Credit Card Application: Credit card has become a part of common man’s life today. There are many benefits of a credit card. You can pay for shopping or other bills up to a certain limit using a credit card. Your credit score gets better every time you pay your credit card bills on time. This makes it easy for you to get a loan from the bank. Through this, you can also buy any item on EMI.

If you are applying for a credit card then you should keep few things in mind. Banks consider many things before accepting or rejecting any credit card application. Know about the reasons due to which credit card application can be rejected.

If you change jobs quickly

  • Changing jobs frequently is considered a sign of an unstable career. Hence it is not suitable for your credit card application.
  • Giving credit cards to people who change jobs frequently is considered a bit risky.

Low salary

  • The bank looks at the repayment capacity of the applicant before issuing the credit card.
  • The bank can ask for Form 16 or salary slip from the applicant to check this.
  • If the annual income of the applicant does not fall within the limit fixed by the bank, then the application may be canceled.

Over limit

  • If you are taking a card for the first time, then do not get caught in the cycle of excessive limit. Doing so may result in cancellation of your application.
  • For the first time, use a basic card , with no annual fee credit card will be right for you. 
  • Build a good credit history with your first card and then apply for a premium card.

Bad credit score

  • A bad credit score is also a major reason for the rejection of credit card applications.
  • If you have defaulted on any of your loans or often late repayment of EMIs, your credit score gets spoiled.

Don’t apply for too many times

  • Banks or Non-Banking Financial Institutions (NBFCs) can check the credit history of the applicant.
  • Even if you have applied for multiple cards in multiple banks, your application tends to get rejected. 

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