Reason behind HSBC Credit Card Rejection?

[Achal]

I had applied for HSBC credit card offline. My credit score is 779. Their system recommended not to provide the card. The HSBC personnel said that reason code that was given for rejection was that I don't have a cibil score but when I checked my cibil report there was a hard enquiry from HSBC.
I did not have any enquiries in last 30 days and had 3 enquires in last 90 days.
Does HSBC have any limits on enquiries??

 

[souvikdey2002]

@souvikdey2002
@Subhankar
@bhavyegoel
@TechnoFino

Your query is not clear to me, however here is my answer:-

1. If you apply for any Credit Card, online/offline, you are likely to get an enquiry on your Cibil even if your card is not approved. This is because the Auto BOT access your Credit Score from different bureaus.

2. Generally one bank only does one enquiry for one credit card application if done in a stretch. If 3 enquiries were done in that case you need to check from which bank it was. Should not be from HSBC alone.

P:S:- I don't know where you belong to & what do you do but let me tell you one Criteria for their Credit Card.

1. The resident must be from Metro City like, Kolkata, Mumbai, Delhi, Chennai, Bangalore.
2. The applicant must be salaried, even they doesn't offer Credit Card to High value ITR people.

Again these are their internal criteria's, not mine. So don't take personally.

 

[Achal]

Thanks for your response, here are my comments for each point

1. Bank gave the reason that I dont have a cibil score but I do have. And even if this was the reason then how come an enquiry happened, so clearly the reason is different

2. The 3 other enquiries are from different banks. The reason I mentioned this is because I wanted to know if HSBC has any criteria where they don't give cc if you have 3 or more enquiries in last 90 days

3. I am from one of the mentioned metro cities only. Also, after claiming exemption and deductions I don't pay any taxes, so clearly i am not a high value ITR person. And yes, I am salaried.



"I did not have any enquiries in last 30 days and had 3 enquires in last 90 days."

The meaning of this point was let's say I applied for cc on 1st of April. The point means i had no enquiries in my cibil between 1st March and 31st March. Also, I had 3 enquires between 1st January and 31st March

 

[Extrovert🌃]

Threaten them to escalate to RBI ... Tell them they have to give proper reason

I guess at the end of the day they'll reply "you've not met our internal criteria" , not sure rbi can do anything with a product that isn't yet offered to customer.

 

[souvikdey2002]

Thanks for your response, here are my comments for each point

1. Bank gave the reason that I dont have a cibil score but I do have. And even if this was the reason then how come an enquiry happened, so clearly the reason is different

2. The 3 other enquiries are from different banks. The reason I mentioned this is because I wanted to know if HSBC has any criteria where they don't give cc if you have 3 or more enquiries in last 90 days

3. I am from one of the mentioned metro cities only. Also, after claiming exemption and deductions I don't pay any taxes, so clearly i am not a high value ITR person. And yes, I am salaried.



"I did not have any enquiries in last 30 days and had 3 enquires in last 90 days."

The meaning of this point was let's say I applied for cc on 1st of April. The point means i had no enquiries in my cibil between 1st March and 31st March. Also, I had 3 enquires between 1st January and 31st March

1. The terminology is different, i.e. sometimes even if you do have a Score but not up to the mark so that you can be offered a Credit Card, is as good as you don't have a Cibil Score. Now this again varies bank to bank, for example, if you do have Score of 750+ then you are eligible to get a basic credit card of ICICI/HDFC, on the other hand for HSBC you will not be offered anything so they say "You don't have Cibil Score'.

Once again, enquiry will always happen since this is the only way the bank will come to know how much your cibil score is, how much Credit Worthy you are, how much depth of credit you have and how many credit cards you hold.

Taking all of these in to account they will decide whether or you can be offered which category of card.

2. Nothing that sort of happens generally. I have 7 enquiries in last 90 days & I was offered their Cashback Credit Card.

3. I guess number 1 point played a big role for you & they didn't considered your income or Salary or from where you belong to although these factors are also taken in to account once you are through with number-1.

I hope this clears your confusion.

 

[souvikdey2002]

I

Threaten them to escalate to RBI ... Tell them they have to give proper reason

I don't think HSBC can be threaten in this case because they didn't commit to give him a card anywhere but off course he can ask for the reason why.
If they did, they off course he can & should escalate.

 

[Achal]

1. The terminology is different, i.e. sometimes even if you do have a Score but not up to the mark so that you can be offered a Credit Card, is as good as you don't have a Cibil Score. Now this again varies bank to bank, for example, if you do have Score of 750+ then you are eligible to get a basic credit card of ICICI/HDFC, on the other hand for HSBC you will not be offered anything so they say "You don't have Cibil Score'.

Once again, enquiry will always happen since this is the only way the bank will come to know how much your cibil score is, how much Credit Worthy you are, how much depth of credit you have and how many credit cards you hold.

Taking all of these in to account they will decide whether or you can be offered which category of card.

2. Nothing that sort of happens generally. I have 7 enquiries in last 90 days & I was offered their Cashback Credit Card.

3. I guess number 1 point played a big role for you & they didn't considered your income or Salary or from where you belong to although these factors are also taken in to account once you are through with number-1.

I hope this clears your confusion.

As I mentioned in the first part of this thread, my CIBIL Score while applying was 779. Thats not good enough for HSBC Credit Card??

 

[souvikdey2002]

As I mentioned in the first part of this thread, my CIBIL Score while applying was 779. Thats not good enough for HSBC Credit Card??

If they didn't issue the card to you that means yes, it is not good enough for them.

 

[Parvesh Goyal]

As I mentioned in the first part of this thread, my CIBIL Score while applying was 779. Thats not good enough for HSBC Credit Card??

