Why are some people with five or six credit cards still able to apply for new cards from other banks, while others only have one or two credit cards but are repeatedly rejected? Recently, a reader reported that he was rejected when applying for a bank credit card, which may be related to his previous intensive application for consumer financial products such as Huabei, Weilidai, and JD Baitiao. According to industry insiders, in addition to common reasons such as previous overdue records, there are many details that people usually overlook but financial institutions attach great importance to. This issue will reveal to you N reasons why your credit card application is rejected.
Huabei and Baitiao "accidentally damaged" credit
There is a saying in the industry that each person can only apply for a maximum of 8 credit cards, and the ninth one will not be successfully approved. This saying and cannot withstand scrutiny. It is understood that someone has applied for nearly 200 credit cards in total. Although many of them have been canceled, more than 10 are still in hand.
However, some people who only have one or two credit cards have their applications for new cards rejected by their banks. Recently, an enthusiastic reader told a Beijing Business Daily reporter that he was rejected when applying for a credit card from a joint-stock bank, but his job has been stable, and his two credit cards from other banks have never been overdue, and he will repay in advance even if he is on a business trip. However, the netizen also revealed that for the convenience of online shopping, he has recently opened Ant Huabei and JD Baitiao.
Dong Zheng, editor-in-chief of IAika, said that for consumer financial products such as Ant Huabei and JD Baitiao, as long as the credit is reported, it will be like a bank credit card, with intensive applications or too many applications within a period of time. , may be regarded as long-term lending risks by banks. "For example, a person has a total limit of 400,000 yuan in credit cards and consumer financial products. He usually uses no more than 50,000 yuan. However, the bank cannot see daily consumption from the credit reporting system. It can only see that you already have 400,000 yuan. With a limit of 10,000 yuan, banks will worry that any increase in the limit will exceed the repayment capacity of the cardholder. This also indirectly explains why there is a saying in the industry that the ninth card will not be approved.
Frequent inquiries on personal credit information
If a person inquires about personal credit information intensively over a period of time, it may also cause the bank to have the feeling that "this person is very short of money", thus causing some problems. alert.
How are such personal credit inquiry records generated? One situation is applying for microfinance instruments such as credit cards too frequently. One netizen said that during a certain period of time, when she had a lot of free time, she applied for more than a dozen bank credit cards at once. She felt that it was not costly and she just filled out a few application forms. However, after a while, she went to apply for a very expensive credit card. Important loans were rejected instantly.
It was learned that her personal credit report had been queried 12 times in one month, from various credit card issuing banks. Industry insiders said that if the credit report is queried multiple times, the bank will think that the applicant is in urgent need of funds and the potential default risk is high.
According to a person in the banking industry, there is another situation where some cardholders use their credit cards for others, or are given loans. Since the monthly repayment date is fixed, The funds are not used by oneself, and the understanding of the contract is not deep enough. I am always worried about overdue payment, so I will frequently inquire when the repayment date is approaching.
The person said that the central bank now stipulates that bank counters can check personal credit records twice a year for free, and will charge 25 yuan each time starting from the third time. You can also check on the Internet for free, but it is relatively troublesome and has delays. Both leave records. Records of inquiries at the counters of commercial banks are listed in the report in detailed form, including time, subject, and operator. For Internet inquiries, the number of inquiries this year is marked at the end of the report.
The contact information is not my real name
In the process of bank credit card approval, after checking basic factors such as whether there are overdue records in the past, personal work and income level, there is another step that is very important. , which is to check the information with the applicant over the phone. However, many problems will also arise in this link.
Recently, a citizen reported that when he applied for a credit card from a joint-stock bank, after filling in his personal information online, he was directly rejected because his mobile phone number was not a real-name one.
The reporter learned that although new mobile phone numbers in recent years have all been registered with real names, a batch of old accounts from previous years still have not been fully registered with real names, and there are not many cases where family members exchange numbers.
In addition, according to industry insiders, during the information verification process, there have been cases where the contact person did not know or was unwilling to be a contact person, the applicant's relatives who had registered residence in another place could not be contacted, and the approved card type and limit were not met. The applicant's request and then the applicant's refusal to accept it, the applicant's place of work and residence are not in the bank's branch city, the applicant does not meet the requirements for collective card application, etc. These may be the reasons why the bank refuses to approve the card.
Interpretation
Bank monitoring is tightening
Customer service staff at many banks’ credit card centers told Beijing Business Daily reporters that whether a bank approves a credit card mainly depends on The applicant's credit status, repayment ability, personal assets, etc. will be comprehensively considered, and the number of cards issued by the bank in the year, remaining credit limit, credit balance payable, credit card non-performing rate, etc. will also be considered.
While the scale of bank card credit has continued to grow in recent years, the non-performing rate has also increased. According to data released by the central bank, as of the end of 2016, the total amount of bank card credit was 9.14 trillion yuan, a year-on-year increase of 29.06; the balance of bank card credit repayable was 4.06 trillion yuan, a year-on-year increase of 23.63; the average bank card credit limit was 19,600 yuan. , the credit utilization rate was 44.45; the total outstanding credit card credit overdue for six months was 53.568 billion yuan, accounting for 1.4% of the credit card balance payable, an increase of 0.17 percentage points from the end of the previous year.
Because it is difficult to control the flow of credit card funds, some regulators have once again proposed this year that banks should further strictly check the purpose and use of loans, especially for housing-related transactions that are strictly controlled this year, and be wary of borrowing money. A person may pay for a mortgage down payment by cashing out on multiple credit cards. In mid-October, a joint-stock bank issued an announcement stating that it would carry out risk management and control for real estate-related transactions with its credit card. When conducting transactions with domestic real estate merchants, the RMB transaction amount in a single month cannot exceed 30,000 yuan, and the cumulative amount for the whole year cannot exceed 10,000 yuan. Ten thousand yuan, and real estate transactions are not allowed overseas. Industry insiders believe that with the upgrade of regulatory policies, the control of credit card real estate transactions will become increasingly strict.