There are several reasons why a credit card gets rejected. Let’s take a look at some of them to get an idea on what to do to make sure that credit card is not rejected.
Before the bank issues you a credit card, they check your income. Your credit card application will be rejected, if you do not meet the income eligibility criteria.
For banks to issue a credit card, you must have a minimum income of Rs 15,000 to 17,000 a month. This is done because banks think that you would struggle to repay your credit card dues if your income is low.
Your credit card application will be rejected by the bank, if you have a bad credit score. The credit score is one of the important factors that are considered for issuing a credit card. Every month the bank sends details of your repayment history of the loans you have availed, to CIBIL. If you have not paid the EMIs or defaulted on your loans, the credit score will be affected.
Usually, banks do not issue credit cards to minors and senior citizens. Your credit card application will be accepted only if you are between 18-65 years of age. Banks do not issue credit cards to minors and senior citizens, because they think that they do not have the necessary income to avail a credit card.
If the Company where you work is not reputed or well known, banks might deny that credit card. Banks are concerned that you might lose the job or this Company could shut down. If you don’t have a stable job, how will you repay the credit card bills?
If this is the first credit card, banks could hesitate to give you the credit card. It would be easier for you to avail a credit card, if you take it from a bank where you already have an account (An existing relationship).Then you do not have to ask the question, Why is my credit card denied?