5 Reasons why your credit card application may get rejected

You may be a highly paid professional, working for a multinational company but still your credit card application may get rejected. If you’re approved for a credit card, you may not be worried. When you’re denied, however, it’s a difficult situation. Credit card issuers rarely tell you reasons for rejecting your credit card application.

Rejection is always hurting for anyone, so you should always prepare yourself to get an approval instantly for a credit card application. You should bear these things in mind while applying for a credit card.

Minimum Income Criteria not met

Every credit card sets predefined income criteria for the applicant. If you do not fulfill that minimum income requirement, your credit card application is likely to be rejected. It is always advisable to search for cards that are matching with your income to avoid any rejection on this basis.

Residence/ Office Address not serviceable

Surprised? Yeah, the area where you reside or where your office is located, also plays a role an important role in the acceptance of your credit card application. Banks have a list of negative areas, now-a-days called auctions areas where they do not provide any credit services.

Misrepresentation of facts

You should always give factual and complete information in your application form. Incorrect or incomplete information may also lead to rejection of your application. It is a good practice to have a review of you your filled application form and rectify anything that seems to be out of place or incomplete.

Errors in the credit report

Errors may been spotted in credit reports due to various reasons. Whenever a rectification is to be made in your credit report, it usually takes time, even more than 30 days. Errors may be like, some old credit card overdue of yours that has been cleared is updated in your credit report. So as a practice, before you apply, make sure that you go through your Credit score and report, and flag the issue to the credit bureau. Disputes if any, can be raised online with CIBIL by following these steps.

Unsatisfactory Credit Score

A credit score is what a prospective card issuer refers to before approving your credit card application. This is the foremost reason for the rejection of a credit card application. How responsibly have you used credit in the past gets reflected from your credit report.

The following are a few triggers that would categorize you as a risky applicant:

  • Only un-secured loans availed: If you have taken only personal loans or credit cards, your credit score may not be that good. A balance between unsecured and secured loan helps in building a better score.
  • High credit card usage: Using more than 40% of your credit limit on a number of cards, will project you as a risky applicant. Your credit score will also reflect high risk due to this pattern.
  • Delayed payments in the past: Repayment of a loan or payment of credit card bill has to be done on a monthly basis. Any delay in repayment is reported by the lenders to the credit bureau. These delays project you as a financially indiscipline or financially stressed applicant. Avoid making delayed payments on all your borrowings.

Employer not listed

Every card issuer lists the companies operating in India based on their financial strengths, business strength, past track of its employees with the card issuer etc. If your employer is not rated good or your employer is not listed with the credit card issuer, your credit card application may be declined.

With Gullakh you can apply for a credit card online and even get instant approval. Just visit our website and check your credit card eligibility for free. Once you check your eligibility for a credit card online at Gullakh.com, it shows you a list of credit cards based on your eligibility. You can easily compare and apply online for an instant online-approval of your chosen credit card.

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