Step-by-Step Guide to Error-Free Credit Card Application Online
The process of applying for credit cards online has eliminated the need to go to a branch, queue, or fill out piles of documents. Nowadays, the whole procedure, including the comparison of alternatives to posting of documents, happens online on the screen in a few minutes.
That said, small errors during the application process can lead to unnecessary rejections and a temporary dip in your Credit Information Bureau (India) Limited (CIBIL) score. This guide will take you through all the steps to make sure that your application for credit cards online goes smoothly the first time.
1. Check Your Eligibility First
Always ensure that you satisfy the minimum eligibility requirements before you begin filling out any form. Lenders assess several parameters before approving credit cards online.
A score of less than 750 in CIBIL does not necessarily mean rejection, but a stronger score will give you a higher chance of being approved and getting a higher credit limit.
2. Gather Your Documents in Advance
Preparing the documents required for a credit card application before you get to the online form helps save time and avoid errors in the middle of the online application. Below is a standard checklist for applicants.
For self-employed individuals, an Income Tax Return (ITR) filing and certified financial documents are additionally required. A PAN card is mandatory across all applicant types.
3. Fill Out the Application Form Accurately
This is the step where most applications go wrong. When filling out your credit cards online application form, accuracy is non-negotiable.
Follow these practices:
● Enter your name as it appears on your PAN card; anything even slightly different can lead to delays in verification.
● Check your mobile number and e-mail address entered properly. They are required to verify through One-Time Password (OTP) and to communicate.
● Be honest about your income. Understating or overstating income are both red flags for lenders.
● Always mention existing loans or credit cards because lenders will check this by themselves via credit bureaus.
● Review all fields before submitting. The preview screen of the form helps reveal mistakes before final submission.
4. Submit Documents and Complete Verification
Once you submit your form, you will be asked to provide scanned copies of the documents. Ensure that:
● Scans are sharp and display no cut-off edges or blurred images.
● The size of files does not exceed the upload restrictions in the portal.
● All documents are valid and within their expiry dates.
Certain lenders might require a Video Know Your Customer (Video KYC) authentication process instead of physical document submission. It is a live video call in which an agent verifies your identity using the documents submitted. This is best done in a well-lit place with a stable internet connection.
5. Track Your Application Status
Once submitted, most lenders provide a reference number and an online tracking link. Use your application reference number to log in to the portal or mobile application of the lender and see updates to your status in real-time.
Most institutions are now providing in-principle approval within minutes, particularly to applicants with good credit history. Physical delivery of cards usually requires 7-10 working days after approval. Some lenders give you the virtual card number once you have been approved to transact online; thus, you do not need to wait until the card is delivered.
Final Thoughts
The process of applying for credit cards online is simple when you go about it with the right preparation. All you need to do is meet the eligibility criteria, make the right choice of card that fits your financial needs, and present proper documentation to prevent rejection. Some due diligence will save you a lot of time in the long run and secure your credit profile.
FAQs
1. What CIBIL score is needed to get credit cards online approved?
Most lenders prefer a CIBIL score of 750 and above. An increased score will also enhance your credit limit and lower your interest rate.
2. Why was my credit card application rejected despite meeting the eligibility criteria?
Some of the typical causes include a high Debt-to-Income (DTI) ratio, wrong form entries or multiple applications being applied simultaneously. Look at your credit report and reapply after 3-6 months.
3. Can self-employed individuals apply for credit cards online?
Yes, self-employed individuals can apply for credit cards online. Instead of using salary slips, lenders look at your income based on ITR filings and bank statements, meaning that updating your financials before you apply will boost your chances of being approved.
Disclaimer: This article is published in association with Kotak Bank and not created by TNM Editorial.