September 24, 2022

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Smart tips to avoid credit card rejection

Dealing with credit card rejections can be tough. Mostly because you never get an answer as to why it got rejected. But getting your credit card application approved is not as difficult as it looks. If a set of guidelines are followed, you can easily get your hands on your preferred credit card. Here are a few smart tips that you follow.

  1. Maintain a good credit score

As basic as it sounds, no other tip can beat this. A good credit score of usually 750 and above is the key to credit card eligibility. Your credit score takes into account both credit card debts and tradeline or installment debt (mortgages). To maintain a good credit score, you need to make sure to pay all your bills on time, as agreed, every month. Be it a product EMI or your home loan installments, treat each one as responsibly as the other. A late payment is a big part of what can negatively influence your credit score.
A high credit utilization ratio can also have a bad impact on your credit profile. The credit utilization ratio basically denotes the percentage of a borrower’s total available credit that is currently being utilized. A credit utilization ratio above 30% is usually not considered good by credit card issuers.

  1. Have stable employment

    A stable salary is a big criterion for every bank when they’re considering your credit card application. If you can show verifiable proof of your source of income, then that convinces your credit card issuers that you’re capable of paying your credit card bills efficiently. You might show your IT returns or your salary slip as proof.
  1. Income must be sufficient

    Having a sufficient income is absolutely necessary if you want your credit card approved. Credit card issuers will take a keen look into your income because they want to be assured that you’re capable of paying back your debts. Hence, you have to make sure that your income is on par with the expectations of your issuer.
  2. Low debt-to-income ratio

    Debt-to-income (DTI) ratio dictates the percentage of your income that goes into paying back debts. If that ratio is high, it indicates that you have too many debts or that you take further debts to pay off your existing debts. This puts across a bad impression as a credit card applicant. To lessen your DTI ratio, you could limit your debts to only one at a time.
  3. Check for errors in your credit history

    Often your credit card history shows a loan that you have paid off as an outstanding amount. These kinds of errors are common and can be lethal for your credit card applications. To avoid them, make sure that you regularly check up on your credit history and rectify any such errors as soon as possible.
  4. Apply for a secured credit card

    A lot of credit card companies are wary of issuing credit cards to people with bad credit scores. If that’s the case for you, you can try getting your hands on a secured credit card. Secured credit cards are issued only if you deposit a certain amount of cash as collateral. Secured credit cards have a lower credit limit to offer but also come at very low-interest rates.
  5. Avoid errors in your application form

    Errors in your application form, no matter how minute they are, can easily lead to rejection. Credit card companies look very closely into every detail you provide because they are actually taking huge risks with every credit card they issue. Therefore, double-check your application carefully before you go on to submit it.
  6. Wait before you apply again

If you had previously applied for a credit card and got rejected, make sure to not apply for another one immediately after. That makes you look desperate for credit and isn’t considered a good thing by credit card issuers. Hence, it’s advisable to wait for a month or two before you apply again.

The Bajaj Finserv RBL Bank SuperCard is a pre-approved credit card with the perks of 4 cards in 1. You can withdraw interest-free cash, enjoy cashback on a down payment, avail of interest-free loans, and enjoy many more impressive benefits. You can also avail a personal loan for 90 days on your cash limit with a nominal interest rate of 1.16% per month.