Are you frustrated every time getting an email stating “Your Credit Card Application Is Rejected”?

You’re also not given any reason as to why actually your credit card application was rejected. This is a common scenario in the financial world. Credit Cards especially in India are considered bad which is an absolute myth.

If you’re residing in India and you applied for a credit card and it is rejected then continue reading to know why that actually happened.

I explained clearly the possible reasons but not all which are unnecessary like all other websites/blogs did just to get their content long. In this article, I will pinpoint these 5 reasons your credit card was rejected and you can check which one was yours.

After that, you can always work on that and reapply again. If you have not yet read my review on “India’s First Metal Card By OneCard” then do check it out.

5 Reasons Your Credit Card Was Rejected

#1 - You’re Under 25 & Not Salaried

Banks undergoes internal criteria to check if the person is eligible for their credit cards. However, this very first criterion no matter which bank will be the person’s ability to pay off the bills from time to time.

Now some of you might say, that they give out to people who can’t pay and this will generate them more income due to the interest they charge. However, this is not true. They want you to use Credit Cards everywhere so they can charge the retailers the fee of 2.5% and therefore interest comes in second place.

Since you’re under 25 and go for the self-employed option then your credit card is most likely to get rejected. This is because you’re younger and in business with young people has a higher risk than older people.

Therefore, many banks issue red flags on such applications or you need to show them high-Income Tax Returns to get the credit card in case of Self-Employed.

However, if you go for salary, they will issue you a credit card either with a good limit or less limit but it won’t get rejected must of the time.

Since you’re a 9-5 person, you’re considered financially stable as you will be getting your hands on salary every month at a fixed time and you will be able to clear off the bills easily.

#2 - Credit Score & History

The second major reason is the Credit Score and the history. If you have a good credit score i.e, Above 750 and you can still be rejected for the credit card.

Why is it?

Well, Credit Score is simply made up of few things such as Timely Repayments, Enquiries (Hard), Loan Mix Ratio & so on.

If you have ever taken a loan of small tenure and then never did anything, then you’re left with just 1 loan and no credit history that proves that you’re worthy of paying the bill regularly on time.

Suppose you took a loan of 3 months tenure and completed it then never took any kind of loan. Your score might look impressive, i.e, above 750 but it won’t prove to banks that you pay on time.

Therefore, having a credit score and a good history is very important when applying for a credit card. If you don’t have a credit score or history, then feel free to apply for Secured Credit Cards by keeping a Fixed Deposit as collateral.

Major banks offer such Secured Credit Cards, such as,

  1. Kotak Mahindra Dream Different Credit Card
  2. ICICI Insta Easy Credit Card
  3. Axis Bank Insta Easy Credit Card
  4. SBI Card Unnati
  5. OneCard Lite (Get 110% Limit of FD)

After taking any of those cards listed above, you can then continue to use it every month and make a credit score and history for yourself. You have to do this at least for a year to get a good history and higher approval chances of a Credit Card.

#3 - Too Many Credit Cards

Yes, having too many credit cards will lead to rejection of your new credit card application and it’s not rocket science. Banks have clear access to your report and can see each and every loan and credit card you own through Credit Bureau like CIBIL, Experian, CRIF, & HighMark.

If you still like to apply for the new card that offers way better offers than your present cards then you need to do exactly the same as the guy above doing is.

You can close some of your credit cards and cut them into pieces. Wait for 6 months before reapplying for the new card and viola, this time you can get it.

Why does the bank do this?

It is simple. For example, let’s say, you have a total of 8 credit cards with an average limit of 1L and this will be about 8 Lakhs of the total credit limit per month.

However, on average, let’s take you to earn 10LPA which is 83k per month.

You have a total spending limit of 8 lakhs per month while you earn only 83,000 per month. You can recklessly spend sometimes and might start to default therefore, banks might take a step back for issuing you a credit card.

#4 - Address Verification Issues

Your credit card application is mostly likely to reject if the bank cannot exactly verify your address. If you had changed your residence quite a few times then it is more likely that the documents you’re giving doesn’t match your current residence.

In this case, I highly suggest you to first change address in your ID proof and then apply after 6 months waiting period. You will have high chances of approval this way.

#5 - Low Income

If you applied for a credit card whose requirements are higher than usual but you’re not aware of then you’re most likely to be rejected by the bank. Each and every credit card comes with different offers and for different individuals.

If you apply for credit cards that are meant for high income individuals and your salary isn’t upto their mark then they will simply reject your application.

In this case, I suggest you to take a look at the credit card you’re applying for and ask them it’s details or check for minimum income required for that card to apply then reapply after a waiting period of 6 months.


These are the top 5 reasons your credit card application was rejected. I hope you got it as to why your credit card was rejected. I mentioned 6 months waiting period before reapplying in this post because, it is recommended by credit experts to wait 6 months before reapplying as it can give an impression to bank that you’re desperate of getting a credit and is likely to default.

Hope you like the post, please do share with your friends and family and let them also know about the credit cards.