Decline Reason - High debt repayments than monthly income. What does it mean?

[praveensudhakaran]

My application was rejected by SBI CARDS by saying door locked at the time of verification(Haven't received any calls, nobody reached on that day as per my CCTV footage). Later rejected multiple times, with the reason Due to internal policy. Recently I got to know from an executive that it is because my debt is higher than my income. My entire debt is 2X of my CTC. My emi is 40% of my take home.

Then what does that mean?

 

[Zacobite]

My application was rejected by SBI CARDS by saying door locked at the time of verification(Haven't received any calls, nobody reached on that day as per my CCTV footage). Later rejected multiple times, with the reason Due to internal policy. Recently I got to know from an executive that it is because my debt is higher than my income. My entire debt is 2X of my CTC. My emi is 40% of my take home.

Then what does that mean?

it means that you already have high credit from banks in the form of debt.. it must be showing low on your credit score also.. hence they don't want to give you a credit card.. i would be happy as it may darg you down further.. plan to clear your debt quicker and you can get a cc from where you have your loan.. take some time to stabilize.. dont rush.. if ur debt is 2x ur ctc and ur emi is 40% then your are high on leverage already and the loan tenure will be a long one.. avoid the CC for now

 

[praveensudhakaran]

it means that you already have high credit from banks in the form of debt.. it must be showing low on your credit score also.. hence they don't want to give you a credit card.. i would be happy as it may darg you down further.. plan to clear your debt quicker and you can get a cc from where you have your loan.. take some time to stabilize.. dont rush.. if ur debt is 2x ur ctc and ur emi is 40% then your are high on leverage already and the loan tenure will be a long one.. avoid the CC for now

But my credit score is 825, and the debt is Home loan.

 

[Zacobite]

But my credit score is 825, and the debt is Home loan.

even then.. your debt is high as compared to ctc.. dont rush for cc.. the rejection will hurt ur cc.. lotsa home loan banks also offer cc.. which bank is ur HL from.. check with them. for cc as they wd have done your credit chk

 

[Mruseless]

But my credit score is 825, and the debt is Home loan.

For banks High credit limit on other cc is considered as debt.

 

[praveensudhakaran]

even then.. your debt is high as compared to ctc.. dont rush for cc.. the rejection will hurt ur cc.. lotsa home loan banks also offer cc.. which bank is ur HL from.. check with them. for cc as they wd have done your credit chk

Thank you, I have CC from other Banks. Thought of adding one from SBI cards(only for offers).

HL is from HDFC.

Will wait for sometime.

 

[praveensudhakaran]

For banks High credit limit on other cc is considered as debt.

Thank you, that's a new insight. In that case, I have a huge debt 😉

 

[Zacobite]

Thank you, that's a new insight. In that case, I have a huge debt 😉

its true.. high leverage is leading to cc decline for people who have high CC limits.in comparison to salary.. Aurum has started doing it, few others.. there are some threads on this..

 

[Chaitanya-a]

Thank you, I have CC from other Banks. Thought of adding one from SBI cards(only for offers).

HL is from HDFC.

Will wait for sometime.

I too have cc from other banks but SBI is continuously rejecting my application. Got to know this is because they are considering me highly leveraged. Nowadays its better to apply SBI card first and then other cards.

 

[Strange]

I too have cc from other banks but SBI is continuously rejecting my application. Got to know this is because they are considering me highly leveraged. Nowadays its better to apply SBI card first and then other cards.

AU is doing the same thing right? @deep@vie

What about IDFC?

 

[Chaitanya-a]

AU is doing the same thing right? @deep@vie

What about IDFC?

IDFC isn't considering this for CC approvals as of now.

 

[praveensudhakaran]

I too have cc from other banks but SBI is continuously rejecting my application. Got to know this is because they are considering me highly leveraged. Nowadays its better to apply SBI card first and then other cards.

I Had SBI prime, downgraded to simplysave and closed it later. That was a mistake

 

[praveensudhakaran]

Thank you, that's a new insight. In that case, I have a huge debt 😉

Just calculated, my credit limt of entire CC is 3X of CTC.

2X+3X=5X leveraged

 

[deep@vie]

AU is doing the same thing right? @deep@vie

What about IDFC?

No, in case of AU, it's easier than SBI but it's very stringent with verifications

 

[praveensudhakaran]

IDFC isn't considering this for CC approvals as of now.

They didn't consider anything, I guess when I applied for it. They gave me IDFC wealth card with the 8L within minutes!

 

[Zacobite]

Just calculated, my credit limt of entire CC is 3X of CTC.

2X+3X=5X leveraged

Home Loan is a secure loan so it is seen less negatively.. but yeah... take your time

 

[ismail]

SBI is considering all the combined limit of all your credit cards and comparing with your salary, and then probaly they cannot spare a credit limit for you. None of other companies do it. hence the lowest limits for SBI cashback cards. My take

 

[anotheruser]

Just curious, why just CTC in picture? What if someone has other investments and savings?

 

[praveensudhakaran]

Just curious, why just CTC in picture? What if someone has other investments and savings?

No idea, whether SBI provide CC for students in that case?

 

[Chaitanya-a]

Just curious, why just CTC in picture? What if someone has other investments and savings?

Have to fetch data from depositories then, along with credit bureaus.

Not necessarily investment is from your money only. It can be your parents income as well. But CTC in your name is yours.