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

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praveensudhakaran

TF Premier
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?
 
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praveensudhakaran said:
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?
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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
 
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Zacobite said:
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
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But my credit score is 825, and the debt is Home loan.
 
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Zacobite said:
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
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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.
 
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praveensudhakaran said:
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.
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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.
 
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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
 
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