Know the Reasons for Rejection of a Credit Card Application
Well said, Good info. There is no doubt that for a new business setup, most of the people take business loan but some people’s loan application is rejected by the banks and lots of people don’t know what the reasons behind are. But thanks for the post, it’s really informative for those people which are need business loan.
Robin (Posted: Mar 7, 2017)
There may be several reasons for a credit card rejection. I have listed down few for you:

1. The Application Is Missing Information

If you hastily complete your credit card application, you may inadvertently skip a few boxes. Credit card companies require detailed information about you, such as your full name, your address, and your income. If you omit important information from your application, the credit card company will deny your request, in which case, you have to reapply.

To ensure you do not make this mistake, apply for a credit card online. While you can easily send off an incomplete paper application, online forms do not submit your request until you’ve complete all required fields.

2. You Are Too Young

Regardless of whether you have a job or another income source, you cannot apply as the sole account-holder of a credit card if you are under the age of 18. Furthermore, if a credit card company were to approve your application as a minor, they cannot take legal action if you default on a bill.

Despite this restriction, persons under the age of 18 can obtain a credit card – but it requires a parent to cosign and include his or her name on the account. Alternatively, a minor can be listed as an authorized user of a parent’s account, which means all payment activity and account history will appear on the minor’s credit report. Keep in mind that becoming an authorized user can be risky for all involved, as any negative account activity will show up on both the primary and authorized users’ credit reports.

Lastly, minors can always obtain a prepaid credit card. Prepaid credit cards don’t build a credit history, but they can teach young people how to make a budget and use a card responsibly.

3. You Do Not Earn Enough Income

Credit card applications invariably ask about annual income. Credit card issuers have minimum income requirements, but they don’t always disclose them on the credit card applications. This minimum varies between cards and issuers, and if you don’t meet the minimum, your application will be denied.

In this case, you must wait until your income increases and then reapply. You can also reapply with a joint applicant, in which the credit card company determines approval based on your combined income. To avoid this headache, shop around and compare different credit card offers. Call credit card companies directly and inquire about the minimum income for approval.

credit card

4. There Is Negative Information on Your Credit Report

Information on your credit report directly influences whether a credit card application is approved or declined. Even if negative information is reported in error, it can still trigger a rejection. Therefore, it’s up to you to get a free credit report and review it for accuracy. Carefully review each line of your credit report, and take note of erroneous information. Write the bureaus to dispute this information, as this will prompt an investigation in which the bureaus will delete any negative information reported in error.

Of course, if your credit report accurately reports negative information, you must take immediate steps to rebuild your credit score. Be sure to pay your creditors on time by setting a schedule or utilizing automatic bill payments, and settle all delinquent accounts. Wait until your credit score improves, then reapply for the credit card you desire.

5. You Have Too Much Existing Debt

The more debt you have, the harder it is to get new credit. In addition to a good payment history and steady income, your debt-to-income ratio needs to be low enough to be approved for a credit card. This is the percentage of how much debt you have relative to your monthly income. Credit card issuers also don’t like to see that you’ve maxed out your existing lines of credit. High debt translates into a risky applicant, as issuers believe you’re more likely to default.

If you’re denied a credit card because of debt, develop a debt elimination plan to pay down your credit card balances and other loans. Pay more than the minimum each month or pay down balances with money from savings. Aim to keep your balances less than 30% of your credit limit, and your debt-to-income ratio well below 36%.

6. Your Employment History Is Unstable

A consistent employment record also plays a role in credit card approvals. If you hop from job to job or were recently unemployed, a credit card issuer may view your employment and income as unstable. Wait until you’re on a job for at least six months to one year before applying for a credit card.
Ishika (Posted: Oct 12, 2015)
I have a CIBIL score 822. No negative marks. also I am using a Citi bank credit card. I applied for one more credit card from Citi, HDFC & ICICI banks however all rejected .
I have a home loan also. I am not a defaulter as per CIBIL .
I would like to know what I should to get the new credit card.
pravin dhokale (Posted: Jan 8, 2015)
my credit score is 811 but when i have apply for credit card after verification its get reject what is the reason behaind this can you please explain us
sandesha r (Posted: Sep 22, 2014)
My credit score is 581. I want to increase my credit score , so please brief me to increase my credit score .
Abdul Shamee (Posted: Sep 9, 2014)
Any queries related to CIBIL reports you can connect to
Durgesh (Posted: Jun 14, 2014)
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Financial Consultant (Posted: Feb 17, 2014)
My application of credit card get rejected 2-3 times although my CIBIL score is 790 i have clear my all loan timely
i can not under stand the reason
will you suggest me
Harish (Posted: Nov 28, 2013)
My application was rejected. Credit Sudhaar was my choice. Initially they were slow. But their counsellors were able to handle all my queries. I will give Credit Sudhaar a positive review
Sukhvindar singh (Posted: Jul 9, 2013)
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