8 Reasons why is your Credit Card Application Can be Rejected
Sometimes it screws our mind when we keep trying to do something and it gets stuck. We try all our ways but still what we get is the failure.
These things happen more often in credit card applications. There are a few things that the credit card issuing companies take note of and if we are not up to that mark, we keep getting ourselves rejections.
Sometimes we walk pass through it but after a certain time when we had enough, it starts bugging us. For the latter part, this bugging turns into frustration and stress.
But most of us do not see into the facts. We don’t try to find out our problems. So, this article will help you eliminate 8 common reasons due to which your application for the credit card is being rejected.
1. When you just keep bundling up the applications
Bundling up your application in the racks will not just bug you up, it also starts irritating the official who has to issue the credit card.
Don’t make things hard for yourself by sending more and more applications. If your first application gets rejected, then look into the affair and have a word with the officials in the card issuing company.
There must a problem due to which both of you are not on the same page. So get that eradicated. Secondly, if you yourself have figured out the problem then don’t make it in the second application.
But then give a gap (I mean a sufficient time gap) between both the applications. Be responsible while doing these sensitive pieces of stuff.
2. Check your income
The first thing that the card issuing firms look into is the income of the applicant. The income requirement for each card is different.
It also varies according to the issuing company as well. So, there would be a straight rejection of your application if you are not earning the adequate amount that is required for that particular card.
Most of the card issuing companies evade from mentioning the minimum income required for the credit card. But then it is your responsibility to pull out this information. Clearing this beforehand will help you prevent the rejection.
3. Credit Card Collection
Being a business person myself I have around 3 credit cards under my name. But then I regularly use all of them and repay the dues on time.
But if you are just collecting the credit cards and not using them it will be one of the reasons for the rejection of your applications.
No credit card issuing firm would want their card to just stack up against someone wallet. If you already have a number of cards then it is advised not to apply for any other card.
All the credit card records are there with all the card issuing organizations. They would get to know that how many cards you have. How much do you use them? Are you paying your card bills on time or not. They have all the records.
4. You messed up the form
Yeah that’s right we all are human beings and we have the tendency to make mistakes. But fill your credit card application form with caution.
If you made any mistake in your form you will have to face a straight rejection because most of the fields asked in the form is sensitive data collection.
So it is advised to double check the details that you filled in the form. So that there are no mistakes and at least this is not the reason for your form’s rejection.
5. It is too soon for you
It is too exciting to start your job and start earning. But don’t fill up a credit card for in excitement as it will not bear fruits for you. Every credit card issuing firm will look into your job experience as to how long it has been that you are earning.
If they fail to find a promising duration they will red flag your application. So it is advised that you take your time to settle and only when you have a good working experience in your C.V then apply for a credit.
This will increase the chances of your application to get a green flag. Isn’t that what you want?
6. Having a Clean sheet is mandatory
If you are convicted of any crime, it becomes really hard for the card issuing companies to trust you. As it is said, once a lair is always a lair.
Your criminal record (only if you have any) will always reflect in your database that the company will pull out. And no company would want to issue a card to someone who has a criminal record, be it a minor or a major one.
7. Going to a shot for too many at once
See no wise men/ women collect too many credit card. If you have applied for more than one credit card in any of the card issuing companies then it will be a serious problem for you.
If you are thinking to take a shot on more than 1 card then this is not the way clearly. If you think that the companies won’t get to know about this act of yours then you are just fooling yourself.
When your application is under process your database is checked online. The card issuing company has all the access of your previous, current and your upcoming loans, your applications, your repaying times, your dues clearing dates, your credit score, number of cards you hold and more.
So just take it one card at once.
8. Stable income source
Having an income is one thing. Having a good income is another. But there is one-third thing that the card issuing companies look at is your “Stability”. How stable is your income? How many firms have your switched recently?
So all these things should be kept in mind and more importantly, you should keep a track record of some stable income.
These are the 8 common problems that usually occur and result in rejection of your application.
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This is a guest post contributed by Ankur Aggarwal