Avoid Credit Card Rejection- Here is the tip

Credit Card rejected
Credit Card rejected

Generally people has credit cards for thier financial needs like shopping, movies, bill payments, travelling, food and other general. Here is the problem how he/she can get new credit card, if she/he had one credit card can they have one more credit card don’t worry onlineupdates4u.com blog post gives you the way how he/she can have credit cards (new or more).

Credit Cards are popular payment tools that provide the convenience of buying now and paying later. The ease of getting a credit card has also added to its immense popularity. But sometimes, your credit card application may get rejected for various reasons. It is thus important to be aware of the reasons for rejection and take necessary steps to avoid rejection in future.

If you’re approved for a credit card, you’ll typically find out right away. When you’re denied, however, it’s a completely different situation. Credit card issuers rarely tell you on the spot why your credit card application was denied.

Reasons for Credit Card Application denied

1. Improve Your Credit Score – Repair Your Credit

Your credit card application may have been denied because you have bad credit. Unpaid collections, recent delinquencies, and high credit card balances are all things that need to be fixed before you can be approved for a credit card (or a decent one at least).

Use your credit report as a starting point for repairing your credit. You can improve your credit by disputing errors, getting caught up on past due accounts, paying down high balances, and minimizing the number of new credit applications you make.

Some of reasons

  • Taking out loans with multiple lenders.
  • Not paying EMI’s on time.
  • Defaulting on loan payments.
  • Applying for a credit card with multiple lenders.

2. Address Verification:

Address verification is a compulsory part of the check a bank is obliged to do before issuing a credit card to an applicant. The address provided in the application form is verified routinely, and in case of multiple addresses being submitted, each of these addresses are verified. It is essential that the applicant provide accurate addresses and information on their place of work and residence to ensure the approval of an application. A discrepancy in the address details is grounds for automatic rejection of an application, and thus applicants should ensure their address and the proof submitted are adequate and accurate.

3. Errors in the Application Form:

While this might seem very trivial, making a mistake in the credit card application form could result in the rejection of the application. AN incorrectly filled in application form or multiple errors in the form has resulted in applicants losing out on acquiring a credit card. Failure to mention certain details (omission of facts) are also grounds for rejection, as banks have access to your credit history as well as your previous financial records. To avoid your application being rejected due to such a reason, it is advisable to apply online and review all information as presented on the screen. In this way you will avoid forgetting to enter some information.

4. Your Loan Balances Are Too High

If you haven’t been paying down your loan balances, credit card issuers are hesitant to give you a credit card because there’s a risk you may not pay that off either. Reducing your loan balances before applying for a credit card can help you get approved.

5. Your Credit Card Balances Are Too High

Credit card companies want to see that you’re only using a portion of the credit available to you. If you’re using too much of your available credit, especially if you’re maxed out, you can count on having your credit card application denied. Keeping your balances below 30% is best for your credit score and your chances of getting approved.

6. There Are Too Many Inquiries on Your Credit Report

Applying for too many credit cards and loans within a short period of time can get your credit card application denied, regardless of whether you’re approved for the other credit cards. Minimize your credit inquiries to improve your chances of getting your next credit card application approved.

7. Your Income Is Too Low

The income required for a credit card varies by credit card issuer. Your credit card application could be denied if you don’t make enough money for that particular credit card or if you don’t have an income of your own. Credit card issuers don’t publish minimum income requirements for their credit cards, so it’s up to you to estimate which credit cards fit your income.

8. You Have Too Many Credit Cards – Don’t Apply

Another reason that some credit card applications are rejected — even when the applicant has a seemingly good credit score — is that the said applicant has too many recent applications for credit cards. To a card issuer, these multiple applications can be interpreted as a sign of possible financial difficulty. If you have already applied for several credit cards, or other loans, within the past few months, it might be best to wait a few more months before filling out new applications.

9. Your Last Delinquency Was Too Recent

Credit card issuers look at more than just the type of delinquency. They also consider how long it’s been since you were last delinquent. A 90-day late payment from six months ago will hurt your chances of getting approved more than one from six years ago.

10. You’re Not Old Enough to Get a Credit Card

If you’re under age 18, you’ll probably have your credit card application denied because you’re under the legal age to get a credit card. There are some exception. For example, you may be able to get approved for a credit card if you have your own income and you’ve already been added as an authorized user to your parents’ credit card.


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