Credit card has become a luxury that almost everyone wants to have. While credit cards present its users with a range of benefits, it is not so easy to be the rightful holder of them.
Here are some of the common reasons why one may be rejected for a credit card application.
1. Incomplete application
The documents along with the credit card application you have submitted might be incomplete. This is a reason that can be avoided by filling out the details carefully and therefore, prevent delaying of the credit card procedure.
2. Low level of Income
Your income might not be up to the level that is required for credit card holders. This might be upsetting but it is actually for your own benefit as you might not be able to meet the repayment requirements once the credit limit is exhausted.
3. Not the right age
You might be too old or too young to own a credit card. The defined age limit serves the purpose of avoiding excessive risk taking form the Bank’s perspective and unnecessary financial burden on the potential customer.
4. Poor Credit History
Before a loan is approved, the entire investigation of the applicant is conducted in order to ensure that there is a good chance of money being returned. Same goes for the Credit card applicants as well. Hence, if one has a poor credit history, the credit card application is simply rejected.
5. High existing Credit card balance
The investigation, as mentioned previously, also includes checking current number of credit cards and their balances. If one owns too many credit cards already or have a high credit card balance to be repaid, there are high chances that the application might not be accepted.
6. Card Selection
There is also a chance that the credit card type you are applying for does not suit your day to day needs as per the bank’s investigation or is not up to the level of your risk appetite which is another reason for credit card rejection.
There is a 3 step procedure through which the credit card application rejection can be avoided:
- Identify the mistake you did when you previously applied of the credit card and got rejected.
- Work on your credit rating. You can achieve this by requesting a copy of your credit history from the credit bureau.
- Find the right credit card for yourself.
Following these steps can help you improve your application and therefore increase your chances of becoming the rightful owner of a credit card.