3 Common Reasons Why Credit Card Applications Get Rejected
Rejections are a pain, it is not a word that brings with it positive associations; be it those lonely nights that come post a rejection of love or struggles that come post an interview rejection.
But what if you get rejected on a credit card application? Yes, this happens more frequently than you think, and it is probably because of not meeting few requisites.
This article will arm you with the most common reasons as to why your credit card application could get rejected, read on further and don’t get rejected on your credit card application.
1.Work or Source of Income
Yes, the nature of work and where you work determines the type of credit card that you would get, this is because certain lenders have a qualifying salary limit and expect proof for a steady source of income. Some specialized credit cards are also limited by geographies.
2.Errors in Application
The commonest of reasons and easily the one on which you can ensure 100% accuracy. Provide all correct information while filling in an application. This is especially true in the case of KYC documents that you would be submitting during the process, make sure all the information is correct from your side.
3.Lack of Credit Score or Low Credit Score
A credit card offers a host of benefits, especially if you are starting out just after college or into a new job, this card gives you the financial freedom and purchasing power. But to avail a credit card most lenders require a credit history and hence a credit score to process further.
For those who do not know, a credit score is the numerical representation of your credit behaviour which is reported by the lender to RBI authorized credit bureaus, for example, your credit history would contain references to all the loans and borrowings in the past in the form of accounts.
In brief, it gives the lender a view on your creditworthiness and would help them decide on your credit card application.
While these are reasons for applications to get rejected, we also have remedies which would ensure you that you don’t get rejected in the future.
PS: What Do I Do If I Don’t Have a Credit Score?
Yes, it might seem unfair that your favorite credit card is denied based on the lack of a credit score; but there is always a way.
There are lenders who provide credit cards which cater specifically to those who have a limited credit history or no credit score which utilize your social media profile to get you a card.
Exciting right? Get your first credit card with all your preferred features through CreditMantri. Click here to apply!