Is your credit card application getting denied? Know the reasons

economictimes.indiatimes.com:

There could be multiple reasons behind the denial of your credit card applications. Sometimes, there could be a mismatch between the specific credit card you applied for and your creditworthiness.

Other times, there might be unforeseen reasons contributing to the denial that you haven’t considered.

In this discussion, we’ll explore the top reasons why a credit card application gets denied, how poor financial practices often lead to rejection, and the strategies to increase your chances of approval in future applications.

Top reasons why a credit card application gets rejected
Here are the top reasons why your credit card application might be getting rejected:

• Low credit score: Different credit cards have different creditworthiness requirements. In India, a credit score above 750 and close to 900 is generally considered a good score for approval. Various factors determine your credit score. A history of late payments, unpaid bills, charge-offs, or maxing out your cards can negatively impact your credit score and lead to application denials.
• Limited or no credit history: Many banks prefer applicants with a steady credit history. Even if you are a financially responsible customer, the lack of a well-established credit history can make it challenging to qualify for popular cards.
• Low income: Generally, for a credit card application, you need to list your current sources of income. Your income plays a significant role in the bank’s decision to approve your credit card application.
  A card-issuing bank usually favours customers with higher incomes or lower debt-to-income ratios. You are required to submit your salary slips, income tax returns, or Form 16 to demonstrate your income.
• Poor track record: If you’ve previously