Loans in the 21st century play a big role in business development, investment, which in the future will bring more income. But what to do when you need a credit card, but the bank refuses to give it (but you know that your credit history is good)?
Let’s talk about what signals tell the bank not to give you a credit card in this article.
A credit card application has provided untruthful information
Let’s assume that you have provided the bank with a certificate that you work at a large company, but in reality, you are just taking casual part-time jobs. Be prepared for the fact that the loan will not be given to you. Of course, if the bank will find out about the deception. But the probability is high enough because banks often conduct a thorough screening of the candidate for a loan, including – calling your employer and your contacts.
So if you urgently need a credit card – think again.
Of course, you can simply take the false documents to another bank in the hope that its employees will be kind to you. But rejecting a credit card is the least unpleasant thing you can expect. Suppose you manage to cheat the bank. Agree that paying back a loan with an unstable job or small income will not be easy for you. In addition, many banks have high-interest rates on the loan (based on the list of banks on the website MYFIN).
In this case, the credit card is very likely not to be issued, because the fact of cheating has been proven.
What to do if this has already happened?
If you work unofficially, or your official income is not enough to pay the loan, it is better to look for a guarantor or to provide the bank with collateral. In addition, you can try to show the bank your unofficial income. As their proof, banks can accept:
- Documents on the purchase of movable and immovable property, other major expenses, and regular major expenditures;
- Statements from other banks about the existence of a deposit or current account and the amounts in them;
- Good credit history, large loans paid off on time.
Applicant’s overdraft history
If the applicant for a credit card is already paying back one or more loans, he may be rejected. That won’t happen if the amount of payments on all loans is small. But if your loan payments exceed half of your income, the bank will most likely refrain from working with you.
Of course, you can try to conceal the existence of other loans from the bank. Most likely the bank will notice it. This is because most financial institutions cooperate with credit bureaus.
What to do?
Here a person who wants to get a credit card with no credit history does not have many options for a quick fix. You need to pay off the old loans, temporarily giving up the new ones. Think: what is wrong with your finances, why do you have to borrow so much from banks? Another solution is to increase your income. True, this can also take more than one week or month.
If you need a loan (not a credit card) right away, try having it applied to someone in your family. If, of course, they will agree, and if they fit the “portrait” of a potential borrower of the bank.
If you get enough income to repay the credit limit, but not officially, then think about how to show the bank additional sources of income, or look for a guarantor.
Also, subjective factors influence positive or negative decisions. Such factors may include:
The presence of a payroll card of the bank in which the client applies for a credit card;
A positive credit history;
- property ownership;
- marital status;
- position held;
- an active work record.
Borrowers who pay back their loans faithfully believe that their credit history is perfect. But sometimes banks don’t give information to credit bureaus in time, or make mistakes. This negatively affects the client’s reputation and prevents him from getting a credit card.
Experts recommend that you check your credit history annually. Every person has the right to request his or her file from the credit history bureau once a year free of charge. If unreliable data is found in it, it can be disputed.
Very often you hear that a credit card can be issued for any purpose. This statement is not quite true. If you indicate that the borrowed funds will be spent on business development or closing a loan from another bank – your application will be denied.
The fact is that there are separate services available for these purposes, such as business loans or refinancing.
The way you dress is how you greet the sun
In some banks, when filling out a loan application, a specialist has to give his or her assessment of the person. The bank officer’s opinion may be influenced by:
The appearance of the potential borrower. It is evaluated whether the person is dressed for the weather, whether the clothes fit, general grooming, and whether there are any criminal tattoos.
Behavior. Suspicion may be aroused by a highly nervous client, avoiding eye contact. Alcohol or drug intoxication is a definite reason to reject an application.
Confidence in answering questions. It often happens that the manager asks about things that are already clear from the submitted documents. At the same time, he analyzes how quickly and accurately the person answers.
If the client has some objects, which can be regarded as evidence of his/her ability to pay. For example jewelry, car keys.
We should not forget that all banks use different criteria for evaluating a client and different approaches to making decisions. There is no single formula, which will enable you to get a credit card at any bank. Following the above rules and principles will make you most likely to apply for a credit card.