Picture this. You thought that having a credit card with a limit of Rs.50,000 would help you live comfortably. It is because you would be able to finance all your needs during emergencies.
Hence, you went ahead and filled a credit card application form of a reputed bank. However, much to your surprise, your credit card application got rejected.
Your bank would never tell you the reasons why your credit card application form was rejected. Don’t worry; this write-up will let you know some possible reasons for the credit card application form rejection. Let’s know more:
1) When you have a bad Credit Score
The Credit Score is the first thing that your lender will see while processing your credit card application form. It provides the lender with the right guidance about your creditworthiness. If you have failed to pay your existing loan EMIs, and other payments on time or in full, then you will have a poor CIBIL Score. Hence, having a lower Credit Score will see your credit card application form getting rejected directly. You can again build it by paying all bills on time and bring it to 750+ out of 900.
2) When you have a low income
Another thing that the lender sees while processing your credit card application form is your income’s capacity. If you can repay the credit card outstanding amount, then only your application gets approved. Your income eligibility conditions need to match with the policies of the lender. Also, you may need to submit some income documents such as Salary Slips, ITRs, and Form 16 while applying. Your credit card application will be denied if you fail to meet the income requirements set by the credit card issuing bank or the lender.
3) Your occupation
Your occupation or the job is another vital thing considered by your prospective lenders. Yes, it analyzed at the time of processing your credit card application form. Even if you are well-employed and taking home a decent salary, your application may be rejected. It is because the company that you are working for may not be reputed. Also, if you have been a job hopper, the credit card company may consider you unstable. As a result, they may see you not being capable of paying off credit card bills on time, leading to rejections.
4) Mistakes in your credit card application form
Having some random errors in your credit card application form may be a minor issue for you, but not for your lender. They may reject your application for a simple reason that you have not filled the form correctly. Hence, it is always better to apply for a credit card online and get to know about the approval status instantly.
5) When you have many credit cards in your name
Credit card issuing banks and other lenders don’t consider people already with so many cards eligible for one more credit card. Hence, their credit card application gets rejected. The primary reason for the rejection is that lenders see some risks of getting timely repayments as the application has so many cards’ bills to pay. All applicants with an excellent debt-to-income ratio are considered fit and fine to be given a go ahead. Are you willing to apply for a credit card? Ensure that you don’t have too many other cards at your disposal.
Once you take note of these issues and fix them, you can apply for a Bajaj Finserv RBL Bank SuperCard. It can help you pay for your expenses when you don’t have enough funds in your savings account. Also, you can convert some higher priced transactions into EMIs and pay fixed amounts per month.
You also get a month to clear your outstanding amounts. All these factors make credit cards a must to have things in today’s time.
Being aware of the factors that can reject your credit card application form will now help you apply with all cautions!
Bajaj Finserv offers some fantastic pre-approved offers on a lot of financial products such as home loans, credit cards, business loans, and more. Opting for the same will help save you time as they are designed to make the loan processing hassle-free.
You can share some of your basic details and check out your pre-approved offers right away!