Applying for a credit card for the first time is a big decision and it should be made with all due care. You can easily get anxious till the time you do not receive your credit card. Here are some reasons why your credit card application can be rejected and you must know these before applying for a credit card. Keep reading to kick start your research.
- Poor or no credit score: One of the most common reasons for getting a credit card application rejected is having no credit score or low credit score. A credit score is a three-digit number that helps in determining your credibility. If you have a poor or no credit score while applying for a credit card then there are high chances of your application getting rejected.
- Low income: Having low income or not meeting the minimum income requirement can also result in your credit card application rejection. Also, your credit limit is determined by your income, if your application gets approved then you will have a low credit limit because of your low income. Your income level plays a vital role in your credit card application.
- Not meeting the eligibility criteria: You need to check all the eligibility requirements before applying for a credit card such as minimum age, Indian residency, minimum income, etc. You need to meet all the eligibility requirements in order to get your credit card application approved. If you miss out on any eligibility requirement the chances of your application getting rejected increases.
- Multiple applications: Sending multiple applications at one time thinking that you will get at least one card from all the applications then you are wrong. It will actually lower your chances of getting a credit card. Receiving multiple applications will keep the credit card issuers away from you, seeing your hunger for unsecured debt will result in rejecting your credit card application.
- Mistakes in the application form: You need to fill the credit card application form with all the correct information, any mistake in it will lead to rejection of your application. Check the application form as many times as possible before submitting it.
- An issue in verification: An issue in the verification of your information provided in the application will also result in the rejection of your credit card application. Before approving your application the credit card issuer verifies all the information provided in the application such as your address, occupation, office address, etc. If at any stage they are unable to verify the information then they will reject your application.
- Just started your first job: You will want to apply for a credit card as soon as you start working but you must know that your credit card application will be rejected if you do so. The credit card issuer wants to be sure that you are a reliable applicant and that they can approve your application. This is only possible when you have completed more than a year in one job and you are not switching from one job to another frequently. If you have not even completed 6 months in your current job then your credit card application will be rejected.