Why Your Credit Card Application Can be Rejected | Credit Help India

Credit Card Rejection

Credit card rejections can be avoided if the applicant knows what causes them to be turned down. They take action to fix these problems and make positive changes that will improve their credit history as much as possible.

Common reasons for credit card rejection by international banks are often due to:

  • Low credit scores.
  • Insufficient proof of income .
  • A high number of rejected applications or inquiries within a short period.
  • And other reasons related to Bank credit criterion.

Bad Credit Turns Out to Be the Primary Reason

Most people who apply for approval have good credit history and do not normally get rejected. However, sometimes bad credit history or a low credit score can also cause a bank or lender to reject an application. Rejected credit cards are usually a result of bad credit history and low credit scores. Banks look at the credit history of an individual, and if some problems have happened in the past that might lead to rejection, they will, most of the time, decline your application. There might get times when you receive a rejection even though you have a perfect credit history because a bank found some mistakes on your credit report. There are also times when credit card companies might be examining your application strictly for fraud purposes.

Credit Card Rejection/Approval Criteria

Reasons for a credit card rejection from India have been given according to various past rejection experiences that applicants have encountered. These reasons have thus been the most common around the world among all major banks. Credit card rejections usually occur due to several reasons, which include:

  • Irregular payment.
  • Lack of address proof.
  • Nonpresence of a bank statement.
  • Multiple requests for credit, and so on.

These credit card rejections happen for several reasons, but one big reason is a failure to meet the bank's eligibility criterion. This is not the main point to discuss here; the discussion here concerns avoiding being rejected.

Here are the ways and strategies to get credit card approval:

Strengthen the Basics First

There are several ways to make an application successful and avoid a credit card rejection. One needs to know the bank's requirements in terms of credit card approval, and then one must fulfill it to avoid rejection.

  • A bank would like to see that you have a steady income source, which is always consistent every month.
  • It would also like to see what your monthly expenses are minimal, and if possible, you should show that you have a high credit score.
  • A bank would like to see that you can be repaying the credit and have the motivation to use this card responsibly.

    Prepare & Arrange the Documentations

    After knowing the bank's credit card rejection criteria, the applicant needs to make a plan to meet these requirements and not waste time. One needs to know the bank's qualifications, and then he can start preparing his documents and proof. The following step would gather all the relevant documents together in a file and then hand over to the person dealing with the bank. This will get done to prevent any unnecessary delay.

    Understand the Credit Card Rejection Criteria

    The applicant needs to read the credit card rejection criteria and know whether he/she will be approved or not. He then needs to answer the questions specifically meant to assess his ability to meet the requirements. If he/she passes the eligibility criteria, then he/she should proceed to the next stage. One can get the details from the person handling the process. This would be someone in the bank.

    Different Types of Credit Cards You Can Apply for

    Credit Card Processing Procedure

    Credit card is a major payment mode in modern business or trade practice. Credit card processing is an easy electronic payment system that demands the merchant's electronic swiping of an interested customer's credit card over the credit card processing device. Because this credit card processing procedure generally involves a wide network of merchant and bank account owners, credit cards are becoming a popular trend among consumers. As such, credit card payments are the most widespread form of online shopping. As this credit card processing procedure has been quite beneficial in our daily lives, many merchants have entered into this business, and many new credit card processing companies have sprouted up to compete with the existing ones. For this reason, it is imperative to note some basic tips before you get started with a credit card processing Bank or Company.

      • Cashback Credit Cards
      • Rewards Credit Cards
      • Co-Branded Credit Cards
      • Lifestyle Credit Cards
      • Elite Credit Cards
      • Travel Credit Cards
      • One important thing to look for before getting started with a credit card processing procedure is whether they are providing this service to various kinds of credit cards. Most of the merchant accounts today only process credit cards for major credit cards like Visa or MasterCard.
      • Therefore, it makes sense to search for a credit card processing procedure that can process credit cards of all kinds, including those cards with lesser credit limits.
      • It will also be wise to select a credit card processing Bank or Company that offers merchant services to accept payment methods other than credit cards.
      • This will allow your merchant account to expand by adding different payment methods hence increasing your business profits.

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