Applied for a credit card too many times but never got approved?
Â As simple as it may seem, getting a credit card is not that easy. The long list of eligibility conditions for various types of credit cards being the reason. However, with the right financial background and proper management of your finances, you can easily get approval for a credit card. With a healthy financial history, and a regular income, getting a credit card would not be any big of a task.
Even if you still fail to get approval for a credit card, donât get disheartened. We recommend you look for either of these reasons for your credit card rejection-
- Check if you meet all the eligibility conditions, such as the required income level, credit score or financial history
- Ensure that you have submitted all the required documents, with clear personal and professional details
- The bank/NBFC (non-banking financial company) fails to verify all the information provided in the application form
- The organisation that you are employed with, is blacklisted by the said bank/NBFC
- The bank has some other internal eligibility criteria which you fail to meetÂ
In order to find a valid reason behind the rejection of your application, you may contact the bank representative.
Important Things to Know Before Getting Your First Credit Card
While getting a credit card is a huge milestone for many, it is not as complicated a tool to use, if you are careful with it. Understanding the basics of how a credit card works its basic features can save you a lot of time, money and aggravation and may eventually help your financial status in the long run.Â Â
We have listed down a few points that you must be completely aware of, before applying for a credit card for yourself-
- Gain complete information about all the types of credit cards and then make the right choice considering your needs
- Apply for a credit card only when you are confident of having a stable income, whether or not you are employed
- Begin with using your first credit card at a low credit limit. This will ensure that you only spend a nominal amount on your card and do not fall into any kind of debt traps later
- Since this is going to be your first credit card, you need to be extra cautious about the important terms and conditions of your card. Chances are that the bank representative may not highlight all the additional hidden expenses to you at the beginning. Hence, you need to act smart!
- Learn about all the other benefits offered by your bank such as the card’s APR*(Annual Percentage Range), applicable annual fees on your credit card, rewards and offers, etc.
*The APR usually ranges from 30%-40%
- Read about the applicable interest charges on your credit card upon late payment of your credit amount
- The grace period is the time period between the date of your purchase and the date when you have to repay the credit amount to your bank. Usually, the grace period is of 30 days but it is still important to confirm the same with your bank before getting your first credit card