just send back a well worded letter to the address on your denial and restate your case. I didn't give Amex any new information they didn't have on Josh's application, I just stated it in real positive terms.

Josh and Shannon are both employed as professionals. They have never been late on a payment. They do not over use their credit and yes, agreed they have limited credit, but all good. I made sure that Amex knew that I knew his credit score and stated it in the letter. (I wrote the letter for Josh in his first person)

Here is what it looked like:


To: Blah Blah Blah

RE: Credit Card Reconsideration Request

To Whom it May Concern:

I was surprised to receive an online denial of my recent SPG Amex card application reference # 123456987654.

I am asking you to reconsider your decision based on the following facts:

My wife and I are both employed full time as professionals and have an annual income in excess of $___________.

Although our past credit is limited, you can see from our credit report, we have never missed a payment or been late. I know, as I checked my credit score just before applying for your card to insure it's accuracy. I note the current credit score is 745 which is better than over 55% of the public and is considered good credit by the credit reporting agency.

We are not heavy users of credit and never plan to be, but have heard from many sources that your card is the best rewards card on the market today, and we believe we are responsible credit risks and deserve a chance with your card.

We do not need a large credit limit and would be happy with a small credit line at first to prove to you our reliability.

Although I am not including our most recent paystubs, I can send them to you if you need them.

I look forward to your reconsideration and receipt of my new Starwood Preferred Guest Amex card.

Respectfully

Josh Xxxxxxx

No new information for them , but just restated the case, and Josh was approved for the SPG card.


Unless the reason for denial is a hard and fast rule like: "you have submitted multiple applications within a given time frame, "

every denial letter is worth a reconsideration letter.

If your reason for denial is too many inquires, state the above facts and a similar statement:

" yes, I have applied for recent credit cards, but note that there is no increase in my credit activity or balances. I am a very conservative borrower and use my credit selectively and judicially. I am looking for the right credit card. That is why I applied for your card"

If the reason is too high of balances on your current cards, pay down the balance with a balance transfer to a biz card which does not show on your personal report or pay it down with another means and use this:

"In the past I did have a higher balance, but as you can see by the provided new balance, I have brought my debt back to under 50% of my available credit as suggested by many credit professionals (maybe you can say 35%) And note, at no time was I ever late with a payment."

Late payment in the past, give the following truthful reason:

"I acknowledge a past delinquent payment during a hard time in my past, but you will note in the last xxxx months or years, I have returned to timely payments of my credit. The unusual circumstances of the past are over. No lender has ever lost money on me as they have always received payment"

Bankruptcy, same as above, but with less frequent positive results, unless more time since the incident and you must provide additional details and documentation of your renewed credit abilities.

Collection requires documentation of satisfaction in most cases.

"I did have a medical collection in the past which has now been cleared. The primary reason for the collection was the delay in processing insurance claims or workers comp claims and the long drawn out process of medical reimbursement and payment. I am sure, you too, have faced the high cost of medical treatment and lenghty delays in insurance payments and reimbursement"

Landlord issue could be lousy paying roommate, lousy housing conditions contested what ever the truth was, but emphasize that the problem is now over, the cause corrected and you are back on your feet as evidenced by your current credit repayment history.

It only costs you 44 cents for the stamp and a few minutes of your time to restate your case, and the positive reasons for reconsideration. Always tell the truth and emphasize the positive sides of your reasoning.

I think in many cases the borderline decisions are now approved, as you have taken the effort and shown the initiative that indicates your credit is as important to you as it is to the credit card provider.

I'm glad Josh has his SPG card. We all should have one, that play this crazy travel game. I'm glad my reconsideration letter got the job done, and hope the tips above will help some of you as well.

Rick