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Rejection of credit card application
As time goes on, more and more individuals are joining the movement called ‘Credit card’. Yes, it’s truly a revolution. Now you don’t need to fret about how much cash you have in your pocket when you go shopping; just carrying this small piece of plastic (credit card) is enough to assure you of a good shopping experience. You can use your credit card to order things from the comfort of your home (on the internet). So the number of credit card applications seems to be on the rise. However, not every credit card application turns into a physical credit card. Some credit card applications get declined, too.
Let’s check why a credit card provider would reject a credit card application when they have spent so much time and energy (and money) on wooing new customers.
The Dark Side of Credit Card Applications: Why Your Request May Be Denied
One obvious reason for rejection of a credit card application is human error i.e. an error committed by you in filling up the credit card application. These can be small mistakes like an incorrect telephone number or incorrect name or the postal code might be incorrect. It’s normal to make mistakes; after all, we are human beings, and no human being can be considered perfect. Another strong reason for rejection of a credit card application could be missing mandatory information i.e. when you forgot to fill-in some mandatory information in the credit card application form. Sometimes, the credit card application could be rejected because the credit card application form has been filled in a handwriting that is illegible to the people processing your credit card application. At other times, the sales representative (of the credit card provider) could have made a mistake in either depositing the form correctly or in guiding you in the filling of the credit card application form (newly hired sales representatives can make such mistakes).
Don't Get Discouraged: Understanding the Top Reasons for Credit Card Rejection
However, these human errors are just minor errors that can be corrected later on and hence the only impact would be in terms of the delay in receiving your credit card. The main and most important cause for rejection of credit card applications is poor credit ratings, i.e. a negative credit history. If you have been using other credit cards or if you have taken bank loans/mortgages in the past, you would have already built your credit rating. If you have been making your bill/installment payments in time (and in the correct amount), you would have already acquired a good credit rating. However, if you have been irregular or if you have been defaulting on your payment dues, you would have developed a bad credit rating. This credit rating is calculated by credit bureaus who receive feeds from various credit providers. All credit card applications are checked for the credit rating of the requestor, and if it comes up as negative, the application is rejected outright.
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So, these are the 2 most important reasons for rejection of a credit card application, and you must pay heed to them (especially the credit rating).
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