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Learn the key reasons why your Axis Bank credit card application could be rejected and how to improve your chances of approval with actionable tips.
Getting your Axis Bank credit card application rejected can be frustrating, but understanding why it was declined can help you get instant approval in the future. Several factors contribute to why your application might not be accepted.
The reasons could range from your credit score to your income level, or even your existing debt. Knowing these reasons can guide you in rectifying the issues and preparing for a successful application next time.
There are several common reasons why your Axis Bank credit card application may get rejected. Avoid the following mistakes when applying next time:
If you don't have a credit history or your credit score is too low, Axis Bank may reject your application. A healthy credit score is vital for any credit card issuer.
Frequent credit card applications or loan requests within a short period can make you appear desperate for credit, leading to rejection.
If you have existing loans (personal loans, auto loans, etc.) with high outstanding balances, Axis Bank may doubt your ability to repay additional debt, resulting in rejection.
High credit utilisation across multiple cards can be a red flag. If your credit card balances exceed 30% of your total credit limit, it can negatively affect your application.
Credit card companies, including Axis Bank, require a minimum income level to ensure that you can manage monthly repayments. If you don’t meet their income criteria, you may be rejected.
Having too many active credit cards can make Axis Bank view you as a high-risk customer. This can lead to your application being rejected.
Late payments on your existing credit cards or loans negatively affect your credit score. This can make it difficult for you to get approved for another credit card.
If you have ever settled credit card debt (i.e., negotiated to pay less than what you owe), it can seriously harm your credit history and make approval for a new card nearly impossible.
Axis Bank, like most banks, has basic eligibility requirements such as being over 23 years of age, having stable employment, and earning a regular income. Failing to meet these conditions can lead to rejection.
Axis Bank evaluates several key criteria when reviewing credit card applications. These criteria determine whether you are eligible for approval:
A good credit score is one of the most important criteria for approval. Axis Bank typically looks for a score of 750 or higher to approve your application.
Axis Bank checks your income to assess your ability to repay credit card dues. Applicants who fail to meet the minimum income threshold may face rejection.
A high debt-to-income ratio, which shows that you have too much existing debt relative to your income, is a common reason for rejection.
If you already have several credit cards and are using more than 30% of your available credit, this can raise red flags for Axis Bank, suggesting you might be overleveraged.
A stable and consistent employment history is important. Frequent job changes or periods of unemployment may result in rejection, as it raises concerns about your financial stability.
Most banks, including Axis Bank, require applicants to be at least 23 years old and within a certain age bracket (usually under 60) to qualify for a credit card.
If you've had issues with previous credit cards, such as defaults or settlements, it will negatively affect your chances of approval.
While an Axis Bank credit card rejection does not directly lower your credit score, the process can still impact your credit report in a few ways:
Every time you apply for a credit card, the bank conducts a hard inquiry (or hard pull) on your credit report. This results in a temporary dip in your credit score. Although the impact is usually minor, multiple applications within a short period can cause more significant drops, as it suggests you may be seeking too much credit.
If you face multiple credit card rejections, the hard inquiries from each application accumulate. This could lower your score further, making it more difficult to get approved in the future. Lenders tend to be wary of applicants with numerous recent rejections, as it raises concerns about their creditworthiness.
If your rejection was due to high loan balances or credit card usage, these issues will remain on your credit report, continuing to affect your score. High utilisation ratios (above 30%) or large outstanding loans will hurt your chances of approval in the future.
After a rejection, it may take time to improve your credit score. Working on reducing debt, maintaining low credit card balances, and making timely payments can help you recover your score over time. The more effort you put into improving your credit profile, the better your chances of approval in the future.
Though the rejection itself doesn't directly affect your score, the factors leading to it, such as high debt levels, frequent hard inquiries, will continue to have an impact. It's essential to focus on improving these factors before reapplying.
If your Axis Bank credit card application was rejected, here are some actionable steps to improve your chances when you reapply:
If your application was rejected, it’s advisable to wait for at least 6 months to a year before reapplying. During this time, focus on improving your credit profile, reducing outstanding debts, and addressing any issues that led to rejection.
Request a free credit report from one of the credit bureaus and thoroughly review it for errors or inaccuracies. If you find any discrepancies, dispute them to ensure that your report is accurate. Correcting mistakes can improve your credit score, which can help with future applications.
If your credit score is the issue, start focusing on improving it. This includes making timely payments, reducing your credit card balances, and ensuring that your credit utilisation ratio stays under 30%. A higher score increases your chances of approval.
If you have a low credit score or insufficient income, consider applying for a credit card with a co-signer who has a good credit history. A co-signer can reduce the risk for the bank and increase the chances of approval. However, this option usually requires close friends or family members to assist.
Your application could be rejected for various reasons, such as a low credit score, high existing debt, insufficient income, or a history of late payments. Reviewing your credit report will help identify the specific reason.
Frequent credit card rejections can happen due to multiple applications within a short period, a poor credit score, or not meeting the eligibility criteria (such as income or age). It's important to check your credit profile and ensure you meet the necessary conditions.
If your application is rejected, it can cause a temporary dip in your credit score due to the hard inquiry. However, the rejection itself won’t directly impact your score, but it may indicate areas in your financial profile that need improvement.
