Credit cards are undoubtedly one of the biggest blessings of the financial world. Apart from the convenience of making cashless payments everywhere, they also have multiple other benefits to offer. With the different types of cards, such as shopping, travel and corporate credit cards available to consumers, there are opportunities to earn rewards while spending using your credit card.
All of these reasons combined have boosted the popularity of credit cards. Thus, most banks and credit card companies have made credit card applications more accessible. Nowadays, applicants can simply visit the bank’s official website, submit essential details, and soon, they get signed up for a credit card.
Applicants can also track their credit card application status with just a few clicks online. Undoubtedly, a contender for the best credit card in India, the Bajaj Finserv RBL Bank SuperCard, is a great example. To obtain the card, all you have to do is visit the Bajaj Finserv website, and register using your phone number. You will then hear from a representative, who will guide the applicant on the document submission process. Within a week, applicants can receive their credit cards at their residential address.
Hence, it is clear that the application process is often simple and convenient. However, applicants often make mistakes that result in the rejection of their credit card application. Here are 5 common mistakes that you should avoid while applying for a credit card online.
- Check for errors in your credit history
One of the primary eligibility criteria to obtain a credit card is to have a good credit history. It is determined by the credit score that is assigned by a credit bureau on the basis of your repayment history, hard and soft pulls, and remaining debt, among other factors. The higher your credit score, the better are your chances of being considered for the credit card. That said, it might not always be enough to repay your remaining debts, and be punctual with your credit card due dates. It may happen that your credit profile still shows a debt that you might have paid off long back. Such discrepancies hamper your credit score, thus portraying you as an irresponsible borrower. Thus, one should always look for such errors in their credit history and rectify them as soon as possible. If such things go unnoticed, it usually leads to the application getting rejected.
- Maintain a low debt-to-income ratio
Your debt-to-income or DTI ratio is the percentage of your gross monthly income that is spent towards paying off debts. This can be credit card bills or EMIs. If this ratio is high, then it indicates that you are financially overburdened, and might not be the ideal candidate for a new credit card. Therefore, it is always good to maintain a 30% ratio. You can do this by paying off existing debts before applying for a new credit card.
- Avoid making errors while filling the form
However basic it may sound, it is still one of the most common mistakes that applicants make. Even a minor mistake in your application form can cost you your credit card. Hence, it is recommended that you check your details multiple times before hitting the ‘Submit Application Form’ button.
- Show income proof
Credit cards are only handed out to people who are financially stable and can handle a line of credit. To prove this, you would need to show that you have a steady income. This can be done through salary slips, IT returns or current bank statements. Make sure you can produce one of these or any other proof that you have a steady income stream.
- Do not apply immediately after a rejection
This isn’t often highlighted but is a common mistake that people make. Every inquiry that the bank makes is registered by the credit bureau. Therefore, if you apply soon after your previous credit card application rejection, the issuer will come to know about it. This will give the impression that you are desperately in need of credit, and are facing financial difficulties. Needless to mention, it will definitely harm your chances of getting a credit card. Therefore, wait for a few months before applying again.
To obtain a new credit card apply online and get your hands on your new plastic card. However, the uncomplicated process does not mean that you take it for granted, and aren’t fastidious during the application process. Make sure that you avoid common mistakes that lead to thousands of rejections every month. By avoiding such mistakes, you are likely to get approved for your favorite credit card without any difficulties.