2. Low income
Credit card companies always compete to offer credit cards with higher credit limits. However, they will gauge your repayment capacity beforehand. You would be asked to submit income proofs such as IT returns, salary slips for past few months or Form 16 along with the credit card application. The minimum salary specified by the lenders is usually in the range of Rs. 84,000 - 1,50,000 per annum. Your application is sure to get rejected if you don't fall within these limits.
Even if you fall within this range, there is no guarantee that your credit card will be approved. Reading the eligibility conditions of a credit card before applying for it is a great idea.
3. Occupation
Certain occupations are not treated positively by the credit card companies. Past experiences from such type of jobs may not have been great for the companies. Hence, they tend to reject applications from employees of such occupations though they fulfill the minimum criteria needed. Reputation of your organisation would also be an important factor for the credit card issuer. If you earn a decent salary but work with a not-so-reputed company, the credit card issuing company may not feel secure in lending to you.
4. Mistakes in the application form
This is a common error that a lot of people make. Simple errors while filling the application form can lead to rejection of the product you need.
It could be company name, location, income or anything else which the credit card issuer considers necessary detail.
5. Having multiple cards
If you already have multiple credit cards, your credit application could well be declined. Companies prefer people who can service debt comfortably. Having multiple credit cards could make the issuer feel you are likely to land in trouble soon.
Credit card companies also want you to stick to the credit card. Hence, they do not prefer those who frequently opt for balance transfer options for the existing cards.
6. Physical verification
The final step for a credit card company would be a physical verification of the employee.
These companies send people to verify your home and office address. Therefore, it is paramout that the address specified in your application is correct. It also gives them a sense of your lifestyle.
CONCLUSION
InvestmentYogi.com is a leading personal finance portal. Disclaimer: All information in this article has been provided by InvestmentYogi.com and NDTV Profit is not responsible for the accuracy and completeness of the same.