Applying for a credit card or loan is easier now. You can do it from anywhere and anytime online. There are a variety of lenders available and some do not even ask for security for your loan. Also, some lenders provide you with pre-approved loans and credit card offers. Although applying for a loan or credit card is easy, lenders have specific criteria based on which only they will approve your application.
What is the Reason for Rejecting Credit Card or Loan Applications?
Here are a few reasons why lenders reject your credit card application or loan application
Poor credit score:
Credit card issuers and loan lenders assess your creditworthiness based on your credit score. They will hesitate to give you a loan or credit card if you have a poor credit score. The probability of your credit card or loan application rejected is more if your credit score is not good.
Nil credit history:
Lenders and issuers evaluate your application based on your credit history or credit score. If your credit history is nil, then lenders will not have anything to assess you on, so your credit card or loan application may get rejected.
Insufficient monthly income:
When you have inadequate monthly income, the lender will hesitate to give you a credit card or loan doubtful that you may not be able to pay your credit card bills or EMIs before the due date.
Mistakes in your application form:
Giving inaccurate information will lead to your credit card or loan application being rejected.
Having multiple credit cards or loans in your name:
If an individual has many credit cards or loans in his/her name, then the likelihood of his/her credit card or loan application being rejected is higher.
All lending institutions make a physical verification of the applicant’s address - both residential and official. It is essential to give the office and residential addresses correctly. Also, when a representative comes from a financial institution to verify your premises, you should ensure that nothing goes wrong. If the lending institution fails to verify your location, then your credit card or loan application could be rejected.
There are several other eligibility criteria based on which lenders approve your credit card or loan application, such as age, nationality, educational qualification, and so on. If you do not satisfy these criteria, then your credit card or loan application is likely to be rejected.
If you have changed too many jobs and are not constantly staying in one job, then your credit card or loan application is likely to be rejected.
Also Read: Top Reasons for Rejection of Personal Loan