How Long does a Credit Card Application Take?

Most credit card applications take about 10-15 minutes to complete but how long does it take to actually get your credit card? Let’s explore how long it takes and why…

The credit card application process begins with filling out an application, which can be done online, in person, or over the phone.

1. Online Applications: This is the quickest way to apply for a credit card and generally takes about 10-15 minutes to complete. You will need to provide personal details such as your name, address, income, and employment information.
2. In-Person or Phone Applications: These methods may take longer due to the need for direct interaction with a representative and you would need to bring in or send in copies of your documents. The representative will guide you through the application process, which might take anywhere from 20 minutes to an hour, depending on the complexity of your financial situation.

Initial Assessment

Once you submit your application, the lender performs an initial assessment.

1. Instant Conditional Approval: Some credit card providers provide instant approval within 60 seconds if you meet all the basic eligibility criteria but this initial approval is conditional and based on the preliminary information you provided. Assuming everything checks out you should get a final approval.
2. Detailed Review: In most cases the lender will still need to conduct a more thorough review. This involves checking your credit history, verifying your income, and possibly requesting additional documentation. This detailed review can take anywhere from a few hours to several days.

Factors Influencing Approval Time

Several factors can affect how quickly your application is processed:

1. Completeness of Application: Ensure that all required fields are filled out correctly and that you provide all necessary documents. Missing or incorrect information can delay the process significantly.
2. Credit History: Lenders will review your credit report to assess your creditworthiness. A positive credit history can expedite the approval process, while any issues or discrepancies might require further investigation.
3. Income Verification: Your income and employment details need to be verified. If the lender requires additional documentation, such as recent pay slips or bank statements, this can add to the processing time.
4. Volume of Applications: During peak periods, such as holidays or promotional events, lenders may receive a higher volume of applications, which can slow down processing times.

Receiving Your Credit Card

After your application is approved, the credit card needs to be printed and sent to you.

1. Credit card Printing and Dispatch: This step usually takes a few days. Once printed, your card is dispatched via postal mail.
2. Postal Delivery: Delivery times can vary based on your location. Typically, you should expect to receive your card within 5-10 business days.
3. Card Activation: When you receive your card, it will come with instructions on how to activate it. Activation can usually be done through online banking, a mobile app, or over the phone.

This means the whole process from applying for a credit card to go getting your physical credit card can take between 10 to 21 days depending on your location and credit card issuer. People in rural areas are likely to wait longer to receive their card.

Delays and Follow-Ups

If you haven’t received any communication regarding your application within a reasonable timeframe, typically within a month, it’s advisable to follow up with the lender. Common reasons for delays include:

1. High Volume of Applications: During busy periods, the processing time can be longer due to the number of applications the lender is handling.
2. Detailed Credit Assessment: If your credit history is complex or if there are any issues that need to be resolved, the lender might take longer to complete their assessment.
3. Request for Additional Information: If the lender needs more information or documentation, they will contact you. Promptly providing the requested information can help speed up the process.

Tips for a Smooth Application

To ensure a smoother and faster application process, consider the following tips:

1. Prepare Documents in Advance: Have all necessary documents ready before you start your application. This includes proof of identity, proof of income, and proof of address.
2. Check Your Credit Report: Reviewing your credit report before applying can help you identify and address any issues that might delay your application. You can get a copy of your credit report for free.
3. Follow Instructions Carefully: Ensure that you fill out the application accurately and completely. Double-check all information before submitting.

Applying for a credit card in New Zealand can be straightforward if you are well-prepared and meet the eligibility criteria. Understanding the steps involved and the factors that can influence the timeline will help you manage your expectations and ensure a smoother experience.

For more information and tips to help you choose the best credit card in NZ, visit our website Credit Cards Compare.