According to recent data from the RBI, there were 25 crore merchant transactions using credit cards in April 2023 compared to 22 crore in the same month last year. This data clearly indicates this financial product’s immense popularity, and the reasons are simple. One of the primary ones is the financial freedom a credit card offers. Another is the great benefits that are provided these days by different credit card companies, new customers are bound to be drawn towards them.
But, to access all these attractive perks, you first need to apply for a card. Since you are here, let’s assume you are considering applying for a credit card sooner or later. If so, then feel free to check out all you need to know about the application process here. Also, learn how to track your credit card application status. Both these things are equally important.
A quick rundown of the procedure for applying for an instant credit card
It is recommended to go through the ins and outs of a credit card application process, especially for all new applicants. This will allow you to avoid common confusions that lead to hesitations while performing a certain step. So, here are the steps involved:
Step 1: You apply for a credit card from your preferred lender
Before you finalise a credit provider, make sure to analyse the market to learn about the various possibilities. Many people skip this initial inspection and thus end up subscribing to the wrong credit instrument.
Once you have made up your mind regarding the credit card you want, either apply for it online or visit the nearest branch of the bank or lender. Also, you can take the assistance of field sales officers or promotional stall workers in this step.
Disregarding your chosen method, you will be asked to present a set of documents to proceed to the KYC verification stage. These documents normally comprise:
- Your income related documents (recent salary slips, bank account statements, IT returns, etc.)
- ID documents (Aadhaar card or any other government-issued photo ID and PAN card)
- Address proof (any utility bill or bank passbook)
Furthermore, you get a link on your registered mobile number, which may be clicked to reveal the credit card application status during this time. Thus, due to improved digitisation, checking your application status has become pretty easy.
Step 2: A dedicated executive thoroughly inspects your application
All submitted documents undergo detailed scrutiny at this stage. A senior executive is entrusted with the responsibility of cross-checking each minute detail. If required, this employee may call you to conduct another round of on-call verification. Additionally, in this phase, the credit card company verifies your present and past employment details and analyses your spending pattern to decide whether your profile is fit for credit card approval. Nevertheless, many institutions prefer checking a credit score first, even before checking their current income.
Moreover, in some cases, there can be a video KYC verification as well. Once the formalities get over, you move on to the next stage of the credit card application process.
Step 3: The lender issues a credit card accompanying the user’s agreement
Once the verification is through and you emerge eligible, the financial institution notifies you through all your registered contact channels. After that, you need to complete the remaining formalities, and that’s it, you become a credit card owner.
Instant credit cards these days get issued virtually, i.e., as soon as the fourth step gets over, you receive a digitised version of the card, which may be utilised right away.
However, you are set to receive a physical credit card via postal service and a manual later on. This accompanying document sums up the terms and conditions of credit card usage, which must be strictly followed to avoid penalties.
So, this is an overview of how a credit card application process works and what you need to do and expect during this process.
Check how to know whether you are pre-qualified for a credit card
Pre-qualification means that a credit card company has already allotted one payment card for you per your existing account activities. Now, with this type of credit card, you don’t need to go through any hassle, meet the eligibility, etc. All you have to do is apply for it and submit the required papers. You will receive an instant credit card and all its details once it is approved.
Factors to consider while selecting a credit card
As numerous credit card options are available online, it is not uncommon to get swayed away. Therefore, you need to keep a few pointers in mind before applying for a credit card –
Use and type of credit card
The first thing you need to consider is your card usage and which sub-type will suit it. For instance, if you shop heavily online, opting for a card like the ICICI Bank Amazon Pay Credit Card that offers great discounts and cashbacks is ideal.
Interest rate and additional charges
The next point to remember here is the interest rate and additional charges. Since these costs can amplify your total outstanding, you need to consider and compare them well before moving ahead.
Another crucial point is the availability of EMI options. Since it can help you manage your debt better, in case you need it, checking for this facility is crucial.
Being clear about your credit card application status and its intricacies is imperative to ensure there are no mistakes and delays in the process. Moreover, being an informed applicant, you will make better decisions and avoid facing financial difficulties going forward. Look for preapproved offers you may be eligible for, and maybe you could have an instant credit card waiting for you as well.