A credit card can boost your spending capacity, helping you out in times of need. However, not everyone is issued a credit card. If you have recently been declined a credit card, then you may want to know more about the reasons behind the rejection.
Reasons why your credit card application got declined
Here are a few reasons why your credit card application may have been rejected:
- You may have a bad credit history
- You may not have a credit history
- You may have low income
- Your employer details may not be satisfactory
You may have a history of bad credit
Your credit rating is an important factor in the approval process. For banks and financial companies, your credit score stands as a testament to your repayment ability. If you have a low credit score, you will have a hard time obtaining a credit card.
You may not have a credit history
When you apply for a credit card or loan for the first time, you may face some difficulties. Financial companies look at your credit rating as an indicator of your ability to repay loans. But if you do not have a credit history, to begin with, then it is difficult for the issuer to gauge your repayment capacity.
Additional read: How to use a credit card wisely
To get past this barrier, it’s a good idea to apply for credit cards at the bank where you already have a savings or current account. This is because your bank can analyse your spending habits by going through your account history.
Your income might be low
Apart from your credit history, card issuers also look at your income before accepting your application. Your credit card eligibility is negatively affected when you have a low level of income. In India, financial companies usually grant credit cards to those with an income of at least Rs. 1.8 lakh per annum.
Your employment details may not be satisfactory
Credit card issuers also consider the company where you are employed during the approval process. If you work in a non-listed private firm that is not well known, then your chances of obtaining a credit card may be adversely affected. Financial companies often look at people employed in such companies as high-risk individuals prone to income fluctuations and designation exaggerations. Working at an unknown firm is another one of the top credit card rejection reasons in India.
If you are looking to obtain a credit card from a trustworthy financial company, then consider the services provided by Bajaj Finserv. Credit cards are offered to both salaried and self-employed individuals.
Depending on your qualifications and requirements, you can choose from a world credit card or a platinum card. Each time you swipe your card, you win reward points that can be redeemed to avail yourself an exciting range of benefits.
Additional read: How to use credit card reward points
You could also be eligible for some exciting pre-approved offers. Save time by simply entering your basic details and find your pre-approved offer here. This simplifies the whole process of availing of financing.
However, it is essential to know credit card eligibility and have your finances in order before applying for credit cards. With a credit card in hand, you can easily make many purchases and never lack funds during an emergency.
While care is taken to update the information, products, and services included in or available on our website and related platforms/websites, there may be inadvertent inaccuracies or typographical errors or delays in updating the information. The material contained in this site, and on associated web pages, is for reference and general information purpose and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions. In case any inconsistencies observed, please click on reach us.
*Terms and conditions apply