Poor credit scoreMost institutions set a standard credit score to assess the applications. A CIBIL score would be at least 750. A poor credit score will make the credit issuers a little averse to the application. If you don’t have an up to the mark credit score, it is very likely that you will be turned down by the credit card issuers as they would consider your application to be risky when it comes to recovering the funds.
Low incomeIf you are earning merely adequate salary to suffice your monthly financial needs then your credit application may get rejected. As you must pay interest on the amount that you spend with your credit card, the institutions look for a healthy bank balance. If your account is completely drained by the end of the month, then it might come like a red mark on your credit card application.
OccupationAll kinds of money lenders whether it is your loan provider or your credit card issuer, your occupation and your salary slip will be asked for credit card application. If your job conditions look too volatile and your salary is not adequate to pay the monthly credit card bills then there are high chances of your credit card application being turned down.
Multiple inquiriesMultiple credit card applications look bad on your profile. Don’t apply at too many institutions and don’t hoard too many credit cards unless until you have a valid reason to do so. Multiple enquiries will ultimately result into rejection of your credit card application.
Location verificationPhysical verification of your work place or your residential place may be conducted by credit card issuers. If you fail to give a proper address then your application will be rejected. You might be asked for some references as well in your application; however, that’s a very rare phenomenon.
With the number of credit card issuers in the market, it looks like buying credit card is a cakewalk. However, do not forget that issuers scrutinize your credit card applications very well before approving them.
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The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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