Reason 1: Previously declined application
The fact is, bank are trying to save themselves time and effort which is why applicants who have been declined once are rejected once again. Ideally, applicants are not advised to apply for cards within a span of two weeks after being declined for a different application. However, it is best to wait a lot longer than that. Some card companies apply a 3 months cooling off period for declined credit card applications.
Reason 2: Inaccurate information
Banks do extensive background checks before they grant cards to all applicants. They asses each applicants' financial history methodically and providing inaccurate personal details may send the wrong message. In such cases, applicants will be perceived as untrustworthy individuals. This will inevitably lead to declined applications.
Reason 3: Self-employed
While there is nothing wrong with being self-employed, banks categorize such individuals as unsecured or high-risk candidates. Most banks are only willing to grant credit to self-employed individuals if they have been employed for a certain length of time.
Reason 4: Lack of documents presented
The firs things that banks look for in applicants are their financial history and personal information. This will determine an applicant's credit-worthiness. However, there are times when banks will require documented proof such as bank statements, etc. unfortunately many applicants seem to forget about this requirement and at any time, this leads to declined credit card applications.
Reason 5: Past disputes with banks
Poor bank relationship may affect an applicant's application. Past disputes may result in declined credit card application.