Instant Approval Credit Cards: Here’s All You Need To Know

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With the advent of the internet and technological advances, applying for a credit card has become easy and quick. Your days of standing in long queues to apply for a credit card and waiting for days to get approval are long gone. Banks have adapted to the new change and come up with instant approval credit cards to give customers the luxury of getting instant approval for a credit card. 

What Are Instant Approval Credit Cards?

Instant approval credit cards or guaranteed approval cards are a financial tool offered by various banks and credit card companies in India. When you apply for a credit card, you do not have to wait for almost two weeks to get approval. If everything is in proper order, your application will get approved within just hours of submission. 

In the case of traditional credit cards, banks usually take from 10 to 15 days to review, process, and approve your credit card application. Contrary to the conventional process, you do not have to wait for days as the approval process is almost instant. 

But, How Does it Work, And What Information is Required To Apply For a Credit Card?

When you apply for an instant approval credit card, the process of reviewing and approval is fast-tracked by your bank to provide a quick response. First, your bank will run a rapid credit check based on your credit history. The criteria to determine your creditworthiness are based on financial background, income, credit score, etc. 

While applying for an instant approval credit card, you will need to provide the following information: 

  • Identify proof: You will have to submit a document providing your identity as an Indian. You will have to provide your Aadhaar Card, PAN Card, Passport, or Driving License.
  • Personal details: Your bank will require your details, such as your full name, residential address, work address, email address, contact number, etc. 
  • Income proof: You will need to submit your income certificate and employment certificate. It certifies that you can repay your credit card bills on time and in full. 
  • Balance transfer history: In case you have chosen to transfer your outstanding balance, you will need to provide a detail of your balance transfer history with other banks in India. 

The Process Of Applying For Instant Approval Credit Cards

While applying for an instant approval credit card, you will need to convince your bank that you meet all their requirements and hence, are eligible to qualify for instant approval. 

Here are the factors affecting your instant approval credit card eligibility: 

  • Credit score

Your credit score is one of the essential factors affecting your eligibility. Your bank determines your creditworthiness based on your credit history and credit behavior. If you wish to secure an instant approval credit card that comes with maximum benefits, you must maintain a minimum credit score of 750. 

  • Credit utilization 

The credit utilization ratio is a percentage of the amount used against the credit limit assigned to you. If your credit utilization ratio is high, it indicates that you are a credit-hungry person. In such cases, your application for a credit card will not get approved. You must maintain your credit utilization ratio below 40%.

  • Multiple credit card application

Every time you apply for a credit card or a loan, it reflects on your credit profile and remains there for the lenders to see. If your issuing bank finds out that you have applied for multiple credit cards, your application for an instant approval credit card will get declined due to the risks involved. 

  • Income 

Your credit card eligibility also depends on your level of income. The higher your income, the greater your chances of approval. The income requirement varies across banks. So, you must check your bank’s requirements and ensure to earn a minimum based on your bank’s policy.

It is worth noting that individuals with below  700 credit card scores are not eligible for instant approval credit cards. Your credit score has to be at least 750 or above to get approval. 

So, if you meet the eligibility requirement of your bank, you can apply for a  credit card online. You can visit your bank’s website, choose your credit card, and click Apply. Fill in your application form and submit the relevant documents. Your bank will check your review, process, and approve your credit card within hours. Your approval highly depends on your income and credit score.

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Rana Kapoor: The banker who believed in Inclusive and Social Banking

Rana Kapoor’s YES Global Institute developed a three-pronged approach to enhance the Indian skill ecosystem

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