A credit card can boost your spending capacity, helping you out in times of need. However, not everyone can lay their hands on a credit card. This is because applications are often rejected by the issuers. If you’ve recently been declined a credit card, then you may want to know more about the reasons behind the rejection.

Here are a few credit card rejection reasons to help you figure out where you’ve gone wrong:

A History of Bad Credit

Your credit rating is an important factor in the approval process. For banks and financial companies, your credit score stands as testament to your repayment ability. If you have a low credit score, then you will definitely have a hard time obtaining a credit card.

Whenever you fail to repay any form of credit—whether it’s with regard to home loans, personal loans or credit card bills—your score takes a hit. And a low rating is one of the top reasons why credit card applications get rejected. You can improve your credit score by paying back your previous debts on time.

You Don’t Have a Credit History

If you’re applying for a credit card or a loan for the first time in your life, then you might face some difficulties. Financial companies look at your credit rating as an indicator of your ability to repay loans. But if you don’t have a credit history to begin with, then it’s nearly impossible for the issuer to gauge your repayment capacity.

In order to get past this barrier, it’s a good idea to apply for a credit card at the bank with whom you have been holding a savings or current account for a long time. This is because your bank can analyse your spending habits by going through your account history. You can even apply for a credit card with Bajaj Finserv.

Low Level of Income

Apart from your credit history, card-issuers also look at your income before applying or rejecting your application. Your credit card eligibility is negatively affected when you have a low level of income. In India, financial companies usually grant credit cards to those who have an income of at least INR 1,80,000 per annum.

Employed in a Relatively Unknown Company

Credit card issuers also consider the company where you’re employed during the approval process. If you work in a non-listed private firm that’s not well-known, then your chances of obtaining a credit card may be adversely affected. Financial companies often look at those employed in such companies as high-risk individuals who are prone to income fluctuations and designation exaggerations. Working at an unknown firm is another one of the top credit card rejection reasons in India.

If you’re looking to obtain a credit card from a trustworthy financial company, then consider the services provided by Bajaj Finserv. This reputed firm offers credit cards to both salaried and self-employed individuals. Depending upon your qualifications and requirements, you can choose from either a world credit card or a platinum card. Each time you swipe your card, you win reward points that can be redeemed to avail of an exciting range of benefits. Bajaj Finserv has credit card requirements that you can easily fulfil; and even the documents required for credit card acquisition have been kept at a minimum.

It’s essential to have your finances in order, before applying for a credit card. With a credit card in hand, you can easily make a multitude of purchases, and will never lack emergency funds.

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