I was able to meet the minimum earnings requirement of a particular credit card company.  Why is my application for a credit card still rejected?

This question is one of the most common problems encountered by credit card applicants.  Meeting the minimum earnings requirement is one thing, but there is more to it to get approval from a credit card company.  When I talked to my friends in Bank of the Philippine Islands (BPI) and Banco de Oro (BDO), they told me that banks evaluate credit card applicants using three criteria:

  1. capacity to pay;
  2. personal information;
  3. authenticity of residence.

Capacity to pay is verified through submitted income tax return (ITR) or pay slip, preferably with the recognized logo or company name.  In this case the bank will be able to determine how much a particular applicant really earns.  The bank also verifies if an applicant is really working for a particular company.

Personal information is verified with the Credit Information Bureau Inc. (CIBI).  Through the CIBI, credit card companies will be able to check the credit history of a particular applicant.  If an applicant has a good credit standing, he will most likely get the nod on his application.

Residence of an applicant is checked by credit investigators (CI).  It is very important to have an accurate address in your application together with the number of years that you have stayed in your current address.  Verifying the address is the bank’s way of ensuring that your credit card statement of account will be delivered to you on time.

Herewith are some points you should do or avoid to ensure that your credit card application will be approved:

  • Ensure that you really stay in the residence address you have written down in your application form.  Make sure also that your neighbour knows you.
  • Make sure that everyone in your office recognized you so that when a CI visits your office anyone can attest that you are working there.
  • Your income should significantly be above the minimum requirement.  Meeting the minimum requirement cannot guarantee approval especially for first time applicants.  By personally talking to the bank, some agree to automatic fund transfer or maintain a savings account with a minimum average deposit balance (ADB) to ensure that you will be able to cover the expenses that will be incurred using your credit card.
  • Make sure that you do not have a common name.  If the bank finds that you have a namesake, they will require you to submit other pertinent legal documents like affidavit of denial.
  • If you are a supplementary cardholder, ensure that the main cardholder is paying their dues on time.  Your credit history will be affected by the main cardholder.
  • Indicate in your application any credit card you already have in another bank with good credit standing.
  • Furnished an endorsement letter from a bank officer you personally know and attach it to your application.

Convenience and flexibility in paying is one advantage of having a credit card.  But a card holder must ensure that the responsibility attached to having a credit card must be taken cared of religiously like paying on time to avoid penalties and to maintain a good credit history that may be beneficial in the future.  One tip in good credit card handling – buy only those that are within your budget.

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  1. 1
    Debbie Sue Ligligen // April 14th, 2010 at 5:31 pm

    I applied for a BDO credit card last week of March, how will i know if its approved or not…thank you.

  2. 2
    urot // April 14th, 2010 at 10:56 pm

    have you been interviewed over the phone by a BDO credit personnel? if you have undergone this step, then you should receive your credit card through express delivery by the end of the month or first wk of May.

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