Banks should give clear reason for application denial

[Lobogris]

I only applied AmEx through agent, because I was not able to get it online. Some magic he did and got it approved.

Can you please share the contact for this agent?

 

[aayusharyan]

I applied as new to SBI after having around 15 cards and SBI Cashback was approved instantly online without any documents and a few months later I got SBI BPCL (only 20k limit though) even though I had applied for Octane.

Did you had any other relationship with SBI that time?

 

[Lobogris]

No.

Did you had any other relationship with SBI that time?

No. Nothing at all.

 

[aayusharyan]

Can you please share the contact for this agent?

Sorry bro, this was like 3 years ago, I don't have his contact details. 🙈

 

[panu24]

I applied as new to SBI after having around 15 cards and SBI Cashback was approved instantly online without any documents and a few months later I got SBI BPCL (only 20k limit though) even though I had applied for Octane.

I don't think its that simple SBI is checking. Along with maximum cards, if total credit limit is also huge (crossing your total ITR/turnover) then that rejection reason "overleveraged" is coming.

 

[Lobogris]

I don't think its that simple SBI is checking. Along with maximum cards, if total credit limit is also huge (crossing your total ITR/turnover) then that rejection reason "overleveraged" is coming.

I have never provided any ITR to any bank.

 

[panu24]

I have never provided any ITR to any bank.

Is income information updated in your cibil account? Or cibil hit also not happened for your application?

 

[Lobogris]

Is income information updated in your cibil account? Or cibil hit also not happened for your application?

No income is reported in CIBIL.

 

[xfactcc]

I only applied AmEx through agent, because I was not able to get it online. Some magic he did and got it approved.

Please share the agent's details if he is willing. Thank you.

 

[xfactcc]

That's a valid point of view, but how can we challenge that, has RBI mandated banks to make the serviceable PIN Codes publicly available?
I too think this reason was a faux reason because I have a SC branch in my city. How can they say it's unserviceable when they are servicing this area. But I can't push more than this I think. So, can't do anything about it. 🤷‍♂️

If your branch is within a certain radius and you are not receiving their card because of often abused 'pincode not serviceable' reason, you can just counter it based on that adding it doesn't appear rational and must be reviewed.

Often escalations and threat of approaching RBIBO will sort it out. Lower management often provide these supposedly hard-to-dispute reasons to skip hassle, while PNO or seniormanagement may not. Even if escalations do not work, do approach RBI BO, with the facts and reason you have. You don't always have to be a lawyer-like with foolproof case. If they are bluffing the mere complaint will straighten their behinds. Still, If they don't rule in your favour, you have no harm.
You will only lose some time and effort.

In my case, the FD-backed dreamdifferent card that came with kotak811 got issued, but when I tried to get one of their unsecured cards, they rejected it citing 'pincode not serviceable', makes no sense. At the time I didn't know about these escalation matrix and RBIBO. I had to give up that card to apply for the unsecured card, which got rejected and neither I ever got the chance for applying the secure card again as they show I already have a card with them even 1 year after closure. I think I will escalate and eventually shove the RBIBO in their rear this time.

 

[panu24]

No income is reported in CIBIL.

Then its clear case of NTB despite of holding many cards. But I am sure for existing SBI customers its not that easy getting SBI Cashback card approved while holding many credit cards.

 

[aayusharyan]

Then its clear case of NTB despite of holding many cards. But I am sure for existing SBI customers its not that easy getting SBI Cashback card approved while holding many credit cards.

Even I am NTB, still they are not giving me CC because of too many existing CCs.

 

[aayusharyan]

If your branch is within a certain radius and you are not receiving their card because of often abused 'pincode not serviceable' reason, you can just counter it based on that adding it doesn't appear rational and must be reviewed.

Often escalations and threat of approaching RBIBO will sort it out. Lower management often provide these supposedly hard-to-dispute reasons to skip hassle, while PNO or seniormanagement may not. Even if escalations do not work, do approach RBI BO, with the facts and reason you have. You don't always have to be a lawyer-like with foolproof case. If they are bluffing the mere complaint will straighten their behinds. Still, If they don't rule in your favour, you have no harm.
You will only lose some time and effort.

In my case, the FD-backed dreamdifferent card that came with kotak811 got issued, but when I tried to get one of their unsecured cards, they rejected it citing 'pincode not serviceable', makes no sense. At the time I didn't know about these escalation matrix and RBIBO. I had to give up that card to apply for the unsecured card, which got rejected and neither I ever got the chance for applying the secure card again as they show I already have a card with them even 1 year after closure. I think I will escalate and eventually shove the RBIBO in their rear this time.

Yes, that is a thing I am trying to push. However, I am thinking to just visit the branch first. That might be a simpler approach, and I can help some banker complete their target also.

 

[xfactcc]

Yes, that is a thing I am trying to push. However, I am thinking to just visit the branch first. That might be a simpler approach, and I can help some banker complete their target also.

Sure, that's always preferable.

 

[Kumar93196]

Ref RBI Circulars:
- https://www.rbi.org.in/commonperson/English/Scripts/Notification.aspx?Id=1574
- https://rbi.org.in/Scripts/NotificationUser.aspx?Id=3315&Mode=0

RBI says this.


Now, how we can use this for the benefits of consumers.
Basically, banks have the habit of giving a blanket reason of that the card application has been rejected because of Internal Policies of the bank. (I applied for Change of Address for an existing Credit Card and I received this response) But that reason can be considered as unclear and we can request for a more clear reason for rejection. Reasons like Age mismatch, Low Credit Score, too many cards issued recently, etc etc.

