14 Reasons For Credit Card Application Rejection

Last Updated : Oct. 3, 2022, 4:29 p.m.

Nowadays the credit cards have become the basic necessity for many individuals because it helps them to save a lot of extra penny from the monthly expenses. But due to some reason many individuals credit card application gets rejected and they are unable to use a credit card. Therefore, in this article, you can see 14 different reasons for credit card application rejection. Go through all the reasons and see which reason is responsible that the banks have declined your credit card application form. Try to rectify those errors before applying for a credit card. These reasons might be the stone in your path to use a credit card.

Reasons Why the Banks Decline Credit Card Application

• Negative Credit Score
• Unqualified Income
• Flaws in the Application Form
• Having Multiple Credit Cards
• Occupation History
• Location Not Verified
• Living in Rural Areas
• Having Multiple Loans
• Existing Credit Card Balance is unpaid
• Your Application has Recently Rejected
• Unqualified Age
• Bad Relationship with the Bank
• De-Listed Organisation
• Signature Mismatching

Negative Credit Score

Before applying for a credit card, you must always see your Cibil Score whether it is above 750 or not. Maybe a negative credit score can be a reason for your credit card rejection. Some banks have the eligibility criteria that your Cibil Score must be more than 750 and therefore the bank is declining your credit card application form.

Unqualified Income

The banks have certain eligibility criteria for different credit cards depending upon the individual’s income. If your income doesn’t qualify the eligibility criteria for the credit card you are applying for then you can’t take any credit card. May be your income would be the reason for rejection of the credit card application form.

Flaws in the Application Form

Everyone has to fill the credit card application form before applying for it. So, you must revise all the information that you have entered or written in the form like name, income, date of birth and many more. Therefore, any kind of mistake in the credit card application forms leads to rejection and you’ll be not able to use the credit card.

Having Multiple Credit Cards

Almost all banks check the existing loan of the individual before issuing a new credit card . So, if you have multiple running loans and achieved your maximum credit facility then the banks will deny the request to issue a new credit card. You must first lower down your debts and then apply for the credit card because having a lot of debt might be the reason for rejection of the credit card application.

Existing Credit Card Balance is Unpaid

If you are using multiple credit cards and haven’t paid the bill of any of them then it will create a negative impact on your credit history and no bank will accept your credit card application. So, you must try to pay the credit card bills on time otherwise the bank will deny the application every time you apply for a credit card .

Your Application has Recently been Rejected

There are some banks that have a specified tenure for the credit card application. If the bank has rejected your application then you have to wait for a certain period of time to place your next request. The tenure period may be the reason for the rejection of your credit card request.

Unqualified Age

Mostly all the banks have a minimum age criterion of 21 years to apply for a credit card. If you are unable to prove your age above 21 years then the banks will not entertain your credit card application form. Your unqualified age must be a possible reason that the banks are rejecting your credit card application form.

Bad Relationship with the Bank

If you fulfill all the eligibility criteria for applying for credit card and still the bank is rejecting your application then there must be an existence of a bad relationship with the bank. Although you have improved your Cibil Score and have a good repayment track, if in past you have done anything wrong regarding the repayment of credit card of a certain bank then you can’t get a credit card from the same bank. This can be a possible reason why the bank is rejecting your credit card request.

De-Listed Organisation

It is not always necessary to have a handsome income to apply for a credit card. The banks also check the individual’s company in which he is working. If the bank finds that the organization is in the blacklisted category then it will not issue the credit card. So this might be your reason for credit card application rejection.

Signature Mis-Matching

If you are applying for a credit card through a hard copy of form then make sure that your signature matches the signature you have done in your savings or current account. If the signature on the form doesn’t match with the registered signature then the banks might reject your credit card application.

Conclusion

Well, you have 14 different reasons for credit card application rejection. Explore all the reasons and find out due to which reason your last credit card application form was rejected. You must try not to make the same mistake that you have made earlier. After reading all the reasons and rectifying your mistakes, the banks will definitely accept your credit card application form.