Have you ever applied for a credit card only to be denied? What did you do immediately afterwards? Some people get upset about it and give up on finding the right credit card. Others jump right back in and apply for another card, only to be denied again. The best option is to follow a path somewhere in between.

Let’s take a look at some things you can do if you ever have a credit card application denied. These steps can help you figure out what went wrong and what you can do to increase your chances of being approved the next time.

5 Things to do if Your Credit Card Application is Denied

If you’re denied a credit card, consider doing these five things before applying for another new credit card account.

1. Review the original credit card offer. You might have been declined because you simply didn’t pay attention to the card’s eligibility requirements. For example, if you have a $35,000 annual income and the credit card requires a minimum income of $50,000 then you were likely denied because of that discrepancy. If this is the case, just be more careful the next time you find a credit card offer you want to apply for.
2. Take a look at your credit file. Get a copy of your credit file as soon as possible and take a look at it. What did the potential lender find there? Are there problems you weren’t aware of, like an old debt you forgot about? Clear those problems up before applying for another card. If there are mistakes or signs of potential fraud, contact the credit bureaus and lenders immediately to rectify the situation.
3. Pay down some debt. If you already have several credit cards and loans, you might have too much debt compared to the credit extended to you. This is your debt-to-credit ratio. Even if you meet all of your required payment due dates (such as minimum payments), try to pay down as much as possible before applying for a new card. You’ll look like less of a risk. This might not be an option for you though if you’re hoping to transfer those balances to a balance transfer credit card like the NAB Gold credit card.

4. Close some existing credit cards. Even if you don’t have high balances, having too much available credit can also be a red flag for new lenders. They don’t want to risk you opening up a lot of accounts, maxing them all out at once, and not repaying the balances. Keep cards you use regularly and those you’ve had the longest. But if you have others that you know are a bad deal now or that you simply don’t use, it might be time to close the accounts.

5. Ease off for a while. If you want to increase your chances of being approved for your next credit card, don’t keep applying for one card after another. Every enquiry stays in your credit file for years. If you look like you’re desperately trying to get your hands on credit, you’re going to hurt your chances of actually being approved for a new card.

One of the worst things you can do after having a credit card application declined is rush into applying for another new card. But that doesn’t mean you have to give up hope either. The trick is figuring out why you’re being declined. Only then can you address the problems (or at least the concerns of lenders) and improve your chances for next time.