How do banks issue credit cards?

Banks issue credit cards through a structured process that includes application submission, credit evaluation, approval, card production, and activation. Once a customer applies, the bank assesses their financial background, assigns a credit limit based on creditworthiness, and delivers the card for activation.

What factors determine if I qualify for a credit card?

Banks consider several factors before approving a credit card application. These include credit score, income level, employment status, and existing debts. Some banks also use alternative underwriting methods, such as evaluating utility payments or banking history, for applicants with limited credit history.

What is the 2/3/4 rule for credit cards?

The 2/3/4 rule is an informal guideline used by some credit card issuers to limit approvals. It generally means an applicant may be approved for up to two credit cards within 30 days, three within 90 days, and four within 24 months. Different banks may have their own variations of this rule.

Can a bank issue me a credit card without my consent?

No, banks are not allowed to issue a credit card without a customer's explicit consent. Regulatory bodies ensure that banks obtain clear authorization before processing a new credit card application or upgrading an existing one.