Reasons why a bank might reject your credit card application
Though banks often chase individuals to sell credit cards, there are some strict eligibility criteria for issuing these cards. From income levels to age, det-to-income ratio to frequent job switches, banks consider a lot of things to assess an application.
Kolkata: Credit cards is becoming popular very fast. The total number of credit cards has exceeded 11 crore in the last financial year. According to reports, in the month of May 2025 more than 7.6 lakh credit cards were issued in this country. Though this number is impressive, banks regularly reject a number of applications for issuing a credit card. Why do banks do it? After all, they earn hefty interest from credit cards. Let's have a look at the reasons that deter a bank from issuing a credit card to an applicant.
Too many applications or loans
Strange as it might sound, if you make too many applications for loans or credit cards within a short time window, it goes against you and your application is likely to be declined. Every time you make an application, the bank makes an enquiry of your credit profile and a hard enquiry impacts the credit score. Since the credit score is of central importance, it reduces your chances of getting a credit card, or even a loan. Personal finance advisors recommend that if one makes an application for a credit card, one should wait for the bank to take their decision before making another application to another bank.
Debt: Income ratio
The debt to income is an extremely significant measure of the amount of money from your income that is available after servicing your debt. The term "Debt" here means instalments of any loan and/or credit card repayments. Banks usually consider up to 35% of the income to be consumed by debt servicing favourably, if other conditions are conducive. Anything near or above 50% is a strict no-no for a bank. The reason: with so much of the monthly income consumed by debt servicing, the applicant will find it unsustainable to handle any additional debt burden.
Income criteria important
All credit cards have some income eligibility criteria that must be fulfilled by any applicant. This is applicable to both salaried and self-employed applicants. There are cards for different income brackets and these are non-negotiable. A bank has several credit cards for different income categories and banks are strict in adhering to the guidelines since they all have different credit limits and have repayment implications.
Credit cards are issued in India to individuals between 18 and 60 years of age. in The main reason: banks assess an applicant's ability to repay the debts raised through credit cards that is often related to their earning capacity which is usually between these two age limits.
Frequent change of jobs
Changing jobs too frequently can be a viewed as an unstable approach towards one's profession. All issuers of credit cards and givers of loans want individuals who are stable in their jobs and have steady income stream. Instability in jobs can result in income instability which is loathed by lenders.