Money shouldn´t stop making your plans come true. Learn how personal loans can help you!
Credit Cards Canada Instant Approval Work
7 Sep 2019

How Do Credit Cards Canada Instant Approval Work?

Having the right credit card allows you to shop freely even when your wallet is empty as you gain additional benefits. Typically, you then have to top up the amount you owe the credit card company at the end of the month.  With this level of convenience, you might think that it takes long to get a credit card when you need a new one. As a matter of fact, this might be true for numerous cards offered by traditional financial institutions. However, with credit cards Canada instant approval, your application is approved almost instantly and you get a reply soon after making an application.

The Traditional Method of Applying For a Credit Card

Submitting a credit card application is just the first step towards your access to credit. However, this step goes beyond the simple exchange of personal and financial details. The financial institution offering the credit card takes a huge risk by giving you the money to use for shopping or other payments. This is why they take certain precautions such as verifying your capabilities to repay what you owe at the end of each month. As such you should give factual information that demonstrates your responsible behavior as a borrower.

Lenders ask for several details other than your personal information when they want to know if you are a capable borrower. Some of the other common things you might have to disclose as you apply for any credit card include:

  • Employment status

This includes details about your current job and the amount of time you have been working for your current employer. These details are used to prove that you have a stable source of funds to pay the credit card debt that accrues on a monthly basis.

  • Monthly income

Employment is not the only source of income that you might have. If you have additional income sources they help to show your capability to afford the amount of credit you will be extended each month. You may also not be employed but have a business as your main source of income. The credit card provider will require details that prove your generation of income from the said business. If you are retired, you might have income coming in in form of profits from shares, retirement benefits and other numerous sources. You should break them down and offer a list that also details how stable they are.

  • Details of your other credit cards

Your lender will need to know how financially liable you will be at the end of each month. Since other credit card debts will need to be paid, you should be able to afford their repayment and have enough money left to pay off the debt for the new credit card you will get. As such, you have to disclose to the financial institution whether you have other credit cards and the type of cards they are.

  • Details of your other current debts

Loans such as mortgage and any other forms also make you liable financially at the end of each month. Hence, your lender has to know the amount of money you need to pay to other lenders to ensure that you take on a manageable financial burden. It is their responsibility to ensure that they give you a credit card whose monthly debt you can manage to clear seamlessly even when you have other financial commitments.

How to get Credit Cards Instant Approval

Modern credit card providers recognize the need for swift approvals and they do their best to give you a fast response. When you make an online credit card application, they are able to access the national credit bureau and determine if you qualify to get the card. If your application has any faults, you may have to wait for long periods as your request gets processed. Your documents are safe due to 128-bit encryption and you can also track the application process easily since it is online. Fast approval allows you to be calm because you know the verdict straightaway rather than waiting on your mail for a response.

The application process simply involves filling a form on the credit card provider’s website. To ensure that you have better eligibility and get the best terms, do the following:

  • Compare options

You can easily get numerous Credit cards Canada instant approval providers but the instant approval should never lure you to avoid doing a comprehensive research. You should consider the aspects below to be able to choose the best financial institutions:

  • Fees. The common ones include annual, balance transfer, foreign transaction, returned and late repayment fees.
  • Rates. Cash advances, APR purchases, and balance transfers differ between varying credit card providers.
  • Features. Signup bonuses, reward programs, purchase protection, and complimentary insurance all vary between different credit card providers.
  • Check the requirements for eligibility

You will only get a loan after you meet the requirements laid down by the credit card provider. You can expect to be checked in terms of the following aspects:

  • Great credit history. Most credit card providers will approve your application instantly if you do not have a history of defaults.
  • Residential status. Some credit card providers require that you be a permanent resident of Canada to qualify.
  • Age. You have to be 18 years or older to qualify for the credit card.
  • Income status. The financial institutions require that you have a certain level of income to be able to sustain the card. However, you can still get a low-income credit card.
  • Ensure correctness of the documents and financial information

For credit cards Canada instant approval, you need to provide several personal details and attach the appropriate documents. Credit cards Canada instant approval providers may ask you for the following personal details:

  • Proof of identity. You can use your driver’s license, birth certificate or even a medical insurance card to verify your existence.
  • Personal information. This includes your name, contact information and residential address.
  • Employment and income details. Your proof of employment and salary can include your employer’s details and recent payslips. If you have a business or are self-employed, the credit card provider will request for your accountant’s details. If you are retired, you will need to provide proof of income such as assets or other payments.
  • Complete the Application

Once you are sure that you are eligible and that you have provided correct information and documents, you can choose your desired type of credit card and proceed with the application. However, it is important to note that each credit card provider will have their own unique requirements so always confirm from individual providers. After processing your application, the provider will notify you of your approval or rejection and if the credit card provider needs to conduct further scrutiny on your application.

How Instant Credit Card Approval Works when you have Bad Credit

When you apply for a credit card, you automatically give the respective financial institution authority to review your credit history. They will check your past debt details from any Canadian credit reporting agency. The agency will then give a report which has your credit score and if the score is poor your credit card application might be rejected. If your approval is rejected, seek to establish the reason why it was rejected before you can make another application. Applying for numerous credit cards at once and getting rejected can hurt your credit score. This will in turn bar you from numerous other credit opportunities including loans and credit cards in future.

If you find out that your credit rating is poor, you should try to raise the score before you make another credit card application. There are numerous steps you can implement to improve your credit rating including paying off your current debts on time. Then, after a few months, your credit rating should have been repaired and you could make another application. Alternatively, you could try to apply for a credit card without a credit check or one for people with bad credit.

Activating your New Credit Card

If your Credit cards Canada instant approval application was successful, you may have to wait for up to 10 days if you choose to get the card via regular mail. Some providers also offer other alternatives including the use of their official apps. Upon receiving the card, you will need to activate it before you can start using it to make payments. Also, activation might be important when your current credit card expires and you make an application to have it renewed. When you receive the new credit card, call the toll- free number at the back for activation.

Credit cards Canada instant approval allow you to have an easier and more pleasant time when getting a new credit card. However, not every credit card provider offers instant approvals and you can hardly know this from the overall outlook of their website. Bonsai Finance offers you a web search tool that you can use to narrow down your search for the best Credit cards Canada instant approval. Check out our services today to experience a seamless credit card application process as well as additional tips on how to secure your financial future.

Here are some other interesting articles from our website:
Pros and Cons of Instant Approval Credit Cards
Instant Approval Credit Cards Canada | Apply Now!
Instant Approval Credit Cards vs Guaranteed Approval Cards