Imagine you’ve carefully filled out a credit card application, submitted all necessary documents, and eagerly await your approval. But then, the unthinkable happens—your credit card application gets rejected. It is a frustrating experience, leaving you questioning where you went wrong. Many face this scenario, and it is essential to understand why this happens and how to navigate it. This blog will guide you through what your next steps should be after this. This can help you improve your chances next time so you wouldn’t have to wonder, “why did my credit card application got declined”.

Understand the Reasons Behind Rejection

When your credit card application gets denied, it’s crucial to identify the reasons. Here are some common causes:

• Poor Credit History: Lenders check your credit history to gauge your creditworthiness. A low credit score can be a red flag.
• Insufficient Income: Credit card issuers require a specified minimum income level. This ensures you can repay the credit. Falling short of this requirement can lead to rejection.
• Existing Debt: Existing debt, which is high relative to your income, can cause troubles. It can make lenders hesitant to extend more credit.
• Faulty Application: Maybe your credit card application got declined because of missing or incorrect information in your application.  

Review Your Credit Report

After facing a rejection, review your credit report for errors or issues. You can get a free credit report from credit bureaus. Look for inaccuracies or old information that can negatively impact your score. If you find errors, report them immediately to get them corrected. Monitoring your credit report helps you stay on top of your financial health.

Improve Your Credit Score

If poor credit history is the reason for rejection, take steps to improve your credit score:

• Timely Payments: Pay your bills on time to build a positive payment history.
• Reduce Debt: Lower your existing debt levels to improve your credit utilisation ratio.
• Limit Credit Inquiries: Do not apply for multiple credit cards or loans in a short period.

Consider a Secured Credit Card

A secured credit card is an excellent option if your application was declined because of a poor credit history. A secured credit card requires a fixed deposit as collateral. This makes it less risky for the lender. Using a secured card responsibly can help rebuild your credit score. It also can make you eligible for an unsecured credit card in the future.

Ensure Accurate and Complete Applications

Double-check your application before submitting it. Ensure all information is accurate and complete. Missing details or incorrect information leads to an automatic rejection. Provide all necessary documents and ensure they are up to date.

Evaluate Your Income and Expenses

If your application was declined because of insufficient income, evaluate your financial situation. Look for ways to increase your income or reduce expenses. Demonstrating a stable and sufficient income can improve your chances of approval.

Reapply Strategically

After addressing the issues that led to your rejection, consider reapplying. But don’t rush into it. Focus on improving your credit score and financial situation. When reapplying, choose a card that aligns with your credit profile and needs.

Explore Alternative Options

If your requests for credit cards are declined by VISA and MasterCard, explore alternatives like RuPay credit cards. RuPay cards offer similar benefits and are widely accepted across India. IndusInd Bank provides a RuPay credit card called the IndusInd Bank Platinum RuPay Credit card. This card can be a stepping stone to building your credit history.

Also Read: People with a Low CIBIL Score Can Still Get a Credit Card: Here’s How

Conclusion

Facing a rejected credit card application can be disheartening, but it isn’t the end of the road. If you understand the reasons behind the rejection, take corrective measures. This can improve your chances of approval in the future. Monitor your credit report, maintain a healthy credit score, and take other steps to improve your chances. Don’t let a rejection deter you—take control of your financial future today!

Looking for a credit card tailored to your needs? Consider exploring IndusInd Bank’s credit cards. From secured credit cards to RuPay cards, IndusInd Bank has a variety of options designed to meet your financial requirements.

Apply now and learn more about IndusInd Bank Credit Cards and find the perfect card for you.

Disclaimer:
The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.

An OTP or a one-time password has become an integral part of online transactions and banking in recent times. Especially for credit card transactions, OTP ensures an added layer of security and prevents misuse. This has become especially important as the number of digital payment fraud cases reported by banks increased by 70.64% to ₹2,604 crore in the six-month period from October 2023 to March 2024. This article discusses what OTP means in the context of credit cards, how it works, its benefits, and some tips for using OTP securely.

How OTP Works in Credit Card Transactions

To understand how OTP works, let us first learn what is OTP in a credit card transaction.

When you make an online purchase through a credit card, you need to fill in the card details like card number, expiry date, CVV number, etc. Once you submit this information, the bank initiates a request for OTP to verify it’s really you who is making the purchase. 

