In today’s financial setup, premium credit cards like the SBI Credit Cards offer a host of benefits and advantages to the user. It is quite simple to apply for this credit card online but, unfortunately, there are chances that your credit card application can get rejected. This could possibly be because the State Bank of India considers a number of variables before considering your application for approval and granting you credit card. Let's understand the various parameters and why one could face a rejection situation.
If you have or want to apply for SBI Credit Card, but are wondering what are the reasons for its refusal, the following are the reasons one must keep in mind:
Like every other bank, SBI also has its own internal eligibility criteria that every applicant needs to fulfill like the age, salary, place of work, country of residence, overall experience, etc. If an applicant does not fulfill the above-mentioned criterion for any reason, their credit card application will get rejected
A low credit score is a primary reason for an SBI credit card rejection hence it is always advisable to check your score online before applying for a credit card. A credit score may be low if you frequently go beyond your credit limit, if there are too many credit inquiries, or if you do not clear your bills on time.
Another SBI card rejection reason is late payment or discrepancies on the credit card report that has a complete record of all the cards utilized by the applicant. Reports that have words like ‘settled’ or ‘written off’ on their report indicate that the applicant has possibly defaulted or missed their payments multiple times. Additionally, if there are any inconsistencies like name or date of birth could become a reason for SBI card rejection
Changing jobs too frequently like every 6 months or a year could be a reason for rejection as it indicates that the applicant is not very dependable. In such cases, SBI bank can reject your credit card application
Numerous lenders provide credit cards with higher credit limits to qualified customers. However, it is crucial that you are able to repay the loan and that your income proves to be adequate. For that, one must meet the bank’s income eligibility criteria or the application can be rejected.
Having multiple credit cards is also considered a red flag while approving your credit card application. If the bank feels you have too many cards that may be difficult to manage, your credit card application can get rejected
This may seem like a minor issue but errors on the form are also another reason for SBI credit card rejection. Missing out on important information, providing incorrect data, or misspelling your details can be a cause for concern and lead to credit card applications being rejected.
In the event of a refusal from the SBI credit card department, the first step would be to rectify the error. For example, if there is an error in the application, the applicant can correct it or if the credit score is low, the applicant can work towards improving the score before reapplying for the SBI credit card
One of the reasons for SBI credit card rejection is insufficient salary as it implies that the applicant may not be able to clear their dues on time.
Yes, SBI credit card refusal can deeply affect the credit rating of the applicant. Hence, it is always advisable to keep a check on your score and make sure you satisfy the eligibility criteria before applying for an SBI credit card.