Good Cibil score is not a guarantee to get the card. If u have multiple cards then also HSBC will hesitate to give card. Multiple reasons for rejection..

 

[Subhankar]

I had applied for HSBC credit card offline. My credit score is 779. Their system recommended not to provide the card. The HSBC personnel said that reason code that was given for rejection was that I don't have a cibil score but when I checked my cibil report there was a hard enquiry from HSBC.
I did not have any enquiries in last 30 days and had 3 enquires in last 90 days.
Does HSBC have any limits on enquiries??

HSBC doesn't focus on enquiry but they have different focuses:
1. Credit Exposure:
i) Credit Limit: The amount of credit limit provided to you by all other banks. If that credit limit exceeds even at 1.5x from your current CTC, which you're submitting to the bank through income docs, they'll straightaway decline your application.
ii) Credit Account: If you happen to have more than 4 credit account, the chance of getting the application declined gets higher.
2. Your Earning Source: Only Salaried employees get HSBC cards. Even if you hold HSBC Premier acc, you may not get a card. From the employees, they usually decline the application of the Govt. Employees.
3. You Location: Tier 1 cities are supported and most of the tier 2 cities aren't. So check your residential, permanent address

 

[souvikdey2002]

HSBC doesn't focus on enquiry but they have different focuses:
1. Credit Exposure:
i) Credit Limit: The amount of credit limit provided to you by all other banks. If that credit limit exceeds even at 1.5x from your current CTC, which you're submitting to the bank through income docs, they'll straightaway decline your application.
ii) Credit Account: If you happen to have more than 4 credit account, the chance of getting the application declined gets higher.
2. Your Earning Source: Only Salaried employees get HSBC cards. Even if you hold HSBC Premier acc, you may not get a card. From the employees, they usually decline the application of the Govt. Employees.
3. You Location: Tier 1 cities are supported and most of the tier 2 cities aren't. So check your residential, permanent address

The below mentioned points is not applicable to me although I recently got their Cashback Card with a 1,21.000 limit.

Credit Exposure:

i) Credit Limit: The amount of credit limit provided to you by all other banks. If that credit limit exceeds even at 1.5x from your current CTC, which you're submitting to the bank through income docs, they'll straightaway decline your application.
This point is not valid for me, they have given me a Credit Card where my Credit exposure is almost 400% than my current CTC

ii) Credit Account: If you happen to have more than 4 credit account, the chance of getting the application declined gets higher.
I'm using total 9 Credit Cards at the moment. .

Rest are applicable to me.

 

[Subhankar]

The below mentioned points is not applicable to me although I recently got their Cashback Card with a 1,21.000 limit.

Credit Exposure:

i) Credit Limit: The amount of credit limit provided to you by all other banks. If that credit limit exceeds even at 1.5x from your current CTC, which you're submitting to the bank through income docs, they'll straightaway decline your application.
This point is not valid for me, they have given me a Credit Card where my Credit exposure is almost 400% than my current CTC

ii) Credit Account: If you happen to have more than 4 credit account, the chance of getting the application declined gets higher.
I'm using total 9 Credit Cards at the moment. .

Rest are applicable to me.

I just stated what I observed with most of the people. It's great that you got it.

 

[souvikdey2002]

I just stated what I observed with most of the people. It's great that you got it.

Understood & agreed,
I just stated mine because I think we all are trying to make a common understanding from everybody's credit card experience.

 

[prc1990]

I received the HSBC VISA Platinum Credit Card (LTF) back in Feb'22 and have received all the welcome benefits listed below.

1. Amazon Voucher worth 250 for completing VKYC successfully

2. Two Amazon Vouchers worth 250 each (i.e. total 500) as welcome benefits.

3. Received 3 meal vouchers (unable to recollect the details)

4. 50% upto 100 real cash (credited to the card directly) for using it on GPay

5. 10% upto 2000 real cash (credited to the card directly) for spending an amount of 20K or more within 60 days from the card issuance.

Total Profit (excluding meal voucher): 250+500+100+2000 = 2850.

 

[souvikdey2002]

I received the HSBC VISA Platinum Credit Card (LTF) back in Feb'22 and have received all the welcome benefits listed below.

1. Amazon Voucher worth 250 for completing VKYC successfully

2. Two Amazon Vouchers worth 250 each (i.e. total 500) as welcome benefits.

3. Received 3 meal vouchers (unable to recollect the details)

4. 50% upto 100 real cash (credited to the card directly) for using it on GPay

5. 10% upto 2000 real cash (credited to the card directly) for spending an amount of 20K or more within 60 days from the card issuance.

Total Profit (excluding meal voucher): 250+500+100+2000 = 2850.

After how many days received all of these?

 

[prc1990]

After how many days received all of these?

Within 60 days 🙏.

 

[Cierdo]

Just putting it out there for future reference.
I had applied for HSBC Platinum card and declared X as my income, whereas my actual income was 2X in the application docs. After 2-3 days I received a mail that bank was unable to offer me a credit card on the basis of my documents and that they'd be willing to reconsider if I could mail them my income docs (Salary Slips).
I think they calculate a leverage ratio, anyone surpassing that would be ineligible. After furnishing income docs, I received an approval within 2 days.
Also, HSBC was the first bank to add my office address in my CIBIL report. I guess they also have some criteria of filtering out or giving preference to some employers.

 

[AsB]

I think they calculate a leverage ratio, anyone surpassing that would be ineligible.

Can you please explain a little bit, with example, as to what leverage ratio is ?

 

[Cierdo]

Can you please explain a little bit, with example, as to what leverage ratio is ?

That is your (total credit limit + any emis on loan)/annual income

 

[prc1990]

That is your (total credit limit + any emis on loan)/annual income

And what's the max. acceptable value for this? Any idea?