An OTP in credit card transactions is a random four or six-digit numerical code sent to your registered mobile number or email ID. You need to enter this OTP while completing the transaction to confirm your identity.

The OTP is auto-generated and keeps changing, so it cannot be predicted or reused. Once you submit the valid OTP, the transaction is approved by the bank. If an incorrect OTP is entered multiple times, the bank may block the card to prevent misuse.

Importance of OTP in Credit Card Transactions

• Adds a layer of security over static passwords
• Ensures the cardholder alone can access the card and make purchases
• Prevents identity theft and misuse if card details are compromised
• Allows the bank to authenticate the real cardholder before approving transactions
• Simpler than remembering complex passwords for each transaction
• Can alert users if unauthorised transactions are attempted

Benefits of Using OTP in Credit Cards

Some key benefits of using OTP in credit card transactions include:

• Enhanced security for card and accounts
• A one-time password solution for users
• Instant alerts to cardholders for each transaction
• Faster processing of transactions after OTP verification
• Reduces fraud and identity theft risks
• Valid only for specific session, cannot be reused
• Simple and hassle free for customers
• Provides real-time confirmation of payments
• Wide applicability for varied transactions

Using OTP Securely for Credit Cards

Also Read: What is Skimming of Credit Cards?

The Importance of Security

Keeping your credit card and related information secure is extremely important to avoid misuse and fraud. IndusInd Bank provides various facilities to ensure enhanced security for credit card transactions, like OTP-based purchases, updated EMV chip cards, secure online portals, etc. IndusIndBankCredit Cards with one-time passwordsalso come equipped with features like account monitoring, fraud detection, transaction alerts, and the ability to block the card instantly.

Apply for credit card seamlessly through the official IndusInd Bank website to get a credit card that follows stringent security protocols. IndusInd Bank offers a range of credit cards like the Legend Credit Card, Platinum RuPay Credit Card, EazyDiner Platinum Credit Card, etc., that provide a host of rewards and benefits while maintaining bank-level security. The competitive interest rates and instant online approval process further make IndusInd Bank Credit Cards a preferred choice for safe cashless transactions.

Conclusion

OTPs provide credit card users with a time sensitive, one-use password to authenticate transactions, preventing misuse while maintaining convenience. By understanding how it works and using OTPs securely, credit card holders can reap its benefits while enjoying peace of mind against online frauds.

Apply now for an IndusInd Bank Credit Card!

Credit cards have become an indispensable part of present-day life. They provide a convenient way to make payments and access credit, increasing their popularity in the country. The most recent data released by the Reserve Bank of India (RBI) indicates that the total number of credit cards in the system was 100.60 million as of February 2024.

However, as credit card usage has increased, so has credit card fraud. Fraudsters use various techniques to create fake credit cards that resemble real ones. Being able to identify a counterfeit credit card can help you avoid becoming a victim of credit card fraud. This article provides a detailed guide on how to spot a fake credit card.

Examine the Physical Card

A genuine credit card is made of durable plastic material and has a smooth, consistent finish. It feels sturdy when held. Some key aspects to inspect on the physical card include:

• Texture – A fake credit card may feel flimsy or rough. Run your fingers along the edges to feel for inconsistencies.
• Rigidity – Try bending the card slightly to check its stiffness. A real card will be rigid and resistant to bending.
• Embossing – Carefully inspect the embossed numbers. They should be clear, evenly spaced and aligned on an actual card. Irregular spacing implies a forged card.
• Holograms – All major credit cards have holograms that are hard to duplicate. Tilt the card and look for a distinct, three-dimensional holographic image.
• Logos – Check if the logos, issuer names, and symbols look accurate and professionally printed. Fake logos often appear uneven, blurred, or pixelated.
• Magnetic strip -A genuine magnetic strip is smooth, firmly attached and colour-wise uniform. It shouldn’t be peeling off or damaged.

Examine the Numbers

Credit card numbers follow certain patterns set by the issuing networks like Visa, MasterCard, etc.

• First digit – The first digit identifies the card network. For instance, 4 = Visa, 5 = MasterCard. Verify that the first number matches the logo. Fake credit card numbers may not match this.
• Length – Check if the card number has the standard 16 digits for Visa/MasterCard or 15 for American Express.
• Spacing – Numbers on an actual card have uniform spacing. Irregular spacing is a red flag.
• Alignment – Numbers on counterfeits may not be perfectly aligned or evenly sized.

