Applying for a credit card has become less of a hassle. With the world going digital, you can now apply for a card online comfortably from your office or home. All you need to do is submit an online application, along with the required documents, and you can get your credit card issued within a week.
But what if you don’t hear from your bank regarding your card approval? Chances are, your application may have issues. Sound familiar? If yes, here’s what you can do to fix the problem.
Check for Errors in the Application Form
Although it may seem like a minor issue, typos, leaving out important information, or filling in the wrong details can get your credit card application rejected. For the most part, you don’t have to worry about leaving out essential information, as the website itself will prompt you to fill it out.
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However, to avoid mistakes, take time to check if everything is entered correctly once you’ve filled the form. And check more than once. Also, make sure the documents you’ve provided are uploaded correctly.
Check Your Credit Scores
Banks want to make sure that their customers can repay the EMIs on time. One of the ways they do so is by checking your credit score. Since your credit score reflects your borrowing habits and how you manage your funds, a better score indicates better repayment capability.
Now, what do you do if you have a score on the lower end? Well, repaying debts on time and checking your credit report for errors regularly can help you bump up your CIBIL rating.
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Check For Income and Employer Requirements
To get your card issued, you need to meet the minimum income requirement set by a particular bank. Banks set these requirements to make sure you have enough disposable income to repay the debt. If most of your income is spent servicing credit bills, the chances of you defaulting are high. So, check for your bank’s criteria before applying, and plan your finances well.
If you meet both these requirements and still find your application rejected, chances are your employer may be blocklisted by the bank. In such a scenario, try applying for a card with a different bank.
Owning Multiple Credit Cards
While having multiple credit cards certainly offers you more spending freedom, having too many can hurt your chances of application approval. If you’re making all the purchases using your credit card, it can increase your credit utilisation ratio.
A high credit utilisation ratio means you’re using your credit limit too liberally, which is usually a red flag. Doing this can also lower your credit scores, hurting your chances further.
Final Word
Did you know a rejected credit card application can impact your CIBIL score? Well, now you do. This makes it very important to nip any credit card application problems in the bud. Fixing application errors, maintaining a good debt-to-income ratio, and having a high enough credit score can help you avoid most of these common roadblocks.
