Discover the common reasons for SBI Credit Card application rejections and how to improve chances of approval.
SBI credit cards are widely sought after in India for their extensive benefits and diverse range. Despite the ease of application, many applicants encounter rejection, leaving them puzzled and disappointed. Let’s explore why your SBI credit card application might be declined, the eligibility criteria, the impact of rejection on your credit profile, and answer the most common questions Indian applicants face about SBI credit card application rejections.
Understanding why your SBI credit card application was rejected is the first step to building a successful application in the future. Here are the principal reasons for the rejections on your SBI credit card application:
Low Credit Score: The most common issue is a low CIBIL score. SBI usually expects a score of 750 or above. If you have missed payments, have high credit utilisation, or several recent credit inquiries, your score may drop below the desired level, leading to your application being declined or rejected.
Eligibility Criteria Not Met: SBI has strict eligibility norms regarding age, income, residency, and type of employment. If you fail to meet any of these, such as the minimum salary requirement, job stability, or working in an approved organisation, your application may not progress.
Errors or Discrepancies in Application Form: Typos, incomplete information, or mismatched details like the date of birth or address between your documents and the application can prompt rejection.
Frequent Job Changes: If your work history shows job changes every 6 to 12 months, SBI may perceive you as financially unstable and could reject your credit card application.
Existing Debt and Credit Profile: SBI might deny your application if you already have too many credit cards or loans or if there’s a history of loan settlements, defaults, or “written off” remarks in your credit report.
Internal Policies and Business Decisions: Sometimes, even with a high CIBIL score and a stable profile, SBI can reject applications for undisclosed internal policy reasons. These may include risk avoidance in certain regions or customer profiles.
SBI’s criteria for approving or rejecting a credit card application are both explicit and internal. Here’s what you should know:
Minimum Age and Residency: Applicants must usually be at least 21 years old and residents of India. Place of residence and stability at your current address can also be assessed.
Income: A minimum annual income threshold applies, generally ₹2 lakh or more for most cards. The required income can vary by card type.
CIBIL Score: A score of 750 or above is desirable. Applicants with a lower score face a higher rejection risk, unless applying for a card backed by a fixed deposit, where the income requirement is sometimes relaxed.
Type of Employment: SBI prefers applicants working in reputed, established companies, and those showing long-term job stability.
Number of Existing Credit Facilities: Having several credit cards or loans can indicate overleveraging or higher financial risk, which banks may frown upon.
Clean Payment History: Late payments, defaults, and “settled” or “written off” accounts in your credit report are warning signals that often prompt SBI to reject your application.
Application Accuracy: Providing accurate, matching details on all documents is vital. Discrepancies can lead to instant rejection.
A credit card rejection does not directly drop your CIBIL score. However, frequent applications and rejections can have a negative effect in these ways:
Hard Inquiries: Every time you apply for a credit card, SBI conducts a ‘hard inquiry’ on your report. Multiple hard inquiries in a short time suggest ‘credit hungry’ behaviour, which can push your score down.
Perceived Financial Instability: The more rejections, the less confident future lenders may be when reviewing your applications.
Long-term Impact: If you habitually apply without reviewing your eligibility, your score may gradually worsen, which could impact your ability to get loans or credit cards in the future.
It’s recommended to wait before reapplying and improve your financial profile to boost the chances of approval. The SBI credit card application process is straightforward if you meet their criteria and maintain a solid financial track record. Always address the sbi credit card rejection reasons flagged in your last application. Remember that rectifying and rebuilding your profile before reapplying is key to ensuring approval. If you want to avoid future sbi credit card rejection, take these criteria and use-cases seriously and ensure complete, accurate details are provided every single time.
SBI credit card applications can be rejected for several reasons, such as a low credit score, failing eligibility criteria, frequent job switches, errors in the application, or internal policy reasons. Always check the rejection letter and rectify any issues before reapplying.
SBI credit cards are accessible if you meet the required criteria, including age, income, a stable job, and a good CIBIL score (preferably 750 or above). However, strict internal checks make the approval process competitive for applicants with weaker profiles.
The minimum CIBIL score for most SBI credit cards is 750. In some cases, SBI may consider applicants with scores between 700 and 750 if other eligibility conditions are excellent, but scores below 700 usually prompt rejection.
A single rejection won’t significantly impact your credit score. However, repeated rejections due to multiple frequent applications can gradually bring your score down, as each application triggers a hard inquiry, which is reported in your credit history.
Yes, you can reapply after addressing the reasons for rejection. Check your credit score, rectify errors, and meet the specific eligibility criteria before reapplying to improve your approval chances.