7 Reasons Credit Card Applications Are Frequently Canceled Including Low Salary And Bad Credit Score
Credit card applications can also be rejected by people who have a bad credit score
If you are using a credit card for the first time, start with a basic, no-fee card.
Sometimes we apply for a credit card but we don't get the card. So, people get worried about why they didn't get a credit card. The bank considers a number of factors before accepting or rejecting any credit card application. Here are the reasons why a credit card application is denied today.
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Low pay
Banks look at a person's repayment capacity before issuing a credit card. To find out, banks require a Form 16 or a salary slip. If his annual income does not fall within the purview of the bank, then the application of that person is rejected.
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Bad credit score
People who have a bad credit score may also have their credit card application rejected. If you default on one of your loans or you frequently default on your EMI, your credit score may be worse.
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Multiple credit cards
Applications from people who have multiple credit cards may also be rejected. So, don't keep too many credit cards or multiple credit cards.
Start with a no-frills card
If you are taking a credit card for the first time, start with a basic no annual fee card. Such a card is called a no frills card. This is a low cost limited card. Don't get bogged down with high limit cards from the start. Your application may also be rejected in the case of a card with a higher limit. So, build a good credit history with your first card. Then avoid applying too much to the card.
Don't overuse
The credit card issuing bank or non-banking financial institution (NBFC) checks your credit history before approving your application. In such a case, if you have applied for too many cards in many banks then your application may also be rejected. So, avoid applying for too many cards.
No credit history can cause trouble
Just as a bad CIBIL score can cause a credit card application to be rejected, so too can a no credit history (i.e. no record of borrowing and repaying in advance) be rejected. People generally believe that a credit score is good if you have not already taken out a loan. But that would not be the case. Banks also decide to issue credit cards based on the ability to borrow and repay. Therefore, a no credit history can reject a credit card application. If you have never taken a loan before then apply for a credit card at the bank where you have a savings account. The bank issues a credit card by looking at your savings account records.
On frequent job changes
It is not suitable for your credit card application if you change jobs frequently. Frequent job changes are considered a sign of a volatile career and therefore giving credit cards to such individuals is considered a little risky. This reduces the chances of getting a credit card.
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