Why Credit Card Applications Get Rejected: Understanding Internal Bank Policies

Applying for a credit card is a common financial step for millions of Indians. However, not all applications get approved. While rejection can be frustrating, it’s essential to understand the underlying reasons, especially those related to internal bank policies. This article explores why credit card applications get declined, the factors influencing approval decisions, and how alternatives like the SBM MobiKwik First Card can make credit access easier for all.

Common Reasons Why Credit Card Applications Get Rejected

1. Low or No Credit Score

One of the primary reasons for rejection is a low CIBIL score or lack of credit history. Banks rely heavily on your credit score to evaluate how trustworthy you are with borrowed money. If you have no prior loan or credit card experience, your application might be considered risky.

2. Unstable Income or Employment

Banks usually prefer applicants with a steady income and long-term employment. Frequent job changes, irregular income, or working in industries deemed high-risk can lead to application rejection.

3. Existing Loan Burden

If your income is already tied up in multiple EMIs, your creditworthiness takes a hit. High debt-to-income ratios make banks hesitant to issue more credit.

4. Errors in Application Form

Incorrect details, mismatched PAN or Aadhaar numbers, or incomplete documentation can lead to instant rejection. Double-check your application before submitting it.

5. Internal Risk Policies of Banks

Not all rejections are due to your profile. Banks have internal policies based on their risk appetite, geographic coverage, or target customer base. Even if you meet all standard criteria, you might still be declined because you don’t fit a bank’s “ideal customer” profile.

Internal Bank Policies Explained

Banks and NBFCs follow internal scoring models that go beyond the credit score. These policies are confidential and vary across institutions. They may consider factors like:

• Spending behaviour from existing accounts
  
• Recent applications to other credit products
  
• Geolocation and fraud risk data
  
• Industry of employment and employer category
  

So even if your CIBIL score is healthy, internal metrics might lead to a rejection.

Get Credit Made Simple with MobiKwik

If you’ve been turned down for a credit card before, MobiKwik offers a smarter way to build your credit profile. Through the MobiKwik app, users can easily apply for credit products with minimal paperwork and maximum convenience.

Introducing SBM MobiKwik First Card – Credit Card Backed by Fixed Deposit

The SBM MobiKwik First Card is a game-changer for those who struggle to get traditional credit cards. Here’s why:

1. No Joining or Annual Fees

This card comes with zero hidden costs. You don’t need to worry about paying fees just to keep your credit card active.

2. Backed by a Fixed Deposit with 6.25% Annual Returns

This isn’t just a credit card; it’s also a savings tool. The card is issued against a Fixed Deposit, which earns a handsome 6.25% annual interest. You enjoy dual benefits: spend now and save for later.

3. No Credit Check Required

Even if you have a low CIBIL score or no credit history, you’re eligible. No credit assessment is done, making this ideal for first-time users or those looking to rebuild their credit score.

4. Boost Your Credit Score

Using the card responsibly can increase your credit score by up to 50 points. It’s a solid step toward long-term financial health.

5. Up to 51 Days Interest-Free Credit

Enjoy extended interest-free periods, giving you time to plan repayments while your FD continues to earn returns.

6. 100% Digital – No New Bank Account Needed

From setup to usage, everything is digital. You don’t need to visit a bank or open a new account. The entire process is managed within the MobiKwik app.

7. UPI-Enabled Credit Card

This card works like UPI. You can scan any UPI QR code and pay directly using your credit card – a first-of-its-kind feature offering unmatched convenience.

Pay Your Credit Card Bills via MobiKwik App – Earn Unlimited Cashback

With the MobiKwik App, you can pay your credit card bills in seconds and earn unlimited cashback. Key benefits include:

• Instant settlement
  
• Seamless payment experience
  
• Cashback offers on select cards and payment modes
  
• Detailed tracking of past transactions
  

Whether you are using your MobiKwik First Card or any other credit card, managing your dues has never been easier.

Frequently Asked Questions (FAQs)

Q1. Why was my credit card application rejected despite a good CIBIL score?

Internal policies of banks may consider other factors like job stability, location, and recent inquiries.

Q2. Can I get the SBM MobiKwik First Card without income proof?

Yes. It is backed by a fixed deposit, and no income documents or credit checks are required.

Q3. Will using this card help improve my credit score?

Absolutely. Responsible usage and timely repayments can boost your score by up to 50 points.

Q4. How do I apply for the MobiKwik First Card?

Just open the MobiKwik App, navigate to the “Credit” section, and follow the simple steps.

Q5. Can I pay my other credit card bills through MobiKwik?

Yes. MobiKwik supports payments for almost all major credit cards in India with the added benefit of cashback.

Credit Card Rejected? Here’s Your Solution!

Many credit card applications are rejected not because of your credit score alone, but due to internal bank policies, income instability, existing debts, or even simple application errors. But don’t worry — getting access to credit is now easier than ever with MobiKwik.

Introducing the SBM MobiKwik First Card – a revolutionary credit card backed by a Fixed Deposit (FD).
✔ No Joining or Annual Fees
✔ Earn 6.25% Interest on FD
✔ No Credit Score or Income Proof Required
✔ Boost Your CIBIL by up to 50 Points
✔ UPI-Enabled Credit Card – Scan & Pay Anywhere
✔ Up to 51 Days of Interest-Free Credit
✔ 100% Digital Onboarding – No New Bank Account Needed

You can also pay your credit card bills via the MobiKwik App and enjoy:
✔ Instant Settlements
✔ Unlimited Cashback Offers
✔ Easy Tracking of Payments

Why wait? Build your credit journey the smart way.

Download the MobiKwik App Now and apply for your SBM MobiKwik First Card in minutes!