Credit Card application rejected? Here are five tips you need to keep in mind before reapplying.
Did you recently face a Credit Card rejection? Aww…don’t be so sad! You can surely reapply. All you need to do is keep a few things in mind to give you a better chance the next time round. The most important thing to remember is that the whole process of reapplying for a Credit Card can turn out to be slightly stressful.
The key here is to keep your cool and get everything right when you reapply. Rejections are never easy to deal with, but if you follow the right strategy, getting an approval at the second go isn’t that difficult.
Additional Reading: Your First Aid Kit After A Credit Card Rejection
Here are five crucial tips you need to keep in mind before reapplying for a Credit Card.
- Wait It Out
In this case, timing is one of the most crucial things. Before reapplying for another Credit Card, make sure you wait for a sufficient period. How long do you need to wait? Well, that might vary from person to person. It depends on a number of factors like the bank involved, their policies, your profile, your Credit Score etc.
On an average, experts recommend waiting for at least six months before applying again. One of the most common reasons for a Credit Card rejection is—too many hard inquiries. In case you have a poor Credit Score, you might want to consider waiting for longer. Also, use this time to work on your Credit Score and improve it.
Additional Reading: A 3-Step Guide To Turn Credit Card Rejection Into Approval
- Understand The Reasons
If your Credit Card application was rejected, there has to be an underlying reason for it. Finding out this reason will not only help you understand what went wrong the first time, it will also prepare you for your next application. Some of the most common reasons for rejection include a low income, too many other loans and Credit Cards, frequent late EMI/Credit Card payments, poor Credit Score etc.
Unless you know what went wrong, you won’t know what to fix. Even if it involves some bit of research, don’t take this step lightly.
- Work On Your Financial Situation
Another key step in avoiding a possible Credit Card rejection in future is—improving your financial situation. There’s no shortcut to this. You’ll have to sit and analyse your finances, understand where you are going wrong and then find the fix. If you’re already in a lot of debt, it’s a smart move to avoid more credit. Similarly, if you’ve been swiping your Credit Card everywhere, now’s a good time to stop doing that.
Are you one of those people who keep forgetting to pay their Credit Card bills, utility bills and EMIs on time? If yes, start fixing your finances by changing this first.
Psst…the BankBazaar mobile app sends you timely Credit Card/EMI payment reminders.
Additional Reading: Top 10 Reasons For Credit Card Application Rejection
- Choose The Right Card
Instead of randomly choosing a Credit Card and applying for it, you must understand the profile requirements for each and apply accordingly. Keep your profile and Credit Score in mind before you choose to randomly apply for a card.
Different banks might have different policies and credit limits for your profile. Always apply for cards that fall in your range. Don’t aim too high. It significantly increases your chances of rejection.
- Check Your Credit Report
You might have avoided this for a long time, but now it’s high time you check your credit report. It can tell you exactly what you need to know. Before approving your loan/Credit Card applications, all banks check your Credit Score. They need to know if you’re a responsible borrower or not.
Psst…you can check your latest Experian Credit Score in less than three minutes on our website.
Additional Reading: Here’s Why You Should Check Your Credit Report Throughout Your Life
Don’t wait! Fix all these leaks to ensure your next Credit Card application gets approved. Need more dope about Credit Cards? We have everything you need to know along with some kickass offers! Check them out now.