Verify Security Features

• CVV code – Fake credit cards rarely have a properly printed security code. The 3-digit CVV should be clear and well-defined.
• Expiration date – Check if the expiration date is logically valid and not expired. Also, see if it matches the issue/valid date.
• Signature panel – Apart from a clear signature strip, ensure it is properly placed with accurate font and printing.
• Microprinting – Many cards have microprinting around the edges and under the account number. It’s almost impossible to duplicate. Use a magnifying glass to inspect.
• Chip – All modern credit cards have an embedded microchip. Avoid cards with damaged chips or no chips at all.

One effective way to avoid fakecredit cards is to apply for credit card directly through the official website of a reputable bank. IndusInd Bank offers a wide range of credit cards with attractive benefits like reward points, fuel surcharge waivers, complimentary lounge access, travel privileges, EMI conversion, and enhanced security features.

You can conveniently apply online through a 100% digital process and get instant approval. Applying through the official IndusInd Bank website ensures customers get legitimate cards that provide maximum rewards, savings, and convenience across travel, dining, shopping and other transactions.

Also Read: Learn About Instant Approval Credit Cards

The Bottom Line

Scrutinising a card’s physical qualities along with verifying the printed details can help reveal mostfake CCs. If you remain vigilant and learn how to spot counterfeit cards, you can detect fraudulent transactions and reduce the risk of becoming a victim. Being able to identify fake credit cards gives you a significant layer of protection against credit card scams.

Apply now for an IndusInd Bank Credit Card!

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.  

Managing multiple credit cards with differing interest rates and due dates is tough. You must pay your credit card bills on time to avoid penalties and debt accumulation. One of the ways to repay bills, including your credit card bills, is by using your credit card.  

Ways to Pay Credit Card Bill with another Credit Card

You can only pay your credit card bill with another credit card through indirect payment methods like a balance transfer, cash advance, or e-wallets.

Credit card companies and banks discourage this mode of payment, since it leads to additional fees and higher interest rates, which could lead to a worsening financial situation for you as a customer. However, if this is your last resort for the time being, then here are three ways to pay your credit card bill with another credit card:

• Balance Transfer: You can transfer your outstanding credit card balance to another credit card (which offers a lower interest rate) to pay your credit card bill. Here are the steps that you must follow to pay your credit card bill using the balance transfer option:
  • Confirm the amount that must be transferred: Check your credit card bill and confirm the amount that you need to pay using balance transfer. Doing so will help you choose a balance transfer credit card with the required credit limit.
  • Research and compare balance transfer credit cards online: You must prioritise credit cards with a low interest rate while researching balance transfer credit cards online. You can compare these cards using an online credit card EMI calculator. Be sure to check the duration of the no-interest period.
  • Check the fees charged for a balance transfer: Banks charge a transaction fee worth 2-4% of the transferred sum when a customer opts for a balance transfer. You must contact the bank to know more about this fee while comparing credit cards, as it could change depending on the bank.
  • Apply for a balance transfer credit card: You can do so by downloading the bank’s mobile banking app or visiting its website.
  • Check your credit limit before initiating the balance transfer: Before initiating a balance transfer, you must check your balance transfer credit card’s credit limit again. Exceeding this limit might lead to the transfer not going through or could also incur penalty charges.

• Cash Advance: If credit card A is the credit card whose bill you wish to pay and credit card B is the card you are using to pay the bill, here are the steps you must follow:
  • Check your cash advance limit on credit card B: A cash advance limit is the amount that you can withdraw as cash from an ATM. It is usually lower than your overall cash limit. You must check the cash advance limit on credit card B to check if you can use that card to pay the bill for credit card A.
  • Withdraw cash using credit card B from an ATM: Next, you must visit an ATM that accepts cash withdrawals using credit cards. Insert credit card B, enter your PIN, and withdraw the required amount.
  • Deposit this cash into your savings account: You can now deposit this cash into your savings account. You can visit a bank branch and fill a deposit slip with your account number and the amount you are depositing.
  • Log in to your mobile banking app: Next, log in to your mobile banking app by entering your username and password.
  • Pay your bill: You can now use the money deposited in your savings account to pay the bill for credit card A.

