What to do When your Credit Card Application is Rejected?

As the competition among financial institutions continues, each one of them tries to make their products more worthwhile and lucrative. Fintech companies and NBFCs are also contributing their fair share to this competition.

They have already made the application process for a credit card less complicated and hassle-free. You can not only get an array of features with credit cards now but can also apply for one online within a few minutes. Top financial institutions can even approve your application in minutes. Now, you can apply for credit card without any trouble if you are above 18 and with a stable job or a business.

However, your application can still face rejection even if you have fulfilled all the required terms and conditions. In such cases, making another application might not be the best idea always.

The financial institution will insert the rejection details in your credit report. The next company that you apply with can also deny your application upon seeing the same in your credit report.

So, if you have faced a rejection recently, follow some of these points mentioned below before reapplying:

  1. Take a look at your credit report

Make sure to check your credit report after your application has been denied. You can do so easily online, and that too, for free. Thoroughly analyse that report and look for any incorrect information or errors. If you do come across one, report it as soon as possible to the authorities.

You can request the credit card company to review your application again once your credit report has been updated.

  • Improve your credit score

Your credit score will go down once your application is denied. Hence, it is critical to check and increase the same before applying again. If you already own other credit cards, you can use them to improve it.

Here are a few tips to recover your score –

  1. Pay your bills on time

Paying your card bills on time automatically improves your credit ratings.

  1. Always pay the total amount due

Although you have the options to pay either the total or the minimum amount due, try to clear the total outstanding amount always. Paying the minimum amount will lower your score.

  1. Keep your credit utilisation within 30%

Having your credit utilisation ratio under the 30% mark can have a positive effect on your CIBIL score. On the other hand, going above this makes you look credit hungry and lowers your score.

You may also avail a secured loan for improving your credit score if you don’t have a card.

Possessing a CIBIL score of 750 or above can help you apply for a credit card like Bajaj Finserv RBL Bank SuperCard effortlessly.

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Bajaj Finserv also provides pre-approved offers which make the process of availing financing straightforward and easy. You can get their pre-approved offers on credit cards, personal loans, home loans, business loans and several other financial products and services. Only provide some necessary pieces of information online to check your pre-approved offer.

  • Go for online marketplaces

Applying through online marketplaces is one of the alternatives to directly applying with the financial institutions. You can apply with multiple lenders online simultaneously without worrying about a drop in credit score. Online marketplaces conduct soft enquiries, which will not be much detrimental for your score.

Avail a secured card

You can also avail a secured credit card. These credit cards require a fixed deposit as collateral. The credit limit will be equal to or less than the fixed deposit amount.

Secured credit cards come with almost same features as unsecured cards. However, you will not be able to withdraw the fixed deposit as long as you hold the card. Furthermore, the provider will seize your fixed deposit if you default on your bill payments.

Knowing how to use a credit card properly can help you enjoy its benefits to the fullest. Follow the tips, and you will soon be eligible to apply for a new card.

Consider credit cards such as the Bajaj Finserv RBL Bank SuperCard. It comes with various industry-first features like 50-day interest-free ATM cash withdrawals as well as interest-free emergency loans for up to 90 days.