Why Your Application For Credit Card Can Be Declined
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Rejection is one of the things that can demoralize you in this life. In case your credit card application is rejected by the bank, it can leave you in a state of disappointment and confusion. The best things that you should know is that when you identify why your application was rejected, you will have the opportunity to change your mistakes for the better future. Some of the best reasons why your credit card application can be rejected are:
1. When your income is below the minimum that is required
Financial experts from EasyFind Fintech Singapore in Singapore have revealed that for you to be allowed to apply for a credit card you must have a minimum annual income of about $30,000. However what you should know that every credit card has its own minimum income that you have to meet. It is therefore good for you to make sure that you meet the minimum income that is required before you start to apply.
2. Unstable source of income
For you to get your application for the credit to be approved by the bank, you must prove to the accounting staff that you have a stable source of income which can assist you in paying off your debts. In case you have a long history of unemployment, it will prove that you do not have any source that you rely on getting income from.
It is also recommended by EasyCredit Money Lenders Directory that if you have just been transferred to a new job or you are a new employee, you should wait for few months before you apply for the credit card. This is because the many banks require the credit card application to submit at least 3 of the latest salary payslips. In case you are self-employed or you earn a salary based on commission, you may be required to submit an assessment notice of about 2 years.
3. Low credit score
The credit score is a major factor that is used by many money lenders in Singapore so that they can assess if you have the ability to pay your debts. Some of the factors that can affect your credit score are:
Too many loan applications: Whenever a bank wants to get a report about your credit they will examine your file before they determine if you are able to apply for a loan. In case they found out that you have too many unpaid debts they will decline your application.
History of missed or late payment: If the banks find out that you like paying your debts late or avoid in paying your debts at all, it will indicate that you might not pay your future credit card debt.
High usage of credit: Even though you might be paying your debts at the required time, it is good that you limit on the amount of credit that you use with the other credit cards that you have. It is good that you limit to use the credit below 30%, this is because if you use the credit more it will ruin your credit score.
Some of the ways on how to improve your credit score are:
Give a timeline for your credit card application: It is good that you do not apply for too many credit card applications at the same time. The best thing that you can do is to allow for some months to elapse before you apply for another one.
Terminate the unused credit cards: If you have so many credit cards that you do not use, you can terminate them. However, it is good that you keep the older credit cards since the record of payments can improve your credit score.
Timely payment of your bills: If you have been paying your debts within the stipulated period your credit score will improve.
4. Incomplete application
When you are applying for a credit card you will be required to fill in an application form which in many cases will seem to be an easy process. What you should know is that if you accidentally missed to fill in some vital information, you did not attach all the required documents or you entered incorrect details then automatically your credit card application will be rejected.
It is good that you apply for the credit card online since it can assist you in limiting the human error. You will get that the online forms do prompt the applicants when they have left out some important details. When you are applying you should not forget to attach all the important documents.
Some of the documents that you may need to attach when you are applying a credit card are:
– A valid passport,
– national identity card and the employment pass in case you are all the required documents or you entered incorrect details then automatically your credit card application will be rejected.
It is good that you apply for the credit card online since it can assist you in limiting the human error. You will get that the online forms do prompt the applicants when they have left out some important details.
When you are applying you should not forget to attach all the important documents. Some of the documents that you may need to attach when you are applying a credit card are: A valid passport, national identity card and the employment pass in case you are a foreigner
– The latest payslips generated by a computer
– Latest 1-2 years notice assessment of your income tax
– Latest 6-12 months statement of CPF
– NRIC Back and front copy
You should not give up when the application your credit card has been rejected. When you have identified the main reasons why credit card was rejected by the bank, you have to take a step forward to amend them for you to increase the chance of being approved in future. You should not forget to wait for some months to elapse before you start to apply again for the credit card.