Why was my Credit Card Application rejected?

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Why was my Credit Card Application rejected by bank? - Rejection for a credit card can be for a few different reasons, not only for having bad marks in your credit file. You should apply for your CIR to find out why you were rejected. Reasons like age and income can’t be altered. However, credit issues can stem from having overdue or defaulted credit accounts. It is important that you verify that all information in your file is correct, if not take steps to fix the issues. If your card has been used fraudulently you should be able to correct it and restore your credit rating.

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Why was my Credit Card Application rejected?

  1. 1. Why was my Credit Card Application rejected? “ Strengthening your creditability“ RectifyCredit Knowledge Series
  2. 2. Why was my Credit Card Application rejected? <ul><li>Rejection for a credit card can be for a few different reasons, not only for having bad marks in your credit file. You should apply for your CIR to find out why you were rejected. Reasons like age and income can’t be altered. However, credit issues can stem from having overdue or defaulted credit accounts. It is important that you verify that all information in your file is correct, if not take steps to fix the issues. If your card has been used fraudulently you should be able to correct it and restore your credit rating. </li></ul>
  3. 3. The reasons for rejections could be: <ul><li>You didn't completely fill out the application. </li></ul><ul><li>If your application is missing vital information, you risk being denied. The good thing about most online credit card applications is that they often won’t let you submit the application until it’s complete. </li></ul><ul><li>2. You're not old enough to get a credit card. </li></ul><ul><li>If you’re under age 18, you’ll probably have your credit card application denied. There are some exceptions, for example, if you’ve already been added as an additional user (secondary user linked to same credit card account) to your parents’ credit card. </li></ul><ul><li>3. Your income is too low. </li></ul><ul><li>Income limits vary by credit card issuer. You could have your credit card application denied if you don’t make enough money for that credit card. </li></ul>
  4. 4. The reasons for rejections could be: <ul><li>4. You haven't been at your current job long enough. </li></ul><ul><li>CIBIL report takes the note of your address every time you apply for any type of credit. The address gets categorised with respect to dates which shows your movement. An unstable work history could have your credit card application denied. Credit card issuers like applicants who have been on their job consistently </li></ul><ul><li>5. You have no credit history. </li></ul><ul><li>If you don’t have at least one account that’s been active in the past six months, the bureaus can’t generate a credit score for you. Without a credit score, the credit card company can’t approve your application. </li></ul><ul><li>6. You have special status like written –off on your credit report. </li></ul><ul><li>A written off is a credit card balance that is unpaid for six months or more. It’s one of the worst things that can appear on your credit report. Honestly, if you failed to pay another credit card, a new credit card company will hesitate to give you a credit card. </li></ul>
  5. 5. The reasons for rejections could be: <ul><li>7. There are too many inquiries on your credit report. </li></ul><ul><li>Applying for too many credit cards and loans within a short period of time can get your credit card application denied, regardless of whether you’re approved for the other credit cards. Keep your inquiries to a minimum to improve your chances at getting your credit card application approved. </li></ul><ul><li>8. You have too many credit cards. </li></ul><ul><li>The number of credit cards you have can influence whether your credit card application is denied. </li></ul><ul><li>9. Your loan and credit card balances are too high. </li></ul><ul><li>Credit card companies want to see that you’re only using a portion of the credit that’s available to you. If you haven’t been lowering your loan balances, credit card issuers are hesitant to give you a credit card. You may not pay that off either. Before you apply for a credit card, pay off some of your existing loan balances. </li></ul>
  6. 6. You need to take the following steps <ul><li>Check your credit card history – If it’s bad, wait over 6 months till your next application. Do not keep applying to credit cards since that will reflect in your CIBIL report as part of the enquiries made on your report by the financial institutions. </li></ul><ul><li>Even with a good history, if your first credit card is rejected, wait for 2 weeks till your next application to avoid rejections. </li></ul><ul><li>Try to clean up your financial situation if it’s not very difficult </li></ul><ul><li>Ask the credit card provider who rejected you why? It is best to meet personally , since your online query may not be answered well. </li></ul><ul><li>Get your credit profile rectified. </li></ul>
  7. 7. Thank You!!! For more information please visit www.rectifycredit.com

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