My Credit Score Is Above 800. Here's Why Wells Fargo Denied My Credit Card Application

Not long ago, I came across a Wells Fargo credit card that seemed perfectly attuned to my spending habits. It didn't have the best sign-up bonus I'd ever seen, but the card's bonus rates seemed high enough to earn solid rewards on categories that my other cards haven't captured.

My credit history is flawless, and my FICO® Score, according to Experian, was above 800. Both strengths made me think getting the card would be a slam dunk. Imagine my surprise when Wells Fargo rejected my application shortly after I submitted it. As if that weren't bad enough, my credit score dropped afterward due to the new inquiry.

So what happened? How can someone with an 800 credit score get denied a credit card? The answer might surprise you.

Why my application was rejected

Simply put, I've opened too many credit cards in a short(ish) timeframe.

I opened two new credit cards this year (both in the last six months), which puts me at five new accounts over the last two years. I also tried for (but got denied) a popular American Express card last year, and I recently sustained a hard inquiry during the application process for my new apartment.

While having too many hard inquiries doesn't always crush your credit score, they can dissuade credit card companies from issuing you a new card. One reason is that the card issuer may suspect you're churning credit cards. This involves opening new cards to get their sign-up bonuses, only to cancel the card once the bonus is spent.

However, since this particular Wells Fargo credit card didn't have a high welcome bonus, I don't think this was the leading reason.

More than likely, Wells Fargo saw my number of credit cards and suspected I wouldn't spend enough on this card. Credit card companies want loyalty. They want you to do most of your spending on their cards. This can earn them more money -- through processing fees and credit card interest -- and keep you loyal to their institution.

Since I'm clearly not loyal to one card issuer, never carry a balance, and open cards frequently, my application was probably a dud according to Wells Fargo's algorithm.

What to do if your application is denied

If you have a high credit score and few (or no) recent hard inquiries, you could try calling the credit card issuer and getting more details on its reasoning. Often, credit card applications are fed through an algorithm, which may or may not have gotten your situation right. Calling a human representative could help draw attention to your strengths and help you get the credit card.

If you do have several recent inquiries (or new credit cards), let some time pass, then reapply. Hard inquiries stay on your credit report for 24 months, but you might not even need to wait that long before reapplying. For example, last year my application for an American Express card was denied for the same reason as my most recent Wells Fargo rejection. I waited seven months before reapplying and was accepted this year.

Credit card issuers may even have their own unique application rules. For instance, you might not qualify for new Wells Fargo cards if you've opened one of its other cards within the last six months.

As for this Wells Fargo credit card, I'm going to wait until a few of my hard inquiries leave my credit report later this year, then reapply. Until then, I can still rely on a few of my favorite cards to help me maximize rewards.