Apply for Credit Card – Identifying the Reasons leading to Application Denial


Rejection is something that tends to leave one hurt and sunk in despair. Being rejected for college admission, a job, a date or anything else hurts, and facing rejection at the hands of credit card companies is not an exception. Rajesh, a media professional working in Bangalore, applied for a credit card with a renowned provider soon after securing a decent job. However, he was turned down by the company the very first time he applied for the required credit card owing to his monthly/annual income, which was below the eligible range established by the provider. To add to his woes, his sister, who was younger than him and still a college student, already owned a couple of credit cards.

credit cards

credit card apply

Whether it is for emergencies, for making big purchases at EMI’s and lower interest rates, or dealing with the expenses of an upcoming vacation, a credit card has become a basic necessity for people these days. Moreover, applying for a credit card is no longer a nerve-wrecking task. One can easily apply for credit card by filling and submitting the application forms available at the click of a mouse. This being the case, credit card companies have started taking several factors into consideration for the approval or rejection of an application. There are a number of reasons that could play a spoilsport in the process and lead to the denial of the application.

Poor Credit Score

One of the primary reasons behind the application form being thrown in the waste bin is the poor credit score. A decent credit score has become one of the most basic requirements for approving loans and credit card applications. Every company seeks customers with a minimum credit score (usually above 750), which presents a fair idea about the manner in which they would respond when it comes to repaying the debt.

Lower Monthly/Annual Earnings

Every credit card company has a unique list of eligibility conditions that customers must fulfill before they can apply for credit card, and a minimum monthly/annual income is one of them. Income proofs, including ITR, salary slips, and bank statement for the past couple of months, present a clear picture in front of the companies, which certainly help them gauge the repayment capacity of the applicant. The application form will surely find its way to the shredder in case the applicant doesn’t fall in the defined income limit.

Professional/Occupational Constraints

There are certain professions or occupations that are not trustworthy or credible in the eyes of the credit card providers. For individuals, who indulge in such kind of jobs or have a history with such professions, may find it difficult to get their applications approved. Moreover, the reputation of the organization that one works with also plays an important role in establishing the credibility of the applicant.

Card Collectors

People, who are fond of collecting more and more of these shiny, plastic-money instruments, might find themselves in trouble if they are looking forward to apply for credit card. The banks and credit card providers normally seek customers who can deal with their debts easily. Moreover, they want customers who remain loyal to their company and stick around for a long time.

Having multiple credit cards might not serve the purpose for them and can result in a denial.

These are only a few of the possible factors that might affect the chances of credit card application being approved or rejected. Among the aforementioned reasons, there are some things that cannot be avoided. However, something like credit score and income level is something that people can start working on before they apply for credit card with the respective banks and service providers.



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