Applying for a credit card can often be a lengthy process especially if you are applying for the first time. To approve a credit card, banks, card issuers, and the bureau conduct a check on your credit report and your credit score. It is important to make sure everything is in order before you apply for a credit card, or else there can be a delay in the approval process, or it can also lead to the rejection of your application.
Top 6 tips for Credit Card Instant Approval
Maintaining a Good Credit Score
It is very important to maintain a good credit score, preferably above 700 to ensure that the banks do not think of you as a risk while approving your credit card. Having a low credit score indicates late payments, skipping due date of credit card cycles or not paying the card bill in full.
Any of these factors can deem you as a risk for the bank or the issuer. You can check your credit score through a number of third-party websites or request your credit report directly from the Experian website to know the details of your past loans and repayment history. If you notice any kind of discrepancies, you can immediately have it rectified so as to not let it affect your credit card instant approval process.
Decreasing your Credit Utilization Ratio
Your credit utilization ratio is one of the major factors which are taken into consideration while approving your credit card request.
A lower ratio is always beneficial for the banks to understand that you are a responsible spender. If your utilization ratio is high, it means you spend more than 30% of your credit limit every month. This indicates that you are a reckless spender and just make large payments without having the capacity to pay the amount back in full.
The banks will deem you as a responsible spender if your credit utilization is less than 30% of your credit limit on your existing card. It will increase your chances to get your card approved faster.
Knowing Your Requirements
It is important to understand your requirements before applying for your credit card. There are several credit cards to choose from which are offered by several banks in the country and each card fits in a separate category such as travel, shopping, rewards, etc.
If you get a random credit card and spend your credit limit without understanding your basic requirements, you will be seen as a risk by the bank and it can lead to increase in interest rates or decrease in credit limit. If you are reckless, they will not approve your credit card application.
In order to apply for a credit card, there are a number of documents which is required by the bank or the card issuer. These include your PAN card, Aadhaar card, Passport, Form 60, Form 16, Income Tax returns, salary slips and so on.
If during the time of application, these are not uploaded in order or are not organised, any error in the form will lead to disapproval of your application. It is advised that you gather and arrange all the required documents and only then start the application process.
Applying for Multiple Credit Cards at Once
It is advised never to apply for multiple credit card at one time thinking it is a good idea to keep a backup. Each application which is sent to any bank is recorded in the credit report and this is under constant check by banks, card issuers, and the credit bureau.
The bank will deem you as a risk as applying for multiple cards indicates that you are in urgent need of money and you might lack the capacity to pay the money back. This automatically delays your application process as it takes time for your applications to be reviewed.
Not Choosing the First Card you see
Research is an integral part of applying for a credit card. In a market, especially like India where the scope of credit card applicants is increasing every day, your research on all credit cards should be adequate.
Factors such as joining fee, annual fee, interest rate, offers, credit card reward point benefits, offers on shopping and fuel, etc. should be compared between various cards. Once you find the right card, only then your application should be sent. Knowing what exactly you want from your card can help speed up your application, especially if applied through offline methods.
Organising all your documents such as photocopies and originals of PAN card, Aadhaar card, Passport, bank statements, and a filled application form must be completed before applying.
If not done, it will just result in the delay of the application and the credit card instant approval process.
These are 6 tips by which you can get Credit Card Instant Approval. It is advised that opt for online applications instead of offline, as they are faster when compared to the latter. Your application process is faster which in turn will help speed your credit card instant approval process.