SAN FRANCISCO—When a financial institution rejects requests for a new credit card, there’s a very good chance those account holders will take their business elsewhere.
A new report from NerdWallet reveals that most Americans (70%) say they would turn their back on an FI that rejected their credit card application and would not apply for another credit product from that institution.
“And many say a rejection would give them a darker view of credit card issuers in general, as well as of the overall state of their own finances,” NerdWallet said.
NerdWallet commissioned a survey of more than 2,000 U.S. adults in September 2016, conducted online by Harris Poll. The company asked respondents how they’d feel and what they’d do if they were rejected for a credit card. Key findings:
- More than one-third of Americans (35%) believe, incorrectly, that credit card applications are commonly rejected because someone already has too many cards.
- Almost half of Americans (48%) say they would be too embarrassed to share a credit card rejection with friends and family.
- About one-third (34%) say people who have had a credit card application rejected are irresponsible with their finances.
- More than half of Americans (51%) don’t know that credit card issuers are required to tell applicants why they were rejected.