Best Guide to Turn your Credit Card rejection into Approval

Best Guide to Turn your Credit Card rejection into Approval

In today’s world, credit cards have risen in popularity, and every individual either owns one or aspires to own one. Apply credit card from among a plethora of options can be quite an excruciating task. While applying for one, credit card rejection might spoil your dreams of saving big on your purchases.

Credit Card rejection

It is advised not to get disappointed and follow these simple steps for turning your Credit Card rejection into approval:

To find the cause of rejection

It is necessary to find out what went wrong and the cause of rejection. The bank must have rejected your credit card application because of a reason. A credit card application can be rejected because of the following reasons:

Bad Credit Score

The bank checks and verifies your credit report and credit score before approving the credit card application. For some reason, if the credit score is not good due to delays in payment of debt or bills previously, the bank is most likely to reject your application.

Low Income

The banks might hesitate to sanction credit cards if your job profile is not stable, and your income is low. The banks may doubt in your ability to pay the credit card bill in the future and therefore, reject your application.

Incorrect Information

Minor things such as incorrect information or a spelling mistake in documents can lead to rejection of the credit card application.

Financial issues

The bank can reject your credit card application if you have your hands full due to EMIs of existing debts based on the grounds of uncertainty in bill payments.

Building your credit score

It is essential to keep your credit score healthy before applying for a credit card in the future. Having a good credit score and maintaining it requires some effort. Here are a few simple steps to improve your credit score:

  1. Clearing EMIs of existing debts regularly: If you had taken a loan or a debt, make sure you clear it by paying EMIs on time, regularly.

  2. Paying bills within the due date: The bills that need to be paid on time include electricity bills, telephone bills, gas bills, internet bills, mobile bill or any other utility bills. It will be even better if these bills are paid before the last date.

  3. Building your credit score using a secured card: One can opt for secured cards that are issued by the bank against property, security deposit or Fixed Deposit. One can get approval for a secured card even after having a bad credit score. Using the secured card to shop and paying the credit card bills on time will eventually lead to a better credit score.

Choose, inquire and apply

Select the credit card you want based on your needs, once you have checked your credit score. Check the website of the credit card provider and find about the prerequisites required for the approval of the card, before applying for the card. Make sure of the fact that the credit card application will not be rejected based on your job profile, income or credit score.

The more applications for a credit card you put in, the more it is likely that you would get turned down again. If your credit card application is denied, it is better to wait until you know why it was rejected before applying for another credit card. You’ll receive a letter from the issuer of the credit card within 7 to 10 business days, stating the reasons for rejection of your credit card application.

Tips for getting your credit card application approved

1) Keep a tab on your credit report: Check your credit report regularly. It will help you identify the negative errors which may hamper your credit score. If you find anything suspicious in your report, contact the Credit Bureau agency and request for an investigation and correction.

2) Keep your credit utilization ratio low: Credit utilization ratio means how much credit you currently owe divided by your available credit limit. It is always advisable to keep your credit utilization ratio of less than 30 percent. If you have a more than 30% ratio, you can lower it down by paying your existing balance as soon as possible.

3) Improve your debt-to-income ratio: This is the amount of debt you have compared to your income. Most of the credit card issuers use this information as a general indication of your ability to pay the debt. To improve this ratio, tey to pay down your pending debts on time and include all sources of income in your application.

4) Show a good savings history: This will be very helpful if you plan to apply for a new loan or a credit card with a bank or an NBFC. Try to open a savings bank account and make regular deposits in it. It will improve your internal bank credit rating, which will increase your credit card approval chances.

5) Show responsible repayment behavior: There is no quick way to fix up any default or negative error on your credit report. You need to demonstrate that you can be a responsible borrower by making your payments on time. This will help you to build up a new history that shows you as a responsible lender that will increase your chances of getting your credit card application approved.

6) Avoid making frequent credit card applications: Making too many credit card applications during a short period will result in having too many credit inquiries. This creates a negative impression in the eyes of the lenders, so if you are rejected while making a credit card application, take a rest for some time and then make a fresh credit card application.

Conclusion: It looks very unpleasant if the lender hasn’t approved your credit card application because of one or more reasons. But there are certain things you can do to change that so that you can prevent it from happening again and again while making future applications. Before applying for credit cards, always check your credit card eligibility and income, so that you are able to pay bills on time. And the most important thing do not forget to check your credit report and rectifying the negative errors in it before you make a new application. So, keep the factors mentioned above in your mind and increase your chances of credit card approval when you apply for your next card.

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