Rejection Of Credit Card Application
Rejection of credit-card application
As time goes by, more and more people are joining the revolution called 'Credit card'. Yes, it is indeed a revolution.
Right now you needn't worry about how much money you carry with you if you go out shopping, just carrying this tiny piece of plastic (credit-card) is enough to assure you of a great shopping session.
You can use your credit-card to order things with just the use of your pc (on the world wide net). So the number of credit-card applications seems to be going up.
In any case, not all credit-card application is successful. A few credit-card applicants get denied too.
Let us find out why a credit-card company would reject a credit-card application if he has spent that much time and energy (and money) on trying to get new customers.
A simple reason for denial of credit card applications is human error for instance the error committed by you in filling out the credit-card application.
These can be small mistakes like a
mistyped phone no. or wrong name or the zip code could be wrong. Making mistakes is understandable, after all we are all humans and no human being is perfect. Another possible reason for denial of a credit-card application could be missing necessary details e.g. if you forgot to fill-in some necessary details in the application form.
Oftentimes, the credit-card application could be rejected because the application form has been filled-in in a handwriting which can't be read by the people processing your credit card applications.
In other cases, the sales representative (of the credit-card supplier) could have made a mistake in either depositing the form correctly or in guiding you in the filling of the credit card applications form (newly hired sales representatives can make such mistakes).
In any case, these human errors are just minor errors that can be corrected later on and hence the only impact would be in terms of the delay in receiving your credit-card.
The main and the most essential cause for rejection of credit-card applications is bad credit ratings for instance a negative credit history. If you have been using other credit-cards or if you have taken bank loans/mortgages in the past, you would have already build your credit rating.
If you have been making your bill and/or instalment payments in time (and in the correct amount), you already enjoy a good credit rating. In any case, if you have been irregular or if you have been defaulting on your payment dues, you would have developed a bad credit rating.
This credit rating is summated by credit bureaus who receive feeds from various credit suppliers. All credit-card applications are checked for the credit rating of the applicant and if it comes up as negative, the application is rejected outrightly.
So, these are the 2 most essential reasons for rejection of credit card application and you must pay heed to them (particularly the credit rating).