Friends, many times when we apply for a credit card , we do not get the credit card even though everything is fine. Do you know that the bank pays attention to many things before accepting or not accepting any credit card application. The bank sees whether the person to whom it is giving the credit card is worthy of it or not. But how does the bank check all this? (Credit card rejection reason you should know)
In this article, we are telling about those 5 reasons due to which most of the credit card applications get rejected. If you are going to apply for a credit card, then definitely pay attention to these points (Credit Card Rejection Reason).
Due to which 5 reasons your credit card application can be rejected (Credit Card Application Rejection Reasons)
Your Credit Score
Most of the reason for rejection of credit card application is the poor credit score of the applicant.
If you have ever taken a loan or credit card before and have made any kind of default in the card or loan taken earlier, then the banks decrease your credit score.
By continuously paying your EMI late, your credit score becomes bad.
Having low salary (Low Salary / ITR)
Income requirement for different credit cards is also different in all banks because before issuing credit card to any person, banks look at his repayment capacity.
For this, banks ask for the Income Tax Return form of the person applying (if he has his own business), and Form 16 or Salary Slip from the employed people.
If the monthly or annual income of any person does not fall within the range decided by the bank, then that person’s application is rejected.
Reasons for high limit (Maximum Credit Limit)
Most of the people want to get maximum credit limit (High Credit Limit), but sometimes your application may get rejected even if you take higher limit.
That’s why before applying for a new card, build a good credit history with your first card. After this you will easily become eligible to get a Premium Credit Card.
When applying for a credit card for the first time, start with a basic (Beginner) credit card with no fees and low limits. All banks offer such credit cards.
Banks call this type of card No Frills Credit Cards. And it is a credit card with a low spending limit.
People often fall into the trap of purchasing credit cards with higher limits in the beginning, so do not do this.
Don’t Apply Multiple Credit Cards At Once
Often people start showing madness about credit cards and start applying continuously for credit cards in different banks.
Because all the banks or non-banking financial institutions (NBFCs) that issue credit cards check your complete credit history before approving any of your applications.
And in such a situation, even if you have applied for multiple cards in many banks continuously, your application may get rejected.
Many times people apply again in the same bank without knowing the reason for rejection, due to which their application is rejected because it is a duplicate card application.
Negative profile or area being blacklisted (Negative Profile / Area)
All banks or non-banking financial institutions ( NBFCs ) that provide credit cards or loans have their own eligibility rules. And the application of the person applying for credit card should be as per these rules.
Sometimes these rules also include selected profiles, companies, or areas for certain credit cards. If any of these are not found, your credit card application is rejected.
Frequently job change
If you change your job frequently then it is also not good for your credit card application. Because frequent job changes are considered a sign of unstable career.
In such a situation, it is considered a bit risky to give credit cards to such persons in the absence of consistent income. This reduces your chances of getting a loan credit card. That is why banks often ask for 2-3 months’ salary slips and bank statements while applying for a credit card.
Friends, before applying for any credit card, review the advantages and disadvantages of the card and apply for the credit card only on the basis of eligibility.
If you keep the above mentioned things in mind before applying for a credit card, then your credit card approval chances can increase.
Always remember that credit card is a loan given to you by the bank which you have to repay after some time, hence use the credit card wisely.
