What to do when Credit Card Application is Rejected ?

Credit Card Application RejectedIt is not uncommon for us as consumers to get tempted to BUY the Latest SmartPhone using Credit Card. However, many of you all don’t know the importance of Credit History and thus end up in the soup. A Reader of our Advisory is in a similar situation and narrates his experience with SBI Credit Cards department seeking help,

I have been informed by the SBI Credit Cards department that credit card application was rejected for not meeting the CIBIL Score which is totally baseless. I was sent a letter stating the same which not only caused mental agony as it has questioned my integrity and credibility but also embarrassed me in-front of my colleagues. Because of this reason I had to apply for my CIBIL score which did cost me Rs.470/- and also the mental harassment which was totally unwarranted for. After having replied to them over an email, I was sent a reply that the reason for rejection was an internal business decision and not the CIBIL Score. This clearly states that the services of the cards department is not at all transparent to the customer. Can you guide me on what are my rights as consumer under the Indian Banking Laws ?

1. Any form of Credit [Cards, Home Loans, Car Loans, except Educational Loan] Approval by Banks is at its own discretion and is usually done following the Internal Procedure Laid down by the Credit Disbursal Department. You cannot challenge the Bank or in the Court of Law.

2. The Bank may or may not base its decision only solely on CIBIL Score but they look at your ability to repay the Loan. If there is a disparity between your Annual Income Vs the Credit Applied [Include Outstanding] then the Bank may not approve your Loan / Credit Card Application.

3. Instead of wasting Rs 470, you could have demanded the Credit Report and Score from the Bank by paying just Rs 50 + Taxes as the Bank is under the Obligation to Give the same

4. If you are trying to Build CIBIL / Experian Credit History, we’d strongly suggest that you opt for a Secured Credit Card from SBI or any other bank which offers the same.

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