In this post we will solve one of the most common doubts of users of financial services Why do banks reject my application for a credit card? If you applied for a credit card and your application was rejected but you don’t know why. Careless in this post we tell you the reasons why banks reject your credit card application. Remember that there are different factors that can cause your application to be rejected, such as your job, credit bureau status, active credits, age, previous agreements, etc.
What is a credit card application?
It is a process that people carry out in order to obtain a credit cardIn this process, the applicants provide their personal data, and authorize the consultation of the credit history. This process can be online or directly at the bank facilities.
It may interest you: Process to apply for any credit card on the market.
Who can apply for credit cards?
The credit cards can be requested by all persons who meet the requirements established by the bank, these requirements are generally:
- Length of employment.
- Be of age.
- Proof of address.
- Minimum income.
- Experience with another card.
Why is my credit card application rejected?
There are many reasons why banks or financial institutions often reject credit card applications. Sometimes people who meet all the requirements are also rejected when requesting a plastic. and this is due to any of the following situations:
When we make a credit card request we must verify income these income can be demonstrated with:
- Deposits to savings accounts
- Proof of payroll.
- Use of other credit cards.
- Tax payment
But if we cannot verify the amount that the card asks us to be authorized, the bank will reject the request.
Look for a credit card that does not ask for minimum monthly income, and request them or simply request cards that are within your income range.
High-risk or non-formal employment.
The vast majority of application processes ask us for information about our current employment, or ask us for information about how we earn income, Many applications are rejected when applicants have jobs without verifiable income or informal jobs, they are also usually rejected when the applicant has a high-risk job.
When you apply for a new card and you can’t verify your employment, always tell the truthSay you work in the informal field or you own your own business, never lie as they may request information about your employment.
Not being able to prove income.
Another important reason why applications are rejected is why the applicant cannot prove income, sometimes we do not have payroll stubs, or payment of taxes.
The best thing you can do in these cases is to open a debit account at the institution where you plan to apply for the credit cardIn this way, the bank checks that if you have income, I recommend that you deposit to your account every month and that it is in motion.
Have no credit history.
One of the The most frequent causes of rejection is not having a credit historyWhen we find ourselves in this situation, the bank cannot know if we are going to pay or not pay the loan since it does not have information about us.
Nowadays There are different Fintech credit cards that can be requested from an application and do not request credit history, you can start building history with these cards and later request the one that interests you.
Negative credit history.
The most common cause of rejection is bad creditWhen we find ourselves in this situation, it is practically impossible for them to grant you a new card, since the bank is sure of your behavior with other credits.
DO NOT apply for new credits, do not allow institutions to review your credit history as this affects the futureWe recommend that you pay your debts first, then request a guaranteed card and start building trust.
You already have many credit cards
A cause that seems not to be, is requesting more cards when we have too many cardsRegardless of whether they are up to date, the bank may deny your application since having too much credit can always be a risk for banking institutions.
Our recommendation is to improve the cards we already haveIf we need more credit we can request an increase to our line, we can also change cards for example gold for platinum etc.
Not meeting the requirements established by the bank.
A very obvious reason why the card is rejected is because we cannot meet the requirements that the plastic asks of usFor example, a monthly income of 20,000 pesos when we only have an income of 10,000 pesos.
Always research what the requirements of each card are and only request those that are within your ability and meet the requirements, avoid requesting cards too many times.
The company Trans Unión de México, manages a profile for each person who is registered in the Credit Bureau. EThis SCORE or record is based on our credit behaviorMany companies take it into account and if we are below the average requested by the bank, they will reject us.
Do not apply for credit cards if you know that you are in a credit bureau, with a negative profile. Pay all your credits first and then apply for credit cards.
Too many requests in a small amount of time
As we have already seen in other reasons, making too many requests can affect our score, which will affect our ability to request new cards. This is because each request makes an entry to our credit history and the more requests the more distrust.
Only apply for credit cards that interest you If they reject it, request it again within 3 months.
Another cause of denial of credit cards are the previous agreements. Mmany times we stop paying a loan and carry out a negotiation so that our credit is settled, but we must remember that the agreements, which usually end in removes always leave a red mark in the credit bureau.
When you make an agreement make sure you pay the full amount. You can request to make monthly or weekly payments, but you must always pay the total, in this way your credit will be settled and it will not remain with a red note in the credit bureau.