Introduction – for Applying Credit Card
In India, credit cards have rapidly gained popularity as an efficient financial tool because of their many advantages. Not only do they allow flexibility with spending, but also help users to build up a favourable credit history with responsible use.
However, before you apply for a credit card in India, there are a few things that you need to know. These are as follows –
Eligibility criteria for Applying Credit Card
You should know the eligibility criteria for a credit card before you apply for the same. If you do not satisfy the eligibility conditions, your application will possibly be rejected. The basic eligibility criteria for credit cards are given below –
- Applicants need to maintain a credit score of 750 and above.
- Age of applicants should be within 25 – 65 years.
- They should be residents of India.
- Applicants should also not have any payment delinquency.
Apart from the ones mentioned above, lending institutions may specify other requirements too. So, check with your card issuer before you apply for credit card to avoid any confusion or delay.
Application procedure and documents required
You can apply for a credit card via either offline or online mode. The steps to apply online for a credit card are given below –
- Step 1: Visit your lending institution’s official website.
- Step 2: Go to the credit card section and select the card that meets your spending requirements.
- Step 3: After you have selected the card, check the eligibility criteria to see that you meet all the requirements.
- Step 4: Click on the online application form and enter the required details.
- Step 5: Check the information that you have provided to make sure there are no errors and submit the application form with the required documents.
The list of documents that you need to submit along with the credit card application form is as follows –
- KYC documents which include Aadhaar card, PAN card, Voter ID, driving license, passport, etc.
- Proof of income, such as the latest salary slips, income tax return, Form 16, etc.
Lending institutions may ask for any other relevant documents apart from the ones mentioned above. Make sure to submit the correct documents so that your application is processed quickly.
Consequently, you should know the ways to check your credit card application status.
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Before you apply for a credit card, know the associated fees and charge as well. Some of them include –
- Joining fees – When individuals first opt for a credit card, they need to pay a certain amount as joining fees.
- Annual fees – Financial institutions often levy a yearly fee on credit card users known as annual fees.
- Late payment fee – It is what you need to pay if you miss the due date.
Alongside, if you fail to pay the credit card balance in full, lending institutions will charge interest on the outstanding amount.
Types of credit card
There are different types of credit cards available to complement various financing needs of Individuals. Credit cards come with reward programmes where you can earn points on every purchase.
You can redeem these reward points to avail discounts and cash backs, and save substantially.
Hence, you should know how to choose the right credit card for yourself that best suits your spending needs and lifestyles.
You should also know the additional features offered by credit cards. For instance, supercards allow users to withdraw cash from an ATM without charging any interest for up to 50 days.
The card issuer also provides pre-approved offers for a quick and hassle-free loan application processing. Besides credit cards, such offers can be availed on other financial products like personal loans and business loans.
You can check your pre-approved offer by entering your name and contact information. Additionally, when you apply for a credit card, you should request a credit limit that is well within your repayment capacity.
Nevertheless, make sure that your credit utilisation ratio is within 30 – 40% of the total revolving credit available to make the most of your credit card utilities.