For a newcomer, the world of credit cards could appear complicated. Various institutions offer credit cards, each with unique features and advantages. Since everyone has various financial needs, there isn’t a single card that meets the description of “best credit card.” Your ideal credit card is the one that most closely matches your spending style.
Obtaining a credit card is a significant accomplishment, but one must also be cautious about reading the terms and restrictions that go along with it. There is no denying that a credit card has a plethora of advantages, but the improper use of one can seriously harm your finances and perhaps put you in financial trouble.
- Know How Credit Cards Operate:
One can make purchases with a credit card from the bank and pay the balance later. You have been given a credit limit and are not permitted to exceed it. Your salary, credit history, job security, and many other factors are taken into account when determining your credit limit.
Credit cards provide an interest-free period of 45 to 50 days. Therefore, you would avoid paying interest on your purchases if you paid off all of your credit card debt on time. Nevertheless, the interest-free period does not apply to cash advances (withdrawals). Banks provide you with the choice of making a minimum payment and rolling over the remainder of the bill if you are unable to pay the entire sum due on your credit card. This outstanding balance will be subject to daily finance charges (interest).
- How Do You Apply for a Credit Card?
It’s easy to apply for a credit card, but only once you’ve chosen the card you want to get. The following actions must be taken after you have compared your options and decided on the type of credit card you want to use:
- Access the bank’s official website.
- Under “Credit Cards,” select “Apply.”
- Enter your contact information, including your name, address, occupation, monthly income, and PIN code.
- Click “Check Eligibility” after choosing your desired credit card.
- You will be asked to continue with the application and provide information such as your name, email address, date of birth, and PAN if you meet all the credit card eligibility requirements necessary for the chosen card.
- After that, input your residential address and PIN.
- You will next be prompted to provide your employment information, including your company’s name, address, PIN code, and telephone number.
- Credit card eligibility
Depending on the credit card issuer, different credit card kinds have different qualifying requirements. But these are some fundamental requirements for eligibility:
- Individuals must be of legal age, which is 18 or older.
- They should have a consistent source of income, which could be either a salaried job or being self-employed.
- They must have excellent credit, preferably 750 or above.
- If you meet the aforementioned requirements, you have a good chance of having your credit card application approved.
But before you submit your credit card application, make sure you have the following paperwork on hand:
- Any document proving your identity that has been issued by the government, such as a passport, licence, voter ID, Aadhaar card or employment ID for public servants.
- Address verification can be provided by any document that includes the address, such as a lease agreement, bank statement, phone bill, water bill, electric bill, property tax receipt, or credit card bill.
- Birth certificate, secondary school transcript (grade 10), receipt from a life insurance policy, pension payment order, or any other form of identification containing the date of birth may be used as proof of age.
- Income proof includes the most recent three months’ worth of pay stubs or six months’ worth of salary account bank statements for salaried workers; the most recent one showing the income and other certified financial documentation proving the continuation of the business for self-employed businesspeople.
- How may a credit card be obtained?
Thanks to banking and financial companies, applying for and receiving a credit card is becoming increasingly simpler for people. There are several ways to accomplish it:
Apply on the web
- Visit the official website of the designated credit card issuer and complete the form there with all of your basic information, including your name, phone number, and address.
- One will be contacted by a bank representative who will walk you through the application process.
- A representative may come to you to collect and verify your documents after successfully accepting your application.
- Should I have a credit card?
Even though you don’t require one, buying one is a smart move for the following reasons:
- With a credit card, it is easier to establish credit. A poor credit history can have a variety of effects on your life. The most obvious one is that if you ever need to borrow money, you’ll have to work hard to get authorized by lenders. In several areas, it might even result in increased auto insurance premiums. In addition, it can result in you being turned down when applying to rent a house.
- According to security experts, credit cards are one of the most secure forms of payment. If a fraudster uses your credit card to make unauthorized purchases, you can have a new card and the charges reversed by getting in touch with the card’s provider. Most card providers even offer zero-liability policies, which means you won’t be held responsible for any fraudulent payments.
- A large number of the best credit cards include cash back, travel points, or other kinds of incentive. By doing this, you may maximize the return on your financial investment.
- Conclusion
Credit cards guarantee that you have access to cash without sacrificing your purchasing power. As a result, they can be an excellent tool for making fast offline and online payments.
Using a credit card will be simple as long as you exercise financial restraint and make your payments on time.