it’s your time and again Is your personal loan or credit card application being rejected? You should find out the reason behind this. If you don’t do this, you will still have problems but the request will not be accepted. We tell you the reasons why your application may be rejected. If you do it right, banks will easily give you a loan or credit card.
1. Bad credit score
When applying for a personal loan or credit card, banks first check your credit score. Most banks prefer to give personal loans or credit cards to people with a credit score above 750. A higher credit score means that the person has a good credit history and there is less risk in giving them a loan. While granting personal loans to people with low credit scores is considered riskier.
2. Apply for a loan several times
If you repeatedly apply for a personal loan or credit card in a short period of time, it will have a negative impact on your credit score. Whenever you apply for a loan or credit card, banks request your credit report from the credit bureau. Every time you receive a hard inquiry, your credit score drops a few points. These hard inquiries are also included in your credit report. Avoid making this mistake.
3. Payment estimate
Banks prefer to grant loans to those whose EMI represents only 50% to 55% of their income. Be sure to evaluate it before applying for any loan. If the EMI burden is more than 50%-55%, the loan application may be rejected.
4. Change jobs frequently
Where do you work, what is your work profile and how long have you been working? Banks pay attention to all these things when evaluating the loan application. Banks want to see how stable your employment history is. Therefore, avoid changing jobs frequently.
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