Must Know: Credit Card Application And Approval Process

By Sanesh Mathew | May 30, 2019

In this article, we’ll discuss the application process, and approvals, time taken for application approvals and common reasons for rejections.

Must Know: Credit Card Application And Approval Process

We cannot help but agree that Credit Cards have become an integral part of our lives. Be it to make those big purchases or just to tide over broke days, Credit Cards are indeed a boon. Although it is easy to get a Credit Card today, it has come to our notice that quite a few applicants have their fair share of doubt and concern, mainly regarding their application getting approved.

If you are one among them, then this article is for you. In this article, we’ll discuss the application process, and approvals, time taken for application approvals and common reasons for rejections. Shall we begin?

Additional Reading: Tips To Get Your Loan And Credit Card Application Accepted

How to apply for a Credit Card

There are different ways to apply for a Credit Card. You can either apply online on your preferred bank’s website, or if you’re looking to get a card from your existing bank, you can apply easily via netbanking. You can also apply for a card by walking into the nearest branch of your preferred bank.

However, if you want to compare cards from different banks that you may be eligible for before you apply, we’d suggest that you visit us here. With BankBazaar, all you need to do is check your eligibility, check out the features of cards that are available to you, and apply for the one that most appeals to you. You can also apply for a Credit Card using just your mobile phone via the BankBazaar mobile app. Simple, isn’t it? You can start your application process here.

Important documents

To complete your Credit Card application, you’ll be required to provide an identity proof, address proof, PAN card copy and income proof.

Identity proof – Aadhaar, passport, driving licence, ration card, voter ID, etc.

Address proof – Aadhaar, passport, driving licence, rental agreement, utility bills, etc.

Income proof/Employment proof – Bank statements, salary slips, Form 16, etc.

With BankBazaar, you can enjoy a completely paperless application process, i.e. no need to submit physical documents unless the lender absolutely requires it. Try it now.

The approval process

On completion of your application and submission of all the required documents, banks will then check the authenticity of the documents. Bank reps may also call the references (usually you’ll be asked to provide two references) you’ve mentioned to verify your details.

Another important factor that plays a vital role in the approval process is your Credit Score. Your Credit Score plays an important part in deciding whether your application gets accepted or rejected. It is an indicator of your creditworthiness. Lender would want to be extra sure that you’ll be able to make your bill payments without fail. A good Credit Score of over 750+ shows you as a responsible credit user, thereby increasing the chances of getting your Credit Card application approved.

Post retrieving your Credit Score, the bank will a final review of your financial profile and submitted documents before accepting or rejecting your application. If your application is approved, the bank will then set a credit limit for you depending on your income, existing debts and Credit Score. Post that, you’ll be intimated about the status of your application and your Credit Card, along with necessary documentation, will be dispatched to your mailing address.

Additional Reading: What Are The Chances Of Your Credit Card Approval?

If your application is rejected, the bank will notify you of the same. In most cases, the reason for rejection isn’t disclosed, but it can depend on anyone of the factors mentioned below.

Common reasons for rejection

Your Credit Card application could have been rejected owing to a bad credit score, low income, errors in the application, etc. Here are the most common reasons for rejection:

  • Your Credit Score is not up to mark. Not to worry, though! Proper financial discipline will help you rebuild your score within a few months. Once your score is up to mark, you can re-apply for the card. Haven’t checked your Credit Score lately? Check now.
  • Your income is lower than the required income for the card. Want to be certain if you’re eligible for a card? Check your eligibility via BankBazaar. It’s FREE.
  • You have too much outstanding on your existing card/s. This gives the lender the impression that you won’t be able to handle more debt, and hence, will default on repayments.
  • You made errors in your application. Incomplete application forms and multiple errors in the form can lead to your application getting rejected. Review your application for completeness and accuracy.
  • You have submitted applications for multiple Credit Cards at the same time. Not only does this diminish your chances of getting a card, it also increases the number of hard enquiries, leading to a decrease in your Credit Score.

The above-mentioned are the most common reasons for Credit Card application rejection. However, there may also be other factors that led to your application getting rejected.

Additional Reading: Top 10 Reasons For Credit Card Application Rejection

Final thoughts…

Getting a Credit Card is easy these days. We’d suggest that you be extra-cautious while filling the application form to avoid errors, maintain a good Credit Score, and do not apply for multiple cards at the same time.

Additional Reading: What Is A Credit Freeze? Things You Should Know Before Opting For One

Looking to get a Credit Card? Check your eligibility, pick a card from the lot hand-picked for you, and get it approved in just 24 hours. Get started by clicking the link below.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.
Category: Credit Cards Credit score
Sanesh Mathew

About Sanesh Mathew

A talkative sleepyhead, Sanesh, enjoys watching horror movies, listening to music, reading all things related to personal finance and wandering aimlessly (walking meditation, he calls it!). He refers to himself as a 'simple human being with a rather chaotic mind'.

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