These days a credit card holds a special place in the financial world. Maybe for self-freedom or instant cash, credit plays an important role in every individual’s life. So whenever an individual enters into the professional world, they instantly apply for a credit card. But what if your application got rejected by the bank? Don’t be harassed as there may be many reasons for this rejection which banks may not disclose. However, this calls for a careful analysis of your financial profile so that the next another credit card application must not be rejected by the bank. Take a look at some of the possible reasons for the rejection and tips to work on it:
Work on your Credit Report
The major reason that stood first in the list is your bad credit report. Take a print of your credit report via any online finance portal and carefully analyze the credit score. If the score is less than 750, then the banks will instantaneously reject your credit card application. A low score is possibly due to your EMI overdue, bad finances, non-payment of bills, etc. Also, check for any other discrepancies in the credit report and get it fixed as earliest as possible.
Build Credit Score
As said above, a low score creates a lot of hurdles in the approval of your credit card application. So, a score below 750 needs to be fixed by earliest. Start paying your EMIs, bills, credit behavior on regular intervals and on fix time. This will help in increasing the Credit Score.
Also, if you credit usage on the current cards is more than 40% then bring it down now. Check your credit score regularly and monthly as any changes need time to get fix.
Go for a Right Match
Most of the time, your credit application gets rejected due to the wrong choice of lenders. It must be remembered that every time you inquire about a credit card from any banks, it gets added to your credit report as hard inquiries. The bank associates check your credit behavior every time you apply for it. This affects your credit report that further leads to credit card application rejection.
In order to save yourselves for these hard inquiries, you must go for an online financial market place with the presence of multiple lenders. Inquiring here does not affect your credit score as well as a credit report. The online marketplace is full of experts who can help you in finding the right credit card as per your needs and demand.
Opt for Secured Credit Card
You can also opt for a secured credit card, in case you need it urgently. These cards are issued on behalf of your fixed deposits with the concerned bank. With minimum paperwork and hassle-free documentation, a secured credit card can be issued immediately by the banks. These cards also help in maintaining your credit profile thereby increasing your credit score. However, the credit limit depends on the principal amount of your fixed deposit.
So don’t panic if your credit card application is rejected. Follow these points and build your credit behaviour to have access to your favourite credit card.