Rejecting credit card applications
As time goes by, more and more people are joining the revolution called “credit cards”. Yes, it is indeed a revolution. Now, when you go shopping, you don’t need to worry about how much cash you have in your pocket, just carrying this little piece of plastic (credit card) is enough to make sure you have a good shopping deal. You can use your credit card to order things from home (on the Internet). As a result, the number of credit card applications seems to be on the rise. However, not every credit card application turns out to be a physical credit card. Some credit card applications are also declined.
Let’s look at why a credit card provider would reject a credit card application when he has already spent so much time and effort (and money) trying to get new customers.
One obvious reason for rejecting a credit card application is human error, i.e. mistakes you make when filling out a credit card application. These may be minor errors, such as a wrong phone number or wrong name or the postal code may be wrong. It is normal to make mistakes; after all, we are human beings and no one can be called perfect. Another important reason for rejecting a credit card application may be the lack of mandatory information, i.e. when you forget to fill in some mandatory information on the credit card application form. Sometimes, credit card applications are rejected because the handwriting on the credit card application form is illegible to the person processing your credit card application. At other times, the sales representative (of the credit card provider) may have made a mistake in depositing the form correctly or in instructing you to fill out the credit card application (a mistake that newly hired sales representatives can make).
However, these human errors are only minor and can be corrected later, so the only effect is a delay in receiving your credit card. The main and most important reason for rejecting a credit card application is a bad credit rating, i.e. a negative credit history. If you have been using other credit cards or if you have accepted bank loans/mortgages in the past, you have built up your credit rating. If you have been paying your bills/installments on time (and for the correct amount), you will have earned a good credit rating. However, if you have not been regular, or if you have been behind on your payments, you will have developed a bad credit rating. This credit rating is calculated by the credit bureaus, which receive information from various credit providers. All credit card applications are checked for the applicant’s credit rating and if there is a negative credit rating, the application will be rejected outright.
Therefore, these are the two most important reasons why credit card applications are rejected and you must pay attention to them (especially credit rating).