alexa

Search in Indianmoney's WealthPedia

Home Articles 4 Things to Consider While Applying for a Credit Card

4 Things to Consider While Applying for a Credit Card

IndianMoney.com Research Team | Posted On Thursday, June 06,2019, 06:23 PM

5.0 / 5 based on 1 User Reviews

4 Things to Consider While Applying for a Credit Card

 

 

What is a Credit Card?

 A credit card is a payment card issued by banks, that allows the user make payments for purchases and services availed by borrowing money from the bank.  A Credit card makes payments for goods and services really easy and provides additional benefits in the form of reward points, cashbacks and much more.

Many Indian and foreign banks offer credit cards. Different credit cards have different features and benefits linked to them. The most prominent credit cards have benefits in the form of flyer miles, dine-in discounts, rewards and cashbacks on shopping from selected outlets, discounts on entertainment and travel and so on.

Want to know more on Credit Card? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

See Also: Types Of Credit Cards

4 Things to Consider While Applying for a Credit Card

How to Apply for a Credit Card Online?

Nowadays, banks have transferred most of the banking services online, to help customers avail hassle-free services. Net banking has become an instant hit among customers as users can avail banking facilities on the go. One such service is applying for a new credit card.

In order to apply for a credit card online, you must fulfill basic eligibility criteria set by the banks. If you are an existing customer of the bank, then you can apply through the net banking account. If you wish to avail a credit card from some other bank, then visit the bank’s web portal and apply for a credit card by providing basic personal details like name, mobile number, income, address and so on. Once you have provided all the necessary information, submit your online credit card application. You will receive a call from the bank executive who will guide you through the process.

Listed below are some of the important factors you must consider before applying for a new credit card:

Check Your Credit Score:

This is the most important step while availing a credit card. Credit card applications are approved based on credit score. No banks and credit institutions will approve your credit application, if you do not have the requisite credit score.  Your credit score is a three-digit summary of creditworthiness and debt repayment abilities.

Your credit score assures the credit institution or bank that you can repay your loans and credit card bills in a timely manner. A credit score of 750 and above is considered ideal, for getting loans sanctioned. Credit card application of people with a low credit score is generally rejected by the credit card companies and banks. So, make sure to check your credit score, before applying for a credit card with the bank.

See Also: 5 Reasons To Use Credit Cards

Choose Your Credit Card Wisely:

You often receive calls from bank executives with requests to avail credit cards. Credit cards are great instruments in building your credit score, but these must be chosen carefully. Make sure to avail a credit card based on your needs and repayment capacity. Do not go for the first credit card issued by the bank, without knowing the terms and conditions. Make sure to avail a credit card that provides you with maximum benefits like rewards points, flyer miles, low-interest rates, cashbacks or low annual maintenance fees.

See Also: What is Credit card and Debit card?

Take the Help of the Experts:

It is always important to seek professional help before availing a credit card. There are many online aggregators that provide expert advice on the pros and cons of using a credit card. These experts also guide you on the process of availing a credit card and inform you on the best credit cards available in the market. It is important for first-time credit card applicants to seek professional help. You get guidance on the documentation, application and other formalities that are necessary in order to get a credit card.  If you want free financial advice on credit cards, contact IndianMoney.com.

Prepare Your Documents:

You must be prepared with all the necessary documents that are requested by the banks for the approval of your credit card. Generally, banks require the applicant to submit documents related to income, like last 3 months payslips and bank statements of the previous 6 months. Other necessary documents include proof of identity and proof of address. Preparing your documents in advance will help you get your credit card issued without any hassles.

You May Also Watch

Iframe Content

Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.

IndianMoney.com's complaint portal Iamcheated.com can help you resolve the issue. Just visit IamCheated.com and lodge your complaint. If you want to post a review on any company you can post it on Indianmoney.com review and complaint portal IamCheated.com.

Be Wise, Get Rich.

What is your Credit Score? Get FREE Credit Score in 1 Minute!

Get Start Now!
CIBIL Meter
Get It now!
Attention!

This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.