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Credit Card Application Denied? What to Do Next in Dubai

Credit Card Application Denied? What to Do Next in Dubai

Credit card applications are often met with enthusiasm because of the independence and convenience they promise. Credit cards have become an indispensable financial instrument for locals and visitors alike in Dubai, a city recognized for its cutting-edge architecture and exciting culture. 

A credit card application denial can be discouraging, but not all credit card applications are approved. This article will explain what to do if your application for a credit card in Dubai is denied, as well as discuss the most prevalent causes for such rejections.

Recognising Credit Card Application Rejection Causes

Understanding the various causes of your credit card application denial is essential before moving forward with any further action. The following are some of the most often cited causes of rejection:

  • You may not have enough of credit history if you are new to Dubai or have only recently begun using credit. Without a credit history, lenders may be hesitant to approve your application because they like to evaluate candidates based on their creditworthiness.
  • Your credit score is a major factor in establishing your creditworthiness. Lenders will be wary to work with you if your credit score is low since it may signal that you have a history of poor credit management, late payments, or defaults.
  • Existing debts, such as loans or outstanding credit card balances, that are disproportionately large in relation to your income may cause lenders to have doubts about your capacity to responsibly handle more borrowing.
  • Lenders in Dubai want applicants to have a steady income and employment history so that they can be sure the borrower will be able to repay the loan. An application may be flagged if the applicant has a history of frequent work changes or has income fluctuations.
  • You may have been rejected because of Incomplete or Inaccurate Information on Your Application. Make sure anything you’ve written is true and up to date.

Formal Request for the Denial’s Justification

It’s important to move quickly after learning that your credit card application was denied. Most Dubai financial institutions will explain their decision to reject your application. Get in touch with the financial institution and ask for an explanation as to why your application was denied. If you know what’s going on, you can fix the problems more effectively.

Examine your credit report

Your credit card application was turned down because of problems with your credit history or score, you should get a copy of your credit report. Credit agencies like Al Etihad Credit Bureau exist in the United Arab Emirates to store and distribute consumers’ credit information. Check your credit report for any errors, omissions, or unpaid balances that could be lowering your score. Fixing mistakes and paying off debts listed with credit bureaus are two ways to raise your score.

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Make an effort to improve your credit

If you have a short credit history or a poor credit score, you should work on increasing both. Applying for a secured credit card is a good first step. A cash deposit serves as security for a secured credit card, lowering the lender’s risk. Using a secured credit card responsibly on a regular basis can help you build credit. If you make your payments on time and don’t use too much of your available credit, your credit score will rise, making you a more competitive application for a standard credit card.

Get your debt-to-income ratio down

If your credit card application was turned down due to your high debt-to-income ratio, lowering your overall debt is crucial. Make a spending plan and make paying off debts a top priority. To save money on interest and make managing your debt easier, you may want to look into consolidating your loans or credit card balances. You can increase your future credit card acceptance odds by steadily reducing your debt as this will improve your debt-to-income ratio.

Having a secure job and reliable income

Lenders in Dubai favour applicants who can demonstrate financial stability by maintaining continuous work and an income stream. If your application was turned down because of worries about your employment or income, you should work to improve those situations. Credit card and loan applications submitted during a job search may raise red flags with lenders.

Apply to a New Financial Institution

You can reapply for a credit card after making the appropriate changes to your credit profile. However, it’s important to exercise caution when applying for many credit cards at once, as doing so might have a detrimental effect on your credit score. If you’ve been working hard to improve your financial situation, it makes sense to work with a lender that has a track record of accepting borrowers with similar credit histories.

Summary 

Credit card application denials are frustrating, but you should look at them as a chance to get your financial house in order. You can improve your future credit card application success rate by investigating the denial’s root causes and taking corrective action if necessary. Successfully applying for a credit card in Dubai requires the applicant to have a solid credit history, keep a manageable debt-to-income ratio, and display competent money management. If you want to be financially stable and have access to credit, remember that it takes time and effort to get there.

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