Here’s Why Your Credit Card Application got Rejected

There are several benefits every credit card offers. It’s a no-brainer that a credit card can help you financially. We all know that a credit card can be availed of after following a procedure. However, that’s not enough. Not everyone can get their credit card application approved.

Got your credit card application rejected?

Getting your credit card application rejected can be truly annoying. First, the companies entice you with amazing offers, and then they decline your request if you don’t meet their requirements, no matter how vague.

Albeit you’d want to go online and apply for a credit card immediately, it will not be that easy. Please note that if your application is rejected, it gets recorded on your credit report. So, if you apply for a card after a rejection, it is going to increase the probability of your application being rejected again.

Instead, it would be a better idea to seek out why your application was rejected. Once you know what went wrong, you can rectify your mistakes and work on improving your chances of getting approved the next time you apply.

Here’s everything you need to know about a credit card.

With this blog, we’ll re-evaluate the various reasons why your application could have been rejected and what changes you can make to minimize the probability of getting rejected again.

There are many reasons why credit card issuers reject applications. To avoid getting your application rejected in the future, avoid the following mistakes:

1. Incorrect Information

Filling out forms can be tedious and time-consuming. Many of us tend to try to fill them up in a jiffy. If you are not careful, you’ll make mistakes. As a result, those mistakes could get your application rejected.

It’s important to understand that credit card issuers need to verify the knowledge you provide to maneuver forward with your application. If details like your residential address or driver’s registration number are incorrect or can’t be verified, they will reject the application.

2. There are recent changes to your circumstances

If your circumstances have changed recently, for instance, you’ve got moved house or changed jobs, you would not have had the prospect to update the information across all of your networks. Again, the matter here comes right down to the credit card provider not having the ability to verify the knowledge you provided.

To avoid such a scenario, you should be ready to rectify this problem by providing additional documentation to them.

3. You are not old enough

As obvious as this mistake may sound, credit card issuers often receive applications from minors. To apply for a credit card in India, one needs to be at least 18-years old. So, if you’re not an adult and are planning to apply, abort. Save yourself the trouble because your credit card application will be rejected. Instead, ask your parents to get you one of theirs.

4. You don’t meet citizenship or residency requirements

While some credit cards allow temporary residents to hold certain sorts of visas to use, for the foremost part, card providers in India require applicants to be an Indian citizen or permanent resident. If you don’t meet the residency requirements of the cardboard you’re applying for, your application will be rejected.

5. You do not earn enough

Most credit cards have a minimum income requirement. If you don’t meet that requirement (officially), your credit card application is going to be rejected. Every bank has its own lower limit in terms of income, which varies from card to card.

6. Your employment situation doesn’t satisfy the requirements

When assessing each credit card application, the card provider has got to weigh up what proportion of a risk the applicant is going to be. Employment status plays a crucial role in determining whether the user will be able to repay the bill amount or not.

If you’ve got a stable job, you’d be a low-risk applicant. On the other hand, if your job is temporary, part-time, or hard to verify, you’d be deemed a high-risk applicant.

7. Your financial risk is just too high

When you apply for a credit card, you’ve got to provide details of not only your income but your expenses, as well. You would usually need to provide an estimate of what proportion you spend on your rent or mortgage, insurance, utilities, bills, childcare, food, entertainment, and various other expenses.

If your expenses outweigh or take up an outsized percentage of your income, the credit card provider would most likely deny your application. You can check your Financial Fitness Score here.

8. You have a bad credit history

One of the most critical factors to determine whether your credit card application should be approved or rejected is your credit history. Checking your credit history, the card provider can see how responsible — or irresponsible — you have been with credit in the past.

If you’ve got bad credit, with late payments, defaults, or maybe bankruptcy on your credit report, you’ll be deemed too high risk to be approved for a credit card.

When your credit card application is rejected, the card provider may or may not share the reason with you. If no explanation is given, may choose to ask the card provider for the reason.

Find the proper fit

When you apply for a credit card, it must be as suited to you as you are thereto. While it’s easy to be swayed by introductory offers and enticing discounts, try to look beyond all that. Seek a card that matches your needs and your circumstances.

Also, before applying for a credit card, you should check your credit score. You can always check your credit score on Keeto app for free. Why Choose Keeto to Check Credit Score:

• Safe & secure
• Easy to handle & user friendly
• Absolutely free
• Accurate suggestions from industry experts
• Can help you improve your Credit Score

Did you make any of the mistakes listed above? Let us know in the comments section below.