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Top 5 Reasons For Credit Card Application Rejection

Is your credit card application rejected recently? You might have a credit card from another bank and want to get a new credit card from some other bank, but still, the application got rejected. What is the reason for credit card Application rejection? In this article, I will share a few such common reasons which may lead to credit card application rejection.

I have shared earlier about the benefits of using credit cards and also how one can get their credit card application approved fast. But this article is about the reasons for which generally credit card application declined.

Credit Card Application Rejection Reasons 2020

5 Reasons for Credit Card Declined

It is not like that once your credit card got declined you can not reapply for a credit card again. You have to understand the reasons first and then act accordingly to fix these issues to get your credit card to approve the next time you apply.

1. Bad Credit Score or low CIBIL Score

A credit score is a key parameter in today's world to decide you are going to get any kind of loan or credit card etc. In case you have a bad credit score or low cibil score, you may not get a credit card. You can find easily why cibil score goes down on the internet and you can realize that any kind of non-repayment of the bill or any other bad records may impact your credit score. But nothing to worry, as you can improve your credit score by following the simple discipline only.

2. Holding too many credit cards

Do you hold many credit cards of different banks and you are applying for a new one? Don't think that banks can't find out how many credit cards you are holding at the same time. In that case, your new credit card application may get rejected, in case you are not able to manage all your credit cards properly and have become defaulters or pending bills in a couple of them. But, if you have clear records of all your credit history then banks will consider your request.

3. Is your monthly salary or income low

Salary matters a lot for getting a new credit card. In case you have a low salary then you may not get a credit card, even though you get calls for free credit cards. Generally, nowadays there are many basic credit cards with a low credit limit and one may get those credit cards. But if you are planning to get a premium or feature-packed credit card like Manhattan Credit Card for a 5% discount on grocery shopping online, then you should have a min salary to get eligible.

4. Wrong information in the application form

Most of the time people are filling the online application form to apply credit card or offline form in a hurry and provide wrong information that may reject your application form during the verification process. You have to be very careful as the verification process is the key and if you fail there this may hit your credit record.

5. Don't have a secure job or changing jobs frequently

Are you changing your jobs frequently? Do you have a definite career goal or are you working in a stable sector? If not then it may impact your credit card application as your income flow may not be the same & guaranteed.

So, these are a few of the reasons for which your bank may think 10 times before offering credit cards to you. But one can easily fix these issues which only take some time and discipline. To get a simple & basic credit card may not be a difficult task these days, but if your credit card doesn't have any cashback or specific benefit it is better to use a debit card only. And to get a premium credit card with lots of benefits one needs to improve certain parameters to get eligible.

Have you ever faced credit card application rejection? Would you like to share why your credit card declined? Just write a simple comment below and share your experience with our readers. Thanks for reading and sharing this article.

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