Failure to the credit card: reasons how to increase the chances of approval?

A credit card is a very convenient tool, now you will rarely meet a person who would not use the credit card.

This is a plastic card with a monetary limit provided by the Bank to use the borrower. Cash is issued for a certain period (in the case of credit cards, the term may not be fixed) under a certain percentage.

Simple words, a citizen receives funds to use from the bank, undertakes to make a certain amount of funds monthly, taking into account interest rates.

The credit card is convenient to use in its own way, unlike consumer loan, for example, it can be paid in stores, make purchases, remove or translate funds. And of course, the convenience is that you can safely get a specific product or thing without waiting for wages. But, they give credit cards not everyone. Let’s deal with why, and what can be taken in this situation.

When receiving an application for a credit card, the Bank is engaged in checking the borrower’s data. One of the priority points of interest to the bank is the credit history of the borrower.

Credit history This can be said credit resume. Having studied credit history, the bank can draw conclusions about what borrower you are. If overdue payments were made in the past, or open loans that were not paid — the credit history is spoiled.

Credit history may not be absent if you have not previously taken loans and installments. In this case, the Bank cannot conclude about what borrower you are. To such clients, banks are wary. Here to approve the application for a credit card or not — the bank makes a decision independently, at its discretion. If there is no credit history at all — this is also not a sentence, it can be done with time.

Previously, the term Credit Load was not used. But, currently, this is a rather important aspect when considering the application for a loan agreement (in our case a credit card).

This is an association of all financial obligations to banks, and the ratio of wages. We introduced a credit burden so that citizens commensurately acquired credit obligations, and did not turn out that the borrower’s monthly payment is greater than its salary.

Therefore, when you are applying for a credit card, and you already have another credit, the Bank will consider financial obligations at once everybody — to understand whether you can pay new credit obligations, or it will be difficult.

Another important point on which banks are watching when considering the application for credit cards is the level of your income. Banks preferably give credit cards to people with a high level of income. After all, it is important for the bank that the money taken is returned to the bank. If you have a low income, you can also expect a failure to issue a credit card.

We wish you successful registration of credit cards, and we hope that our article was useful to you.

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