While choosing the perfect plastic buddy from a plethora of options can be an exciting task, Credit Card rejection can spoil your dreams of shopping with your plastic mate. If you ever face Credit Card rejection, don’t be disappointed and follow these three simple steps to avoid rejection in the future. Here’s how you can turn a Credit Card rejection into approval.
Gone are the days when the world used to revolve around paper money. There has been a financial revolution around the world, resulting in plastic money dethroning cash as the king of money transactions.
Credit Cards have risen in popularity and now every individual owns one or aspires to. While choosing the perfect plastic buddy from a plethora of options can be an exciting task, Credit Card rejection can spoil your dreams of shopping with your plastic mate. If you ever face Credit Card rejection, don’t be disappointed and follow these three simple steps to avoid rejection in the future. Here’s how you can turn Credit Card rejection into approval:
Step 1: Find the cause of rejection
The bank must have rejected your Credit Card application for a reason, of course. So, it is necessary to know what went wrong by finding the cause of rejection. A Credit Card application can be turned down because of the following reasons:
Bad Credit Score
Before approving the Credit Card application, the bank checks your credit report and Credit Score. If the Credit Score is badly hit due to previous delays in payment of debt or bills, the bank will most likely reject your application.
Additional Reading: Here’s Why You Should Check Your Credit Report Throughout Your Life
If your income is low or your job profile is not stable, then banks may hesitate to sanction Credit Cards because of their doubt in your ability to pay the Credit Card bill in the future.
Something as minor as a spelling mistake or incorrect information in documents can lead to Credit Card rejection. So, don’t forget to recheck the application multiple times before submitting it!
If you already have your hands full due to EMIs of existing debts or if you are going through a financial crisis, then the bank can reject your Credit Card application based on the grounds of uncertainty in paying bills.
Read This: 6 Common Reasons For Personal Loan Rejection
Step 2: Build your Credit Score
Irrespective of the cause of Credit Card rejection, it is necessary to keep your Credit Score healthy before applying in the future. Even if you have a good Credit Score, it won’t last long if you stop taking efforts to maintain it. Here are a few things you can do to improve your Credit Score:
Pay bills on time (or before the due date)
Electricity bill, gas bill, telephone bill, mobile bill, internet bill or any other utility bills should be paid on time. It is even better if these bills are paid before the last date. This will have a positive impact on your Credit Score.
Pay EMIs of existing debts regularly
If you have a loan or debt on your head, make sure you clear it by regularly paying EMIs on time. If you don’t default on EMIs, your Credit Score will improve with every passing month.
Build Credit Score using a secured card
To build Credit Score, one could opt for secured cards that are issued by the bank against Fixed Deposits or property. Despite having a bad Credit Score, one can get approval for a secured card. Use the secured card to shop and pay the Credit Card bills on time. And it would eventually lead to a better Credit Score.
Additional Reading: Terrific Ways To Build Your Credit Score
Step 3: Choose. Inquire. Apply
Once you have improved your Credit Score, zero in on the Credit Card you want based on your needs. Before applying for the card, check the website of the Credit Card provider and inquire about the prerequisites for the approval of the card. Make sure that the Credit Card application won’t be rejected based on your income, job profile or Credit Score. (A rejected application will reflect on your credit report!) Once you get a satisfactory reply to all your queries, go ahead and apply for your plastic soulmate.