Home Finance Everything About Instant Approval Credit Cards & How To Apply For One

Everything About Instant Approval Credit Cards & How To Apply For One

Credit Cards

With the advent of the internet, applying for a credit card is more convenient. You can submit your application from the comfort of your home with just a few clicks on your computer and get approval within hours. It eliminates the hassle of waiting for a minimum of 10  to 15 days to get a response from the issuing bank. 

Instant approval credit card 

When you apply for a credit card online, you can avail of an instant approval process. Upon receiving your credit card application, the issuing bank runs a preliminary credit check to determine your creditworthiness. If you have a healthy credit score, you will get approval within hours of submission. After receiving your credit score, your bank will issue a conditional approval. They need to perform an in-depth review of your credit history. 

Your issuing bank or credit card company determines whether or not you are a credit-worthy person by looking into factors like financial backgrounds, including monthly income and past credit card usage. 

How to apply for an instant credit card? 

Before applying for a credit card, you must ensure to meet your issuing bank’s credit card eligibility criteria and prepare the documents required.

Meet the instant credit card eligibility criteria 

Credit card companies or issuing banks offer credit cards based on the following eligibility factors: 

  • Credit score: Your credit score is the first factor that affects your eligibility. It contains information about your credit history, repayment behavior, etc. To get an instant credit card, you must maintain a minimum CIBIL score of 750 
  • Credit utilization: Your credit utilization ratio indicates whether or not you are credit-hungry. If you have utilized more than 40% of your credit utilization ratio in the past, chances are that your application will not be approved. 
  • Loan application: if your issuing bank finds out that you have applied for multiple credit cards, then your application for a credit card will be rejected based on the risks involved. 
  • Income: If you want to apply for a credit card, you must earn a minimum monthly income based on your credit card issuer’s policy. 

It is worth noting that instant approval credit cards are not for individuals with a credit score below 600. You will need to have an excellent credit score to get instant approval. However, that does not mean that you give up on securing a credit card. If you have a bad history, you can work on improving your credit score by clearing your past debts or consider other options, such as a sacred credit card. Also, refrain from applying for a credit card with a bad credit score, as it will reflect negatively on your credit profile. 

Provide Additional information

After meeting the eligibility criteria of your instant credit card issuer, you will need to provide some information on your application. You will have to upload documents to prove that information. 

  • Identification proof – You will need to submit proof of your identity, such as your passport, Aadhaar Card, PAN Card, etc. 
  • Personal information – You will need to mention your full name, contact number, residential address, email address, etc. It is crucial to ensure you are providing accurate information. 
  • Income and employment proof – you will need to provide documents proving your employment or income, such as salary slips, income statement, etc. 
  • Balance transfer details – If you are opting for a balance transfer, you will need to provide details of your current credit card account, and the amount you are transferring. 

Allow the bank to run verification checks 

After meeting the eligibility criteria and completing your credit card application, your credit card issuer will run verification checks. They will verify if the documents you have uploaded are genuine and the information you have provided is accurate. They might even call your references to verify your income, employment, et. 

If everything is in proper order, your bank will issue a conditional credit card within hours of submission. It means that if your bank finds out that you have a bad credit history, your credit card may get declined. If not, you can continue enjoying the benefits of having an instant credit card. 

In short

Your instant credit card application process depends on factors like your income and your credit score. If you want to apply for a credit card, you must meet the eligibility criteria set by the issuing bank.