New Delhi: Planning to apply for a new credit card? While it may seem like a simple process, many applications get rejected due to small mistakes or missing details. A rejection not only delays your financial plans but can also affect your credit score. To avoid this, it’s important to understand what banks look for and prepare your application carefully.//
Even small mistakes like entering the wrong personal details or having a credit score that’s just a bit below the required limit can lead to your application being rejected. What may seem minor to you can appear as a risk to the bank. This can slow down the approval process or result in an outright denial. So, it’s important to know what lenders check and make sure your financial information is accurate before applying.
Here are some common reasons why credit card applications get rejected:
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Income and Existing Debts Matter
Each credit card has a minimum income requirement. If your income doesn’t meet that mark—or if you already have multiple EMIs running—banks may worry about your repayment ability and decline the application.
Low Credit Score Can Hurt Approval Chances
A score below 750 signals higher financial risk to lenders. It may suggest past delays in payments, making banks hesitant to approve new credit even if your finances are stable now.
Multiple Applications Can Work Against You
Applying for too many credit cards within a short time may make banks think you’re urgently seeking funds. This can reduce trust and lower your chances of getting approved.
Employment Stability is Important
Frequent job changes or short employment periods can make lenders nervous. A steady work history shows consistent income and increases your approval prospects.
Correct Details Are Essential
Any mismatch in personal information—like address, date of birth, or ID proof—can instantly lead to rejection. Banks need accurate details to verify your identity and financial profile.
Age and Outstanding Dues Can Also Affect Eligibility
Many credit cards are only issued to applicants aged between 21 and 60. Also, unpaid dues on current credit cards or loans signal poor repayment behaviour, reducing approval chances.
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