BUT NOT REJECTED BECAUSE INTERNAL POLICIES.

I am making this a habit now that for every rejection, I will not stay quiet. I will raise my voice. 1 hard credit enquiry has been made, I will fight for it. If Level 1 doesn't help, will raise to Level 2. (Contact emails can be found here - this thread)

I am sure we all would have faced situations where immediately after applying they give rejection. (Sometimes even before doing vKYC or even asking income documents). What reason they give? Internal Policies. 🤦🏻‍♂️ With citing this circular in the support emails, we have better chances of moving the balance needle towards us again.

But, there is a Catch
In theory, it can be said that Banks have advised to do this, not mandated. So, the banker can argue that they are not required by law to state the reason. (That's why they still keep doing that, because they are not penalised for that). In that case, I would say keep pushing, maybe this particular agent didn't wanted to help, maybe next agent will help. If nothing, then go for OB, when all the other approaches are exhausted. Also, to be noted, RBI has used the term main reason/reasons. Bank person can theoretically argue that Internal Policies is the main reason, but again. Take a day off, then reply again in hopes of some other agent who can be more helpful.

There is no harm in trying
With each of my email for rejection reason, I am also attaching some of the content for re-evaluation of my credit card application. Because end of the day, that's all that matters (I get the Card I applied for and spent my Enquiry on). (Reference details can be found here - this thread)

---
My experience:
- Rejected for SBI (applied through Sprint Portal) -> Sent Email -> this comment.
- Rejected for StanC (This also online application) -> Sent Email -> Waiting for response.
Please share your experiences also, I will keep indexing them here. Eventually, if we can prepare some sort of template for this for the benefits of consumers, it will be awesome. 😍

In these cases the best thing you can do is apply via agents. They got the exact decline reason.

In my opinion bank doesn't told the customer exact reason of rejection to save there(bank) time like if i applied for xyz bank card but my application got rejected and bank told me that reason of application decline is my DBR is high. So as mango man i don't know anything about DBR. So i mail them again or call them for asking the meaning of reason. And after getting the reason i will still argue that ABC bank issued the card for me but still XYZ is not issuing the card. And this thing goes on forever 🤣. And 10 out 6 persons don't care that much about the rejection reason they say if its rejected than let be we will be try another time.

 

[zoom.wale.bhaiya]

Well most of the bank reject cr card applications stating internal policy & don't want to reveal exact reason even after escalating to RBI ombudsman which is literally waste of time because these RBI Chipmunks end up giving same reason as the bank. However recently i came across certain people who have all the connection internally with back end credit Card dept who updates the rejection status with precise reason on banks database for internal banks reference. These guys have connections with Axis Bank, SBI, HDFC, ICICI & few other banks however they charge u certain amount to reveal the exact reason for loan or card rejection. My Axis card was always getting rejected even after having good CIBIL score with no payment defaults & i paid these guys around 500 & took a chance to check what's the reason for rejection & i got the answer for the same, hence I waited for 3 month's cooling period to finish off and re applied for Axis card and it got approved finally. So it worked for me & not sure if this works for everyone or not

 

[redcarpet]

Well most of the bank reject cr card applications stating internal policy & don't want to reveal exact reason even after escalating to RBI ombudsman which is literally waste of time because these RBI Chipmunks end up giving same reason as the bank. However recently i came across certain people who have all the connection internally with back end credit Card dept who updates the rejection status with precise reason on banks database for internal banks reference. These guys have connections with Axis Bank, SBI, HDFC, ICICI & few other banks however they charge u certain amount to reveal the exact reason for loan or card rejection. My Axis card was always getting rejected even after having good CIBIL score with no payment defaults & i paid these guys around 500 & took a chance to check what's the reason for rejection & i got the answer for the same, hence I waited for 3 month's cooling period to finish off and re applied for Axis card and it got approved finally. So it worked for me & not sure if this works for everyone or not

What was the reason...
500 sounds bit much


Also how did u even found these guys

 

[NishantK]

Well most of the bank reject cr card applications stating internal policy & don't want to reveal exact reason even after escalating to RBI ombudsman which is literally waste of time because these RBI Chipmunks end up giving same reason as the bank. However recently i came across certain people who have all the connection internally with back end credit Card dept who updates the rejection status with precise reason on banks database for internal banks reference. These guys have connections with Axis Bank, SBI, HDFC, ICICI & few other banks however they charge u certain amount to reveal the exact reason for loan or card rejection. My Axis card was always getting rejected even after having good CIBIL score with no payment defaults & i paid these guys around 500 & took a chance to check what's the reason for rejection & i got the answer for the same, hence I waited for 3 month's cooling period to finish off and re applied for Axis card and it got approved finally. So it worked for me & not sure if this works for everyone or not

Can u share details of these guys so that I can know the reason?

 

[xfactcc]

Well most of the bank reject cr card applications stating internal policy & don't want to reveal exact reason even after escalating to RBI ombudsman which is literally waste of time because these RBI Chipmunks end up giving same reason as the bank.

Not quite true, that's a generalisation.

 

[Raziel]

Even I am NTB, still they are not giving me CC because of too many existing CCs.

My SBI cashback card approved instantly(1.67 Lacs limit) without income proof or docs in December end last year, at that time I was holding 8 bank's CCs (12 in total like Axis 3, ICICI 3). No prior relationship with SBI.