• E-wallet or UPI: Another way you can use one credit card to pay off another credit card’s bill is through an e-wallet or UPI app. Here are the steps you can follow:
  • Sign up for an e-wallet: E-wallets like Google Pay help you make instant fund transfers using your bank account. You can also link these to UPI to facilitate online fund transfers.  
  • Link your credit card to an e-wallet: You must log in to your e-wallet app, add the details of the credit card through which you wish to pay the bill, such as the card number and CVV (Card Verification Value), and verify the card as the last step.
  • Transfer funds from your credit card to your e-wallet: You can now transfer funds by choosing your linked credit card as the source of funds to pay another card’s bill.

Also Read: How to Pay Credit Card Bills Using UPI?

Pros and Cons of Paying a Credit Card Bill Using another Credit Card

In Summary

There are three ways of paying your credit card bill using another credit card – a credit card balance transfer, a cash advance, and an e-wallet. These are indirect methods of paying your credit card bills and are not recommended by banks since they can lead to higher interest rates, higher fees, and debt accumulation.

Apply now for an IndusInd Bank Credit Card!

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.  

Planning an international trip can be exciting, but it also involves carefully considering how to handle your finances abroad. With credit cards and forex cards being the two most popular options, which one should you choose? Here is an in-depth comparison of credit cards versus forex cards to help you decide which is better suited for your upcoming foreign travel. 

How They Work

Forex cards function like prepaid debit cards. You load the card with foreign currency before your trip and then use it to withdraw cash or make purchases internationally. The amount spent is deducted from the card balance. Forex cards provide the benefit of locking-in exchange rates at the time of loading the card, protecting against currency fluctuations later.

Comparing forex cards vs credit cards, credit cards allow you to make transactions on credit against your credit limit. While using a credit card internationally, the transaction amount gets converted to your home currency based on the bank’s foreign exchange rate applicable. Your credit card provides a revolving credit facility without having to preload any amount.

Acceptance

One of the major attractions of credit cards vs forex card is their wide acceptance globally. Popular cards like Visa and MasterCard are accepted by millions of merchants and ATMs worldwide. Forex cards also enjoy good acceptance as they are affiliated with payment networks like Visa and MasterCard but may not be as widely accepted as credit cards.

Transaction Charges

Forex cards do not entail any additional charges or loading fees. You only pay the currency exchange rate at the time of loading the card. However, credit card transactions attract a markup fee of 1% to 3.5% on the transaction value charged by the bank. So, forex cards can offer significant savings on foreign currency transactions.

Exchange Rate Lock-in

One of the biggest benefits of forex cards is that you can lock-in the currency exchange rate at the time of loading the card. This protects you from any adverse exchange rate movements thereafter. Credit cards use dynamic conversion rates that keep fluctuating daily, exposing you to exchange rate risk.

Security Concerns

Forex cards offer greater security, as they are prepaid instruments without any link to your bank account. Even if your forex card gets stolen, your bank account remains protected. However, credit card loss or theft makes your savings vulnerable to fraud.

Credit cards provide better dispute resolution support because of additional checks, and verifications involved. Fraudulent transactions on credit cards can be reversed more easily.

Reloads

An exhausted forex card can be reloaded online by transferring money to the associated account. Credit cards offer better flexibility with no need for any reloads. Your credit limit gets replenished automatically upon repayment of dues.

Rewards and Offers

Most credit cards come loaded with features like rewards points, cashback, lounge access, and insurance. These perks enhance your overseas travel experience. Forex cards provide limited benefits in comparison.

Also Read: All You Need to Know About Travel Credit Cards

So, Which One is Better?

Forex cards are better suited for budget travellers looking to save on foreign transactions, ATM withdrawals, exchange rate fluctuations and avoid credit card debt. Frequent international travellers who understand credit card usage intricacies and do not need tight budgeting prefer the convenience and rewards of credit cards.

Using a credit card during international travel can offer the optimum mix of safety, savings, and convenience. The IndusInd Bank Legend Credit Card offers a discounted foreign currency mark-up fee of 1.8% along with a range of exciting travel offers and discounts. Besides this, you can also enjoy access to over 600 airport lounges across the world using the complimentary Priority Pass. The best part? You can apply for this credit card through a 100% digital process and get instant approval. Apply now!

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.