7 reasons why your credit card application will be rejected
You know there are many countries in the world where getting a loan, getting a credit card is really easy. All you have to do is fill credit card application and everything is done. Isn’t that simple and easy?
I wish it was so simple in India too. Credit cards are indeed wonderful things; you can buy things that you like on one swipe even when you don’t have sufficient amount of cash in your pocket.
But many times it happens that you apply for a certain credit card and your application gets rejected. It is seen by a survey that banks reject more applications than they accept each day.
No! Don’t scratch your head now as here is the list of top 7 reasons why your application was rejected.
Your Credit History
One of the prominent reasons why banks reject the application is the poor credit history of the applicant. The credit history of each applicant is surveyed by the Credit Bureaus like Experian and CIBIL.
They consider the factors such as the loan servicing, your repayment history, your credit mixture and various other factors. Usually, these Bureaus keep 700 to 720 as the safe zone for a person.
If you are above this score then your credit history is not the reason behind the rejection of your application.
If you own too many credit cards
No bank wants to give their card to someone who would just add it to their collection. If you already have a few cards in your wallet then you might face problems in getting an approval for your new card.
Some banks might have a doubt in their mind about risking their payments. A person holding more than one card could possibly miss onto timely payments.
So, this can be one of the reasons for your rejection.
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Income not stable or Up to the mark
Every bank asks the applicants about their sources of income and its stability. If you are having any of these 2 things missing, your form is likely to get rejected.
Moreover, if you own a credit card of a certain bank that does not mean that you will definitely have the card for the other bank as well.
This is because every bank has their own set of rules and some cards have a different income requirement than the others.
Some people think that occupation does not matter when it comes to owning a credit card. But trust me, it really does. What occupation do you have is one the factors that are deeply studied by the credit card providers.
Actually, this reason is prominent because they see as to how much promising your occupation is. How long could you hold on to the card? How frequently would you be able to use the credit card?
Will you be able to upgrade your card into a better one or not? All the credit card providing companies fetch the answers to these questions by looking into your occupation.
Sometimes if they don’t find your occupation suitable for the credit card they can simply reject your application form.
Past Application Rejection
I didn’t want to include this factor but let me warn you that if your past applications are rejected a few times then this reflects a bad impression to the credit card issuer.
I would like to tell you 2 things that people usually do and land up in getting their applications rejected.
First, if you have recently applied for a credit card and your application was rejected due to some reason, do not apply for a card within the time period of 3 months or so.
Rather look into your things to sort out as to why was your application rejected? Find it out, fix it as soon as possible and then apply for the credit card again, but not before that.
Secondly, if you think that applying in some different bank will do the trick then let me tell you that it won’t. Your credit report will tell all the banks you about the story of your application rejection, so don’t try this as you will face another rejection.
Age is a factor that can’t be neglected. See your age is one factor which will hamper many things and at the same time, it will act as a boon also.
Although there are student credit cards available in the market but still before applying for any credit card in a bank just check the eligibility criterion and see for sure the age they are asking.
If at all you turn out to be too young or too old for the card, the officials of the bank would not even bother checking the application any further and they will dump it straight away.
So, once you have checked the eligibility criterion thoroughly, then only go for filling the application and submitting it else you will have to face a declined form reflecting on your report card.
Mistakes and errors in the application form
Errors and mistakes are few of the root causes due to which people have to face red marks unexpectedly. You know everything and still, you make a silly mistake and you land on getting a red remark against your name.
Same happens in the credit report and applications that you submit to the credit card providers.
If you have made mistakes that are not meant to be done, then it showcases your ignorance, silliness, and foolishness. When it comes to the application form for a credit card then you should not do these mistakes.
If at all you made a mistake find a solution on the spot else it will be the reason for your application rejection.
Also make sure that you double check the information that you have given in the application.
So these are the factors from which one would be the reason for your application rejection.
Also read – how to make the financial plan