What are the possible reasons why my application was not approved?

1. Low Credit Bureau Score: A high bureau score is preferred for an application to be approved. A low bureau score might be a result of previous defaults on loans or credit cards, high credit utilisation, irregular due payments, high unsecured debts, and a higher number of loan inquiries. 

Tip: It is recommended to check your credit report and look for the above-mentioned elements which are impacting your score.

2. Lack of Credit History: Having a long history in credit bureau shows financial maturity and positively contributes to a healthy credit score.

Tip: Regular repayments of long-term loans and credit cards help in building a mature credit profile. It is recommended to start with a credit card and maintain a low-to-medium utilisation.

3. Poor Loan Repayment History: Non-payment, late payment of your EMI’s and credit card bills negatively affect your credit score.

Tip: Always pay your EMI and credit card dues on time. It is advisable to clear any outstanding payments soon as possible. 

4. High Existing Debt: Having a high number of existing debt obligations reduces your ability to have sufficient money left for further loan repayments.

Tip: Maintain a healthy debt-to-income ratio by assuring that your debt obligations are not amounting to a very high percentage of your income.

5. Location Verification Failure: In most of the cases, a physical verification of applicant’s address is carried out by the bank. Inaccurate address specified in credit card application may lead to rejection of your application.

Tip:  It is particularly important that the address you have specified in the credit card application is accurate, with valid address proof documents.

6. Document Verification failure: As per requirements from regulators, it is mandatory to carry out KYC (Know Your Customer) for any new to bank customers. For existing customers, KYC is required whenever critical details are updated. Failure to verify the KYC either digitally or physically may lead to rejection of credit card application.