Reasons Why Your Credit Card Application Can be Rejected – Credit Card Application Tips

Are you wondering why your credit card application was denied? Don’t you want to know some Reasons Why Your Credit Card Application Can be Rejected? You don’t expect the card issuer to call you and explain the reasons for the refusal. Let me tell you some of the possible reasons behind the rejection of your credit card application. Some of the reasons why you were denied a credit card are as follows.

Reasons Why Your Credit Card Application Can be Rejected

Shaky Credit Score

Being lazy when it comes to credit card repayment has serious ramifications. Delay in bill payment directly impacts your credit score leading to a bad credit history. This bad credit history can be a good reason for your credit card approval to be denied.

Being Credit Hungry – Reasons Why Your Credit Card Application Can be Rejected

Card issuers assess the applicant’s risk-perception as well. The following actions show us as a “risky” customer and are therefore best avoided:

  • Too many loans: Having too many loans in your name can lead to rejection of your credit card application. In such a scenario, banks are unsure of your repayment capability as your finances are already stretched thin.
  • Applying for many credit cards simultaneously: Multiple credit card applications depict your desperation to avail a card. It may make an issuer doubtful of your repayment capability.
  • High Credit card usage: High usage of a credit card means you tend to exhaust your credit limit swiftly and are not financially stable. Similarly, using multiple credit cards for up to 50% of their combined credit limit can impact your credit score.
  • Incorrect credit report: There are times when Credit reports reflect debt that you have already paid off. Check your report thoroughly for any such inaccuracies as they can drag down your score. Contact CIBIL to get your report corrected.

Mistakes When Filling The Application

Filling the application form with false or incomplete information is another reason for credit card rejection. We suggest you spend time on your application form and double check all your entries to avoid mistakes.

Location – Reasons Why Your Credit Card Application Can be Rejected

Surprisingly, your area of residence or location of your office can also be one of the factors you are not getting a credit card. Banks maintain a record of blacklist areas where they do not extend their services; it could be that your location falls in that list.

Low Income

If you don’t meet the minimum income requirement stated by the card issuer, your application may be rejected. Search for cards that are aligned to your income bracket rather than looking for cards whose eligibility criterion you cannot meet.

Read Also: Credit Card Habits to Adopt

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