Getting a credit card is easy as most banks will be willing to get new customers. But, what if you applied for a credit card and your application got rejected? You need to check why your credit card application got rejected and don’t think that you don’t deserve to get a credit card. You must first figure out why your credit card application got rejected and then try to fix the problem.
Following are the common reasons why your credit card application could get rejected:
- You would’ve made a mistake while filling up the application form.
We all make mistakes at some point and Banks will not process the application if you have forgotten to fill up an important information or you have incorrectly filled it up. To avoid this mistake you must always double check the information filled in the application form before submitting it.
- You earn less than the minimum salary required.
Credit card is a tool from which you can borrow money to make purchases and pay it back later. The Banks will determine if you have the financial capacity to pay the amount you owe. They have a designated minimum income requirement and your application would be rejected if you are earning less than the minimum requirement. The minimum income required in Malaysia is RM24,000 per annum.
- You have no credit history.
If you have never borrowed before and there is no credit history at all, your application could get rejected even if you are meeting all the eligibility criteria. Lenders prefer to see that you have a credit history and they want to see how you have managed your debt. This gives the lenders the reassurance that you are capable of repaying your debt on time. You could instead take a secured credit card and there is more chances of it getting approved than the other types.
- You have been employed for a short period.
The Banks usually accept application from people who have been employed for at least 6 months with the same company. This requirement is set in place to ensure that the applicant has a stable income.
- You have not paid your current credit card bills regularly.
When you are applying for a new credit card, the Banks run a credit check and they can access your credit reports which has all the information of your borrowings and repayments. If you have not been paying towards your current credit cards, you will not get a new credit card. But, if you have been paying within the due date and have kept a low balance, the Banks won’t have an issue with giving you another credit card.
- You have been convicted as a fraud in the past.
Once you have been convicted it is never forgotten. Your record will follow you for life and influences you getting a job or a credit card. If the crime you committed is a monetary fraud, it is unlikely that you will get a new credit card.
- You already have too many credit cards.
Banks reject credit card applications if the applicant already has a large number of credit cards. Unless you have a massive income and your credit record is spotless, you cannot get more than 5 credit cards.
- You have applied for too many credit cards at a time.
The Banks usually don’t approve credit cards for those who have applied for too many credit cards at once. Every time you make an application, the Bank makes a hard check and it gets recorded in your credit report. The Bank’s treat this a red signal and stays away from giving you a credit card.
Banks usually check your credit history and there is nothing you can hide from them. Therefore, you need to keep a clean credit record and never miss a payments. The important thing to remember is that you must not apply for a credit card unless you are sure that you meet the requirements and your application will be accepted. You can approach the Banks and find out how much they can offer in credit and the interest that will be charged. After you have approached a few Banks, compare the cards and choose the one that suits your lifestyle.