Credit Card Applications Rejection – 7 Reasons How to Avoid It | AU Small Finance Bank
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7 Reasons Why Your Credit Card Application May Get Rejected

    A Credit Card is a financial instrument that helps you meet various short-term needs, be it purchasing a gadget, medical emergency, paying bills, or others. Even though applying for a Credit Card has become a lot easier these days, there is a long list of Credit Card eligibility conditions that one needs to fulfil. 

    Every lender follows a certain Credit Card application criterion before issuing the card. So, there may be times when your Credit Card application may get rejected due to some reason or the other. Has your Credit Card request gotten declined recently? Let’s get to know the major reasons for Credit Card application rejection.

     

    7 reasons why your Credit Card application may get declined

    1. Bad credit score

    A credit score is one of the most important reasons for a Credit Card application rejection. Your credit score determines your creditworthiness. If you have a low credit score, your Credit Card application can get rejected. There are multiple reasons for low credit scores; these include delay in EMI payment, debt, defaulting on repayment of previous loans, and others. 

     

    2. Low income

    Every bank has an internal income criterion for issuing Credit Cards. If you fail to meet the required income bracket, the Credit Card company may think that you can’t afford the repayments and not issue you a Credit Card. 

     

    3. Unstable employment

    Credit Card companies favour applicants with a stable job history. If you are someone who changes jobs frequently, it goes on to show that you are not dependable, and it can be the reason for your Credit Card application rejection.

     

    4. Errors in the application form

    Any erroneous information entered on the application form, like wrong or different address, can be enough for the lender to reject your Credit Card application. You must not miss crucial information or enter wrong details while filling in forms and make sure you fulfil all such Credit Card requirements.

     

    5. Multiple applications

    Even when you make too many Credit Card applications in a short span of time, your Credit Card application may get rejected. Multiple applications can go on to show that you have not been able to manage your finances.

     

    6. Late bill payments

    If you are unable to manage your utility bill payments, an overdraft account, etc., it suggests that you are struggling to meet everyday expenses.

     

    7. KYC issues

    Your KYC status needs to be verified for you to get access to a Credit Card. If any discrepancy is found in the physical verification of your address or any other information, it can be a reason for Credit Card application rejection.

     

    What is the process of Credit Card application?

    You can apply for a Credit Card easily with AU Small Finance Bank, which is the largest and a well-known Small Finance Bank in India, offering exemplary banking services to customers.

    You can choose from any of the below AU Credit Card offerings:

    Each AU Credit Card is uniquely curated and lets you enjoy a plethora of lifestyle and several other benefits. So, whether you are staying in a city or a remote location in India, you can easily apply for a Credit Card with us.

    You can apply for a Credit Card online via our AU 0101 App/NetBanking if you are already an AU Small Finance Bank customer. Alternatively, you can also visit our nearest branch to proceed with the Credit Card application process.

    Read More: AU Credit Card Features, Eligibility & Benefits

     

    Key Takeaways:

    Rejection of a Credit Card application is quite common. So, to get an instant approval for Credit Card, here’s what you can do:

    • You must pay all your dues on time, as this will improve your credit score
    • Wait for a better time to re-apply
    • Check if there are any errors in your credit report so that you can get them rectified by the Credit Bureau