As time advances, a growing number of people are joining the revolution called’Credit card’. Yes, it’s really a revolution. Now you don’t need to worry about how much money you have in your pocket when you go shopping, just carrying this little bit of plastic (credit card) is sufficient to guarantee you of a good shopping treat. You can use your credit card to purchase things from the comfort of your home (on the internet). So that the number of credit card software appears to be on the rise. But not every credit card program becomes a physical credit card. Some credit card applications get rejected too.
Let’s check why a credit card supplier would refuse a charge card application when he’s spent so much energy and time (and money) on wooing new customers.
The reasons of rejections
One clear reason for rejection of credit card program is human error i.e. the error committed by you in filling up the credit card software. These can be small mistakes like a wrong telephone number or wrong name or the postal code might be wrong. Another strong reason for rejection of a credit card program could be missing mandatory data i.e. when you forgot to fill-in some compulsory data in the credit card application type. Sometimes, the credit card application could be reversed because the credit card application type has been filled-in at a handwriting that is illegible to the people processing credit card application. At other times, the sales agent (of the credit card provider ) might have made a mistake in depositing the form properly or in guiding you in the filling of the credit card application form (recently hired sales representatives can make such errors ).
Nonetheless, these human mistakes are only minor errors which may be adjusted later on and hence the only impact would be with respect to the delay in receiving your credit card. The main and the most important cause for rejection of credit card applications is bad credit ratings i.e. a negative credit rating. If you’ve been using other credit cards if you have taken bank loans/mortgages in the past, you would have already build your credit rating. In case you’ve been making your bill/instalment payments in time (and in the correct amount), you’d have already obtained a fantastic credit score. But in case you’ve been irregular or if you have been defaulting on your own payment stinks, you’d have developed a bad credit score. This credit score is calculated by credit bureaus who receive feeds from different credit providers.
These are the 2 most important reasons for rejection of credit card application and you have to pay heed to them (particularly the credit score).