In the event of incomplete KYC, your credit card application may be rejected.
Your CIBIL score is important for credit card, you know this. But many times despite having a great CIBIL score, applying for a credit card, many people feel disappointed. Their application is canceled. Actually there are many reasons behind this. You must know this. Many people have to face this kind of trouble. They do not understand what went wrong that the credit card was not issued. Come, here we discuss these things.
Incompatibility in income
Banks carefully examine how stable the income is while reviewing the loan applications, as it is considered to be the biggest reason for the credit card rejecting. Standing income credits may indicate the ability to manage responsibly. Irregular income sources can create doubts about the borrower’s ability to pay regularly.
Concerns increase when there is more loan
Your current financial commitments are important in credit decisions. That is, if you already have many loans, then they can also become a hindrance for you. Even though your credit score is good, but having many loans can increase worries. Even if you are paying on time, if there are many active loans against your income, it can negatively affect your credit card application.
Employment instability
Repeatedly changing jobs or getting a gap in employment increases the chances of getting credit card rejected. Banks can prioritize applicants with stable jobs, as it indicates financial reliability and stable income. According to Tata Capital, most banks usually look for your current employer to work continuously for at least six months.
Still applied more space
Every time you apply for a credit card, it causes a strict investigation on your credit report. If you submit several applications in a short time, the lender can see it as a financial crisis, which is a common cause of credit card rejection. Lenders i.e. banks often consider several applications to be a sign of the fact that you are struggling to manage your current credit.
Mistakes in application
If there are simple mistakes in your loan application, then your credit card loan application can be rejected immediately. Small mistakes, wrong income figures or mismatched addresses in your personal details can actually harm your opportunities. It is prudent to check everything again before submitting your credit card application.
Incomplete documents
In the event of incomplete KYC, your credit card application may be rejected. Ensure that all your identity, address and income documents are deposited, current, complete and accurately. No matter how good your credit score is due to missing or old documents, your credit card can be rejected by itself.
History of delay in payment
Last repayment behavior on loan or credit cards greatly affect your credit qualification. Even though your overall credit score is good, late EMI payment may be a matter of concern for banks. Therefore, it is necessary to pay continuous, timely on all your financial commitments.
Repeated address
Changing your housing address repeatedly can also cause your credit card rejecting. There may be a sign of uncertainty for banks and it is one of the causes of credit card rejection.
Latest business news