This is what a business credit card application checklist looks like

Through BR correspondent Feb 17 2020

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DURBAN – Taking the time to understand what banks are looking for when they approve a business credit card application or limit increase can help small businesses increase their chances of approval.

Valentine Jingura, Pricing Manager for FNB Business, said credit plays an important role in helping SMEs start, run, grow and sustain their businesses.

There are some common criteria that financial institutions and banks consider before granting a business credit card increase / limit:

Existing Bank Account – Often the first consideration for the applicant is to have an existing business bank account in good standing before a credit card can be offered.

Monthly payments – banks want to determine if the applicant will be able to meet the minimum monthly payments, if they use the entire amount allocated on the credit card.

Financial Documents – Newly started businesses that do not have adequate financial statements may be required to provide additional business information, such as cash flow projections and estimated monthly expenses. This allows the bank to make an informed decision, based on the information available.

Credit Behavior – Although there is no credit bureau for businesses in South Africa, lenders use all the information at their disposal to understand how the business manages its financial affairs and meets its obligations to them. creditors. A good record always works in favor of the company.

Additionally, as a sole proprietor, mismanagement of your personal financial affairs can impact the bank’s final decision. Part of the reason is that a sole proprietorship is not recognized as an independent legal entity and the owner is legally responsible for all debts of the business.

Directors associated with the business must also have good credit records.

Surety – depending on the legal structure of the business and its credit profile, directors of the business may be required to sign a surety for the payment of credit card debt – in case the business fails. would not meet its obligations. This is often part of banks’ risk mitigation processes.

“A business credit card is one of several unsecured credit products offered by banks to help businesses manage day-to-day operations, working capital and cash flow shortages. Before applying, make sure you choose the right form of credit for the business needs, ”Jingura concluded.


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How do I track the status of my credit card application?

NEW DELHI: These days it’s very easy to get a credit card. If you have a bank account, there is a one hundred percent chance that the bank or its credit card representatives will contact you to offer you one. In fact, you wouldn’t have to go to the bank to complete the paperwork. In many cases, the bank representative would come to your home with the application forms.
Likewise, tracking the status of your credit card application is also very easy. Although banks have different ways of tracking the status of credit card application, almost all of them offer the ability to check the status of the card online.
To track the status of your credit card application, you must have the information mentioned below:
  • Application number
  • PAN card number
  • Cell number
  • Date of Birth

The steps for tracking the status of your credit card application online are as follows:
Step 1: Visit the official website of the bank where you applied for the credit card.
2nd step: Go to the “Credit Card” section.
Step 3: Click on the “Track Application” option or a related item.
Step 4: you will be redirected to a new window where you will need to enter the required information such as application number, PAN, etc.
Step 5: After entering all the details, click on the “Send” option. The status of your credit card application will be displayed on the screen.
Other than that, you can personally visit the bank branch or call to track the status of your credit card application.
Here are some of the most frequently asked questions about credit cards:

  1. What is a credit card?
    It is a card that allows you to borrow money from a bank to make purchases.
  2. Can I apply for a credit card online?
    Yes, you can apply for a credit card online by visiting the bank’s official website. In addition, you can visit the nearest branch.
  3. What is the credit card limit?
    The credit limit is the maximum amount that has been granted to the credit card user during a statement cycle.
  4. Is there an annual charge for a credit card?
    Yes, there is an annual charge for a credit card. But many banks waive fees for many of their customers based on usage and credit rating.

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