HDFC Bank is the largest private sector bank in India by assets and the largest bank in India by market capitalization. Building on its vast network and decades of banking experience, HDFC Bank has become the largest issuer of credit cards in India, has issued more than 1.5 crore credit cards. What makes HDFC Bank credit cards the most popular in India is the great system of rewards and benefits that it offers to its users.
Credit Cards allow you quick and easy access to credit when you need it. Think of a credit card as a quick loan – you can borrow instantly when you need it and repay in easy instalments later at your own convenience. This is why credit cards have become such an essential part of modern life and an increasingly large number of people are now applying for credit cards.
Since credit cards are so convenient, a large number of people apply for them. This means that lenders have a due vetting process in place to select the most eligible customers and reject others. The more reputed the lender, the more stringent their vetting process is likely to be. This means that sometimes, your HDFC credit card application may get rejected. Read on to find out the major reasons for HDFC credit card rejection.
This is the most common HDFC credit card rejection reason. CIBIL stands for Credit Information Bureau (India) Limited. It is an organization that keeps a record of the credit histories of all consumers. A CIBIL score is a 3-digit number between 500 to 900 with scores above 750 considered healthy. If you have a CIBIL score below 700, it can be the reason for your HDFC credit card rejection. CIBIL scores are affected by your past financial history. You may have a low CIBIL score if:
You have defaulted on a loan in the past.
You have applied for multiple loans simultaneously.
You have not been paying your EMIs on time.
You have applied for multiple credit cards.
Before banks issue credit cards, they need to assess the applicant's ability to pay the credit back. In case an applicant has low monthly or yearly income, they are more likely to be unable to pay their loan back. For this reason, most credit issuers have an eligibility criterion stating a minimum monthly or yearly income for an applicant to be eligible for credit card. Having an income lower than this threshold can be a reason for an applicant's HDFC credit card rejection.
Another reason for HDFC credit card rejection is the type of job an applicant has and how long has the applicant been working with their present employer. Credit card issuers prefer employees of established and known companies. They also prefer applicants who have had stable jobs. If an applicant’s employment history shows that he/she has been switching jobs frequently, it can be a reason for their HDFC credit card rejection even though they may be fulfilling the minimum income eligibility criteria.
An important metric banks consider while issuing credit cards is the debt-to-income ratio or your monthly debt divided by your monthly income. A high debt-to-income ratio is a common reason for HDFC credit card rejection. To arrive at this ratio, the lender only needs to have a quick look at your CIBIL score. If you have applied for multiple loans, or have multiple credit cards issued against your name, or are paying a very large portion of your monthly income as EMI for a loan, your debt-to-income ratio is likely to be high, resulting in HDFC credit card rejection.
Before a lender issues you a credit card, they need to verify your address. All communication with the lender including your monthly credit card bills will be delivered to this address. In case the lender is not able to verify your address, they will not be convinced of the credibility of your application. This can become a reason for your HDFC credit card rejection.
Finally, a common but often overlooked reason for HDFC credit card rejection is an incomplete or incorrectly filled application form. The application form captures your essential details that are necessary for précising your credit card application. Therefore it is necessary to be careful while filling it out. One must also be careful in providing copies of all the required KYC documents in order to ensure correct and quick processing of the application.
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First, you need to find the reason for your HDFC credit card rejection. To do this you may get in touch with the agent or representative who was handling your application and they may be able to provide you with the reason for your HDFC credit card rejection. Depending on the reason, you have a number of resources open to you. For instance, if your application was rejected on account of unstable income, you can apply for a secured credit card which is issued against a bank FD. If your application was rejected due to not having a credit history, you may apply for an unsecured loan, and pay it off on time to build a credit history.
A credit card application may be processed anywhere between 1-10 business days depending on your credit history and eligibility.