The chances of your application being accepted vary a lot from provider to provider; every credit card issuing company has their own, secret, eligibility criteria.
Each application you make leaves a trace on your credit report. This also makes things harder as you cannot increase your odds of getting accepted by applying to a number of places at once.
But we can at least know about the general eligibility criteria.
Assess and better your credit score
People with the best credit scores get the best deals. You should check your credit report before applying for a credit card. The credit report will give you an insight whether or not you are attractive to the companies.
You can instantly improve your credit score by making sure that there is no false information in your report. If you find errors, tell the credit bureau about that. India has four credit bureaus to assess your credit score -CIBIL, Equifax, CRIF High Mark, and Experian.
What are my available options?
The acceptance of your application depends a lot on personal circumstances and eligibility criteria of the lender.
And even if your application is successful does not mean you will get the advertised APR. Banks are supposed to give the advertised APR to only 51% of the applicants, and they can offer personalized APR to the rest of the applicants.
But if you have a strong credit rating then you will be offered the best APR. Also, you can have the liberty to choose the card based on your lifestyle. If you are not sure which credit card is best for you then analyze the different types of credit cards available like Rewards, Credit Builder, or Balance Transfer. Analyze your lifestyle and then choose which card fits your needs the best.
If you have poor credit then you have lesser options and the best is to improve your credit rating and then apply for a better card.
Check your eligibility for every card
Make use of online tools which takes the data from you and gives you the best possible credit cards and your chances of acceptance. From this data you need to analyze what are your best bets and what are your lows. You can avoid making too many applications by a little search beforehand.
Don’t apply to a lot of places
We have already talked a lot about why you should not apply to so many places for a credit card, but why? Every time you go to a lender for credit and rejected, it gets noticed and registered in your credit report. These traces make you appear hungry for credit and can cost you a lot when you apply again.
Bear in mind
The online tools are mere indicators of your chances and do not guarantee the probability. This has to depend on the banks that are affiliated to the online tool that you are using. Even the lists maybe biased and won’t show up all the credit cards. A real market research is always recommended.
Why your application got rejected?
Even after fixing up all the things and taking up all the measures, if your application gets rejected then you have the right to ask for the basis of your rejection. The bank may not be able to give you a detailed answer but they can tell you which credit agency they used to check your report.
The rejections are based on personal reasons but yet some have common themes. The most frequent reasons are:
- Less or no history of credit
- Missed payments or late payments
- Defaults in previous loans
- Multiple applications
Best of luck!