Applying for a loan or credit card is very easy, but getting the application approved is not. Banks and financial situations consider multiple factors and conduct various checks on applicants before they approve or reject any application. They want to be sure of the individual who they are lending money to.
These are some of the common reasons because of which requests for loan or credit card are rejected by banks and financial institutions. In case of home loans, there are other factors such as legal verification and property valuation that can get loan applications rejected.
Rejection of loan or credit cards can have a negative impact on your credit score and you might not get any loans or credit card in the future either. To prevent this, you must ensure that you pay your debts on time, have a stable employment and income, provide the correct documents and check the eligibility criteria of a product before applying for it.
First of all, make sure that you clear all your outstanding credit card bills and EMIs on time. Once you do that, you can expect your credit score to improve. If you have a credit card, make sure to use it smartly and spend only which you can pay. You can apply for a secured loan where you will have to pledge a property as collateral. You can avail these types of loans at lower interest rates. Once you do that, make sure you pay back the EMI on time. This will improve your credit score.
It is recommended that you gain a considerable amount of work experience before applying for a credit card. Most banks prefer their customers have a work experience between 1 year and 2 years. Once you have gained a considerable amount of work experience, you can apply for a credit card.
You can apply for a credit card provided you can repay the bill on time. Before applying for one do compare various credit cards including the joining and the annual fee. There are cards where you are not required to pay any joining or annual fee. Once you have been issued a card, use it smartly and pay the bill on time. This will result in your credit score improving. The bank may offer the option of increasing your credit limit as well.
You must be at least 18 years old to be eligible to apply for a credit card. In case you still want to apply for a credit card, you must have a guardian who will probably apply for a credit card on your behalf. There are add-on cards where a family member provided, he/she meets the eligibility criteria and holds a credit card can get an add-on card issued to you.
If you can show the bank that you will be able to repay the credit card bills on a timely basis then the bank may consider allowing you to opt for a credit card. Having a job shows the bank that you can repay the credit card bill or loan EMI on time. If you are not a salaried individual but a self-employed individual, you can still apply for a credit card.
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