How To Get Your Credit Card Application Approved: Tips & Tricks

If your credit card application has been recently declined, there might be a reason or two. It is important for applicants to analyse the likely reasons for rejection and make amends before applying the next time around. Do not feel dejected or lose hope. Generally, banks are not very likely to give you an explanation for the rejection.

Here are some tips to follow to ensure speedy and successful approval of your credit card application:

Take a look at your credit score: The first thing to do if you are applying for a credit card is to check if you have a good track record and a good credit score. Yes! You can have a credit score even without owning a credit card. Generally, people who do not have a credit card assume that they do not have a credit history and thus tend to be very careless with their finances. This is usually where the problem lies. Remember that there are several factors that determine how trustworthy you are as a borrower. This includes how you pay your bills, loans such as personal loans, car loans, etc. All this will reflect in your credit score before you even apply for a credit card! A poor payment history and track record will lead to rejection. So, mend these aspects before you send out the application.

What is a credit score?
A credit score is a three-digit number that acts as an indicator that will determine of reliable you are as a borrower. This is a very crucial factor that helps determine how much credit you will be eligible for in the future. It is also one of the main factors that will help you get your credit card application approved without any hassle. Ideally, a good credit score is a figure that hovers around the 700 mark.
How to improve your credit score:

• Do not make late bills payments
• Manage your debt in an effective manner
• Have a reasonable debt to income ratio
• Do not let debt get piled up
• If you already have a credit card and are planning to apply for a second one, use your credit card wisely

Make sure you are applying for a card you are eligible for: Another essential point to keep in mind is to apply for a card that you qualify for. There are many types of credit cards, and they come with different credit limits. You will be given an approval for a card based on your income level and track record. So, if your income is Rs.30,000 per month and the credit limit is Rs.50,000 per month on the card you have applied for, the card will not be granted. Most banks may not cite an income criterion, and therefore it is up to the customer to make that calculation and apply for a card accordingly.

Go, paperless: One of the most important things to keep in mind while sending out an application is the approach. If you submit a paper application form, it is likely for the application to go unnoticed or sometimes, even get misplaced. There is also the need to make an effort to go all the way to the bank. Why not explore the paperless method and submit your credit card application online? Use can also use an app to apply for a credit card.

Make sure you are paying bills: Be it your mobile bill or other types of utility bills, if you are not making bill payments on time or defaulting payments, it is very likely that your credit history is getting affected.

Do not default loan payments: If you already have any existing debts such as personal loans, education loans, home loans, car loans, etc., be disciplined enough to pay your EMIs on time without fail. Any default in this will have an adverse effect, and you will then be classified as an unreliable borrower. This is possibly one of the strongest reasons why banks reject credit card applications.

Also, here is a list of other factors that will affect your approval:

• If you have a relatively high loan balance
• If you have too many loans
• If you have a track record of loan default
• If you have missed a couple of EMI payments

Avoid making too many cold calls: The worst thing you can do is to apply for too many credit card at the same time. Especially if you have faced rejection in the recent past. It is important to first look into the causes of rejection before sending out a new/fresh credit card application. Also, if you already have more than one credit card, this will also have a negative impact.

Ask for reference: If you ask an existing customer to give you a reference, it might up your game and increase your chances of getting your application approved. So, keep this in mind, when you send out an application the next time around.

Check if your credit score is wrong
Sometimes, there may be some type of misrepresentation in identity, and your credit score may not be accurate. So, make sure you check if there is any discrepancy. How do you know this? Check and see if you have made late payments on bills or loans. If you have been disciplined with your payments and your credit score still does not look positive, there could be some type of misrepresentation in such a case.
Final words
Before sending out an application, know where you stand and do not blindly blame the bank. Make an effort to work on your shortcomings and the send out forms. Getting a credit card approval is a big step forward indeed and can give you a lot of financial freedom.