So, you’ve applied for a credit card—convinced you met all the basic requirements—only to find out your application was rejected. Frustrating, right?
You’re not alone. Many Malaysians face this situation and wonder what went wrong. The truth is, banks assess more than just your salary before approving a credit card. Here are five common reasons your application might be declined, and how you can improve your chances next time.
1. You Already Have Too Much Financial Commitment
Even if your income looks good on paper, your existing financial obligations—such as loans or hire purchases—could be eating into your budget.
- Why it matters: Banks use something called the Debt Service Ratio (DSR) to calculate how much of your income goes toward repaying debts. A high DSR signals financial strain.
- What to do: Try to reduce your existing debt before reapplying.
2. You Don’t Have a Credit History
If you’ve never used credit—no loans, no past cards—it may actually work against you.
- Why it matters: Banks assess your creditworthiness based on your history. No history means no track record, which makes it hard to judge how reliable you are.
- What to do: Start small—try a secured credit card or a basic financing plan to build your profile.
3. Your Income Isn’t Stable or Properly Documented
Freelancers, gig workers, and self-employed applicants often face challenges proving stable income—even if they earn well.
- Why it matters: Lenders want to see consistency. Without proper documentation like salary slips or EPF contributions, your income may not be considered “verifiable.”
- What to do: Maintain proper records and bank statements. If you’re newly employed, wait a few months before applying.
4. You Submitted an Incomplete or Incorrect Application
A surprising number of applications are rejected due to missing documents or inaccurate details.
- Why it matters: Even minor errors can raise red flags or delay processing.
- What to do: Double-check everything before submitting. Ensure you’ve included all the necessary documents like utility bills, salary slips, and identification.
5. There Are Red Flags in Your Credit Report
Missed loan payments? Unresolved debts? These can all hurt your application.
- Why it matters: Banks rely on your CTOS or CCRIS report to determine how responsible you are with money.
- What to do: Get a free credit report to check your status and resolve any outstanding issues before applying.
Final Thoughts
Getting rejected for a credit card isn’t the end of the road—it’s a chance to understand and improve your financial standing. Whether it’s reducing debt, building a credit history, or improving your documentation, every step you take brings you closer to approval.
At Fincrew, we help Malaysians make smarter financial decisions, from comparing insurance to understanding credit. Stick with us as we guide you through every money move that matters.
