One type of personal loan is a loan against a credit card. Applying for an immediate loan against your credit cards is simple if you use one. Unlike a personal loan, a loan against a credit card does not call for paperwork. A personal loan often requires a few supporting documents to prove your eligibility. But a loan against a credit cards is like a same-day cash loan.
People frequently mix cash withdrawals from credit cards and loans against credit cards. People often assume that the lender will raise the credit limit on the card. Thereafter, they can withdraw cash when they take out a loan against a credit card. But this is a false impression. Lenders give you a loan against your current credit card. The ideal alternative for individuals to get quick cash to handle urgent personal issues is a loan against a credit card. You turn to these loans when your credit card’s cash withdrawal cap is insufficient to cover your financial needs.
Additionally, cash withdrawals on your credit card have higher interest rates. However, lenders charge lower interest rates for loans against credit cards. Additionally, the loan is disbursed swiftly and without any paperwork.
You can receive the loan amount as a demand draft or as a direct account transfer. A loan against your credit card seems economically sensible. That is why a lot of people choose loans against credit cards. Credit card loans are also referred to as pre-approved loans or pre-qualified loans.
How To Apply For Loans Against Credit Cards?
Applying for a personal loan against a credit card is a simple process. You can request this credit line by going to the lender’s official website and submitting an online application. You must submit the application form and the required paperwork. The lender will transfer the loan amount to your account if it determines that the documents you presented are accurate.
You can apply for a personal loan against a credit card offline. Visit the lender’s branch that is closest to you. Ascertain that you have the necessary papers. After that, the lender’s representative will contact you and assist you in applying for a personal loan against a credit card.
Eligibility For This Credit Line
You may be able to take money against your credit card if you meet the requirements listed below-
- Lenders typically provide credit card loans to both current and new consumers. However, some lenders only make it available to existing customers.
- You must have a credit card account to be eligible for this loan.
- Additionally, you must have a solid credit history. Lenders will grant you a loan against your credit card if you have a solid record of repaying your debts. And also, a decent credit score is a must.
- This loan and top-up credit card loans are open to applicants with high and increased income levels.
- Your ability to upgrade your credit card from the silver to the gold category can raise your eligibility. This ability depends on your income level.
Documents Required For This Credit Line
You don’t need to present any paperwork to apply for this credit line. You need a credit card to apply for a loan against one. So, you give your lender all the necessary paperwork when you apply for a credit card. The lender may approve a loan against your credit card based on the documentation you have already given. Usually, a lender will ask for the following documents when you apply for a credit card:
- Any of your recent phone bill, electricity bill, driver’s licence, or passport as your address proof.
- Your passport, driver’s licence, voter ID card, or PAN card will be your identity proof.
- Several current passport-size photos.
- Pay slips from the previous three months for salaried workers.
- A duplicate office ID card for those who are paid.
- A certified copy of the most recent ITR and a copy of the PAN card must be submitted by self-employed people.
Conclusion
If you are a credit card holder and need to take an urgent loan then it is easy to apply to get a loan on your credit card. In this process you does not require documentation. But in personal loan it required some documentation to clarify your eligibility for your personal loan against credit card.