Top 6 Reasons Why Your Credit Card Application Got Rejected
Credit card is an instant payment tool which is used by an increasing number of individuals. With a growing demand for immediate finance, the total number of credit cards has seen a significant growth over the past years. According to the data accumulated from Reserve Bank of India, in May 2019, the number of credit cards in circulation reached around 48.9 million.
Almost every financial institution offers such an alternative to liquid funds. An individual should consider a few factors before availing a credit card. They need to meet a few eligibility criteria so that their credit card application status is not denied.
Following are reasons why your credit card application may be rejected –
Zero Credit History
An applicant without a CIBIL score might face rejection while applying for a credit card. CIBIL score is used by card issuers to anticipate the credit-worthiness of a borrower. Therefore, an individual with a zero credit history applying for a card for the first time might face rejection on their application.
Poor CIBIL Score
A poor credit history reflects that a borrower is not capable enough to repay their debt on time or a complete default. Financial institutions provide credit cards to individuals who hold a minimum CIBIL score of 750.
Errors in the Application Form
One of the main reasons why credit card application status of an individual shows rejected because of the lack of accurate data on their form. An applicant should provide valid details regarding their details like address, age, income to avoid rejection of their application forms.
An individual who has applied for a Bajaj Finserv RBL Bank SuperCard can contact their representatives on account of application form rejection due to errors and rectify the mistakes.
Financial institutions not only check their user’s CIBIL score but also check their annual income via a few documents –
- Form 16.
- Income Tax Return files.
- Immediate salary slips.
An individual with an insufficient income can face rejection on their credit card application status.
An Unstable Employment Status
Financial institution can reject a credit card application if the user frequently changes jobs. An applicant with an unstable employment may not be offered with a credit card.
High Debt-To-Income Ratio
DTI is a ratio of an individual’s monthly income and monthly obligations. Borrowers who hold a low DTI might face rejection on their credit card application status.
Other than considering why your credit card application can be rejected, an individual should provide a few significant documents for the approval as well, viz. –
- An individual should produce their identity proof like Aadhaar card, PAN card, Voter ID card, Passport, Driving licence, etc.
- A user must provide address proof like electricity bill, telephone bill, ration card, driving license, passport, Voter ID card, Bank Account statements of the last 2 years.
- A user should provide documentation related to income proof as mentioned above.
- An individual should provide their birth certificate, Voter ID card, Passport, tenth standard school certificate as their age proof.
An individual can contact their financial institution representatives such as the RBL credit card customer care to know about the eligibility criteria they may be required to meet to avail the card. Various financial institutions like Bajaj Finserv provide such borrower-friendly services.
By keeping a few significant documents handy, an individual can check their credit card application status online with ease. Furthermore, most financial organisations provide online portal wherein an individual can check their RBL credit card status and rectify if there are any mistakes in their application.