We hear that companies request individuals with fixed income to apply for credit cards. You can apply for a credit card with just one click of a mouse at home. However, applying for a credit card is not easy. Banks issue a credit card only after proper verification has been done. Let's see what factors account for card rejection.
Lack of minimum age
Minimum age of 18 is required to obtain a loan or credit card. If the applicant is of 18 to 21 years of age, banks ask for another person to be added, a joint applicant. Banks also asks for income declaration form. People between the ages of 18 and 21 are more likely to reject a credit card application if their income is poor or a co-applicant is absent. Young children like this are able to carry a limited amount of affiliate cards with the help of adults.
Lack Of Credit History
Credit history is an important factor in issuing loans or credit cards. Banks are willing to issue a credit card only if they have a good credit score. Banks may refuse to issue a credit card in the events of low credit score and if there is any failure in loan repayment. A credit card is issued if you have at least 700 credit scores (CIBIL Score).
Most banks now offer credit cards based on the income they earn. Basic credit cards are issued to those with an annual income of 75,000 to 150,000. Banks are willing to issue a card to those with a fixed income. The rules for the issuance of premium credit cards varies with the bank. Banks provide special provisions to self-employed and salaried employees while issuing credit cards.
Issuing of cards to those who are in insecure careers and those who are in adventurous jobs is considered a risky affair. Banks will reject such appeals even if they adopt the minimum income clause. Even the reputation of the employer's name is taken into account. The company may not issue a credit card to its employees if the company does not have a good reputation for attractive pay. If a person changes from one company to another without consistently finding a job, it can affect credit card issuance.
Mistakes When Applying
At the time of filling the application, the name of the company, address, income, contact phone number, personal address and other details must be given. Even a small appropriate information by you may consider Banks as an act of misleading. At the time of inspection, if the bank representative is not satisfied with the job or living conditions, it is possible to reject the application.
Having More EMIs Or Having More Credit Cards
Issuing a new loan or credit card can be difficult if you already have large debts. Banks expect that up to 50 percent of earnings will be spent on home maintenance. The credit card application is rejected if the remaining 50% of the earnings match the EMIs of the loans already taken. There is no strict rule about how many cards one can have. However, banks are generally reluctant to issue new cards for an individual with more than 5 cards.
These are just a few of the things that companies consider when issuing a credit card. Their rules may vary depending on the company. If you see credit card rejection for any of these reasons, it is best to try to correct them. If already rejected, analyze the reasons and try to keep the card in order.
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