A credit card is the quickest and the most convenient way of accessing cash in emergency situations and to help you tide over your expenses until your next pay check. However, to apply for a credit card and get approved, is a whole different process.
It’s not uncommon for credit card applications to get denied. If you’re planning to get a credit card you need to know the possible reasons why your application may get denied and then avoid the same.
Here are the common reasons why credit card applications are denied:
One of the first things credit card issuers consider is your credit score. A poor credit score is a sure shot way of having your credit card application denied. It indicates that you’ve not paid your past dues on time and are not good at managing money, thus coming across as a potential defaulter.
You must make sure to check your credit score before applying for a credit card.
Lack of credit history
Another credit-related reason as to why your credit card application may be declined is the absence of a credit history. It’s just as negative as a poor credit score, because it doesn’t throw any light on your credit behaviour.
For a first-time credit card applier, it’s tricky because to have a credit history you need to first get approved for a credit card.
Age and income
Credit cards are usually provided to people with a steady income who have several work-productive years ahead of them. Therefore, most times credit card applications of people in their early 20s and below as well as those above the age of 60 are declined.
Another basic criterion for credit card eligibility is the level of income, which when too low becomes the reason for the rejection of the credit card application. Additionally, if you’ve had an unsteady income track record or have not completed too long at your current job, it’s possible that your credit card application will be declined.
A common reason for rejection of credit card applications is errors in the application. Entering wrong information like contact details or leaving the form incomplete leads to the credit card application being denied. Make sure to double check all the details before submitting the form and to not leave any fields missing.
Too many cards and balance transfers
If you’re someone who opts for too many balance transfers or have multiple credit cards already, this could be a possible reason for your credit card application being denied.
Such circumstances give off the impression that you’re too financially dependent on credit cards and lack financial discipline and stability.
Now you know what to look out for. If you’re wondering which credit card to apply for, consider credit cards like the Bajaj Finserv RBL Bank Credit Card. It has several industry-first features like free ATM cash withdrawals and easy EMI options that make it a smart choice.