Applying For A Credit Card? Here’s A Quick Guide To Help You

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A credit card is one of the most convenient ways to manage your purchases. Many credit cards available in India with distinct features, which can easily confuse you. So, how do you choose which card to apply for? Here’s a quick guide on the types of credit cards available in the market and their features.

The types of cards available in the market are:

  • Lifestyle credit cards
  • Rewards credit cards
  • Shopping credit card
  • Travel and fuel credit card
  • Business credit card
  • Professional credit card

Each credit card comes with its unique set of features and discounts. Take an in-depth look at the offers available on each type of card, and whether they suit your everyday needs.

Annual Fee and Other Charges

The annual fee and the renewal fee are the first things you must look at when choosing your credit card. Look for a card which charges you the lowest maintenance and processing fees. Many cards may ask you for an annual fee, while others won’t. Some people choose to pay a yearly fee to have a premium card with a generous rewards points programme. Some other charges that are usually levied on credit cards in India are:

  • Late payment fees
  • Cash advance fees
  • GST
  • Foreign currency markup fees
  • Cash withdrawal charges
  • Mobile alert charges
  • Balance enquiry charges
  • Duplicate statement charges
  • Interest rate on the balance amount

 Credit Limit

Your credit limit is the amount you can spend through your credit card. This is a fixed amount set by the bank. Before you choose your credit card, reach out to your bank and ask for the card’s maximum credit limit that you will be allowed according to your salary or income. If you don’t have a credit history, then your card will have a low limit initially. Once you get other cards and your credit history remains positive, your credit limit will eventually increase.

Terms and Conditions

Always choose a credit card only after reading the fine print. If the credit card issuer is trustworthy, they will state their rates and fees in an easy-to-read format rather than using jargons and complex terminologies. Go through the Annual Percentage Rate (APR) which is the interest rate levied by the card issuer upon delay in payments. Some credit card companies and banks may offer an introductory APR to lure its customers and later switch to their standard APR.

Applying for a Credit Card

Once you choose your credit card, you need to fill out an application with a credit card company or bank. Applying for a card with the bank you already have an account with maybe the easiest. You can apply for a credit card online, call them or visit the nearest bank branch.

The application will ask for your basic details such as your name, address, email and phone number. They might also ask for your employment status to measure your creditworthiness. You can still get a credit card even if you don’t have a job, but you will have to show some legible income proof.

When you submit your credit card application, the card issuer will look at your credit history. If you do not have any credit history, then the credit card issuer will create a file for you with one of the credit bureaus. You will receive your card upon approval and after meeting other terms and conditions.

Must Read: Tips To Keep Your Cards Safe While Shopping Online

Credit cards give you the freedom of funding your needs without any inhibitions or immediate financial burdens. Keep the above-mentioned points in your mind and apply for a credit card meeting your needs today.

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