All your documents were submitted well in time, yet your credit card application was declined? Don’t feel low. You still have a chance to get the next one approved. While most of the banks may deny an explanation as to why they declined your application, but few reasons are obvious. These could be a low credit score, recent high debt, or low income. Here are a few things that one should keep in mind before submitting a credit card application.
INSPECT YOUR CREDIT REPORT
Before applying for the credit card, the first thing that one should do is to make sure to withdraw their account’s credit report, which is easily available online. Examine your credit report in-depth and make sure that your credit score is above 750. Well, if your credit score is below 750 than it is because of your poor credit behavior in the past.
You can also request the respective bank to issue you a credit report. This report is issued free of cost but only once in a year. You can check for various discrepancies in the report that lead to the declination of your credit card application.
IMPROVE YOUR CREDIT SCORE:
You might not have paid your bills and EMI’s well in time, or you might have made a huge debt recently, or you might have a low income. These could be several reasons for the rejection of your credit card application and a low credit score. Before applying for a credit card, one should know the difference between a good credit score and a bad credit score.
The main facet of building a good credit score is to keep a regular check of your credit score. You should stay patient because your good credit behavior will build your good credit score in certain months. Once your good credit score is built, it becomes more evident for your application to be accepted.
MAKE SURE YOU HAVE FILLED THE APPLICATION FORM CORRECTLY:
Before submitting your application form, make sure that you have filled the necessary fields appropriately. Any inaccuracy in the form can lead to the declination of your credit card application.
SEEK HELP FROM ONLINE LENDING MARKETPLACE FOR THE RELEVANT MATCH:
Applying through a relevant marketplace marks a significant difference in your application for the credit card or any loan. The online marketplace helps you to know which bank’s interest will match your interest. This increases the chances of your credit card application to be accepted. One of the major mistakes made by borrowers is to apply with multiple lenders at the same time. Before applying, you should keep in mind that each of your applications is registered in your credit report as hard inquiries and a lot of hard inquiries in a limited period of time might reflect you as ‘credit hungry.’
You can register with multiple lenders using the online marketplace this will not affect your credit report; thus, not affecting your credit score. Once your credit score turns out to be good, it becomes easy for your credit card application to be accepted.
GO FOR A SECURED CREDIT CARD:
Are you facing trouble in getting your credit card application accepted? Then you must go for a secured credit card. Secured credit cards are readily available and issued well in time. There is minimal documentation requirement; thus, helping you in getting your credit card application accepted quickly.
Secured credit cards are solely issued against your fixed deposit account with the particular bank. People usually go for a secured credit card when their credit behavior is not good; that is when their credit score is low.
CHECK THE ELIGIBILITY CRITERIA:
Before applying for a credit card, you must check the eligibility criteria for the application of the credit card. Before the final submission of the form ensure that you meet all the eligibility criteria as the declination of the form afterward will affect your credit score.
Keeping these things in mind before applying will surely improve the chances of your credit card application to be accepted.
Read also: Credit cards tips for low income people in India