Basic criteria to apply for US citizenship is to be a green card holder in US. Only if you already have a green card for a minimum period of 5 years and above age of 18 years and have stayed in US continuously during that period you are eligible to apply for US citizenship.
If citizenship is denied you still can continue to stay in US as a green card holder.
In case you are not happy with decision after applying for US citizenship using Form N-336 you get another chance of applying for US citizenship. Once you correct the mistake because of which citizenship was denied in the first place the second time you apply you can be sure to get citizenship. Elaborate and careful preparation of the Form N-400 is very important.
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