Why Was My Credit Card Application Denied?

Credit card application get denied

Have you ever gone through the process of applying for a credit card and learn that your application has been denied?

Not surprisingly, it can be a disappointing experience.

A credit card is one important facility that financial institutions offer. Credit cards offer a pre-approved amount of money to you, which can be used to pay bills and do other financial transactions until you reach the limit.

Things To Know : 

  • Credit cards are forms of personal loans in the UAE.
  • Financial institutions follow the rules and regulations of the UAE Central Bank.
  • The limit of your credit card is decided by the financial institution based on certain criteria.

Knowing why your credit card application got rejected can help you make the changes needed to get approved in the future.

In this article, we'll discuss the possible common reasons why credit card applications are declined and the precautions to follow:

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4 common reasons why credit card applications are denied


The minimum income is the first and foremost criteria to be met.

As per the circular 28/2010 of the Central Bank of UAE, you must have a minimum of AED 60000 of annual income to avail a credit card. That is, you must have at least AED 5000 monthly income.

  • It ensures the bank that you are capable to afford such loans and you can pay back the money.
  • The minimum salary required varies across different banks.

So make sure to know the required minimum income of your prospective bank and find other choices if it doesn't suit you.


Credit card history makes an important part in approving or rejecting your application. It reveals how good you are in financial matters. Thus if you have a poor credit card history the chances to get rejected are very high.

  • Al Etihad Credit Bureau (AECB) keeps records of individual's financial matters. These records are available to individuals and banks and thus they check this before approving a credit card.
  • To ensure a good credit card history you should not make arrears in paying dues.
  • Don't exceed the limits on your cards

Credit card rejection/approval also depends on your debt-burden ratio. Debt-Burden ratio  is a key eligibility criterion and should not exceed 50 percent of the total monthly income.

The debt-burden ratio (DBR) is the ratio of your total monthly financial commitments to your total monthly income.

In short, DBR will decide whether you will get a credit card or not.  Banks conduct credit bureau checks and if your DBR is high your application gets rejected.

How to calculate DBR:

  • DBR : [All loan installments + credit card installments + 5 percent of the total limit on all cards] as a percentage of total income

For example:  if you have 2 loans with a total of 1000 monthly installments and your credit card limit is 25000 and your salary is 10000, then your DBR will be 22.5 per cent

That is 1000 + 1250(which is 5 per cent of 25000)/10000 = 0.225*100 = 22.5 per cent

To ensure good DBR, don't take multiple loans at a time and close unused credit cards also it is better to keep clearance certificates.


Al Etihad Credit Bureau (AECB) determines a score for individuals with bank accounts and who do financial transactions. They analyze all your financial transactions and gives a ranking which indicates the borrower's credibility. The credit score is a three-digit ranking between 300-900. The higher your score the higher is your credibility. Thus if you have a low credit score your application is more likely to get rejected.

  • To ensure a good credit score you should pay your bills on time.
  • Try not to add too much debt to your credit cards.

Thus these are the main four reasons why your credit card application gets rejected in UAE. So, make sure that you are able to meet all these requirements before you apply for a credit card and get things done properly.


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