We are living in the era of digital payment and payments through cards (either debit or credit). It became a matter of quite past when the world used to work on paper money. The world has witnessed a financial revolution, which made these plastic currencies (cards) king of money transactions around the globe. A credit card brings a lot of ease and comfort while paying the bills of your purchase everywhere. Then passing days are adding to the popularity of credit cards as they are so easy and comfortable to use. They let you free from the burden of carrying cash everywhere.
If you applied for a credit card and got rejected, then you are in the right place. Here is the complete guide on what to do for avoiding credit card rejection in future and how to turn your rejection into the instant approval credit card for the same:
Step 1: Dig deep and find out the root cause of the rejection
There must be a reason which made the issuing authority reject your application for a credit card. Hence, it becomes crucial to know the reason to get the solution for the same. Some of the reason which can make them turn down your application are:
1. Low Income
If your job profile is not that strong and the salary is low, then any institution hesitates in issuing a credit card as they doubt the payment of the credit card bills. The low salary of yours gives them the reason for the same.
2. Incorrect Information
The error while filling the form can be one of the reasons for your credit card application rejection. So, check your application twice before you handover them to the banking officers.
3. Bad Credit Score
The most crucial factor for your credit card rejection can be your bad credit score.
As a bad credit score, make an impression of you on them that you are likely not to repay your loans.
4. Financial Problems
One more reason for your credit card rejection can be you being overburdened with EMIs. This makes it obvious that you will not pay the credit card bills on time, or the chances of you doing so are high.
Step 2: Improve your Credit Score by paying loans on time.
It doesn’t matter whether your credit card application got rejected or not. You need to take special care to your credit score since a bad score can bring a lot of difficulty for you when you think of getting any loan or sone quick cash from any bank.
Keep in check your credit score healthy by following these simple steps.
1. Pay bills on time (or before the due date)
Pay all your bills like gas bills, electricity bills, internet bills, or any other utility bill exact in time as they can pose a positive effect on your credit score. It is always better to pay any kind of bill before the day as this can maintain your financial health also.
2. Pay EMIs of existing debts regularly
Always be very punctual in paying your EMIs. The thing that affects your credit score the most is you being irregular at paying your EMIs. Being on time can improve your credit score greatly at the end of the month.
3. Build Credit Score using a secured card
You can build your credit score by choosing the option of secured cards. These are cards issued to you by the banks against your assets or fixed deposits. You can get a secured card easily, even if you have a bad credit score. Using a secured card is very good for the health of your credit score.
Step 3: Choose. Inquire. Apply
As soon as your credit score is improved, you are eligible to get any of the credit cards available in the market, choose among them very carefully. Compare all the options available in the market and then make the decision to get any of them.
As there are a lot of companies offering credit cards, so you get a plethora of options to choose the best from them that suits you the most is itself a very exciting and tricky task. In such a scenario, for any reason, your credit card application got rejected, then don’t feel bad and let it spoil your dream of shopping and paying bills with your plastic buddy. There are always chances to improve anything and just keep in check your credit score health.