10 Reasons your Credit Card Application may get DeclinedCredit Card Plans & ServicesUpdated on Dec 10, 2018 View more like this | Visit India, UN | Contact Bajaj Finserv Business Loan In Delhi |
India is seeing a record increase in credit card usage, with an average of 6 Lakh being added every month in 2017. A good reason for this continuous upsurge is because financial institutions have made the credit card application process more straightforward.
They are also providing attractive features making these cards one of the exceptional forms of payments for consumers.
For example, the Bajaj Finserv RBL Bank SuperCard provides up to 20,000 reward points when you avail it. You also get interest-free ATM cash withdrawal and emergency loans for a period of up to 50 days and 90 days respectively using the card.
Furthermore, Bajaj Finserv provides pre-approved offers that make the process uncomplicated and decrease the time of availing credit cards. Pre-approved offers also come with home loans, personal loans, business loans, and several other financial products & services. You can check out your pre-approved offer by providing only a few personal details.
Getting a credit card is indeed easy with such features. However, there are plenty of reasons why your application may face rejection. Here are 10 such justifications for which a financial company may decline your application.
You have a bad credit score
Having a bad credit score is one of the primary reasons for rejection. Companies usually require a score of 750 at least if you are applying for a privileged card.
There are various other credit cards that don’t require such credit score; however, they come with limited features and benefits.
Your occupation is not as per the financial company’s requirement
Your occupation also plays a significant role in your credit card application. Frequently changing jobs, the reputation of your company, etc. are some factors that influence your application.
Furthermore, being self-employed, your application may also face rejection if you don’t own a creditworthy business.
You have a low income
Your income comes next and financial institutions consider it a vital parameter for determining your credit card eligibility. They may require you to have a minimum income when applying for a specific card. You also have to submit important documents like salary slips, business turnovers, income tax returns for verifying the same.
Nevertheless, there are financial companies who provide credit cards to those with low income. These cards have lower limits and fewer features.
Errors in your application
Errors in your application are one of the top reasons for rejection. You need to ensure the entire information provided is correct.
You have applied for multiple cards
Financial companies seek your CIBIL score and report from the credit bureau whenever you submit a credit application. These enquiries are later included in the updated credit report. If your credit report reflects multiple such enquiries, a lender may not approve you a credit card or a loan the next time you apply. Moreover, this financial habit will also bring down your CIBIL score largely.
Your application was one rejected
Your application may be rejected if you have previously experienced the same. Details of any prior decline reflect in a credit report for a prolonged period.
You own multiple credit cards
Owning multiple credit cards can also lead to application refusal. Too many cards make you look credit hungry and a risky customer. Hence, there are higher chances of you defaulting on your payments.
Your debt-to-income ratio is high
A company may check your debt-to-income ratio or Fixed Obligations to Income Ratio (FOIR) before approving your application. In such cases, it will accept your form only if you have a FOIR of 50% or below.
You live in an unserviceable area
Your application may face rejection if you live in a location unserviceable by the company.
You have opted for multiple balance transfers
Last but not the least, financial companies can reject your application if have opted for too many balance transfers in the past.
Avoid all of these reasons to ensure your credit card application gets quick approval. You can apply for cards like the RBL Bank Credit Card and enjoy many industry-first features.
They are also providing attractive features making these cards one of the exceptional forms of payments for consumers.
For example, the Bajaj Finserv RBL Bank SuperCard provides up to 20,000 reward points when you avail it. You also get interest-free ATM cash withdrawal and emergency loans for a period of up to 50 days and 90 days respectively using the card.
Furthermore, Bajaj Finserv provides pre-approved offers that make the process uncomplicated and decrease the time of availing credit cards. Pre-approved offers also come with home loans, personal loans, business loans, and several other financial products & services. You can check out your pre-approved offer by providing only a few personal details.
Getting a credit card is indeed easy with such features. However, there are plenty of reasons why your application may face rejection. Here are 10 such justifications for which a financial company may decline your application.
You have a bad credit score
Having a bad credit score is one of the primary reasons for rejection. Companies usually require a score of 750 at least if you are applying for a privileged card.
There are various other credit cards that don’t require such credit score; however, they come with limited features and benefits.
Your occupation is not as per the financial company’s requirement
Your occupation also plays a significant role in your credit card application. Frequently changing jobs, the reputation of your company, etc. are some factors that influence your application.
Furthermore, being self-employed, your application may also face rejection if you don’t own a creditworthy business.
You have a low income
Your income comes next and financial institutions consider it a vital parameter for determining your credit card eligibility. They may require you to have a minimum income when applying for a specific card. You also have to submit important documents like salary slips, business turnovers, income tax returns for verifying the same.
Nevertheless, there are financial companies who provide credit cards to those with low income. These cards have lower limits and fewer features.
Errors in your application
Errors in your application are one of the top reasons for rejection. You need to ensure the entire information provided is correct.
You have applied for multiple cards
Financial companies seek your CIBIL score and report from the credit bureau whenever you submit a credit application. These enquiries are later included in the updated credit report. If your credit report reflects multiple such enquiries, a lender may not approve you a credit card or a loan the next time you apply. Moreover, this financial habit will also bring down your CIBIL score largely.
Your application was one rejected
Your application may be rejected if you have previously experienced the same. Details of any prior decline reflect in a credit report for a prolonged period.
You own multiple credit cards
Owning multiple credit cards can also lead to application refusal. Too many cards make you look credit hungry and a risky customer. Hence, there are higher chances of you defaulting on your payments.
Your debt-to-income ratio is high
A company may check your debt-to-income ratio or Fixed Obligations to Income Ratio (FOIR) before approving your application. In such cases, it will accept your form only if you have a FOIR of 50% or below.
You live in an unserviceable area
Your application may face rejection if you live in a location unserviceable by the company.
You have opted for multiple balance transfers
Last but not the least, financial companies can reject your application if have opted for too many balance transfers in the past.
Avoid all of these reasons to ensure your credit card application gets quick approval. You can apply for cards like the RBL Bank Credit Card and enjoy many industry-first features.
