I had applied for a credit card two months back. I submitted all the necessary papers. The bank executive assured me that I would be getting the card soon as I fulfilled the necessary criteria. However, a few days back my application was rejected. Is the bank within its rights to do so?A credit card is like a non-secured loan. Therefore, the amount of risk associated while giving a card is higher for the bank compared to giving a secured loan like a home loan. Banks take many factors into account while evaluating an individual’s creditworthiness through the credit card application that you fill. Some of these factors include your income and job stability. Another major determinant is your residential address. Most banks have a list of negative areas. If you happen to live in any of these areas, your application may not be approved even if you qualify on other factors.
Recently, credit scores were introduced in India in which a person’s credit history is reflected in numbers. Banks and financial institutions have already started using these scores. They use this score as a major input while deciding your creditworthiness before extending any fresh line of credit, including a credit card.
Therefore, the bank is within its rights to reject your application.!!
