How to Apply for a Credit Card Easily and Successfully
Credit cards are one of the most used financial instruments in India today. With over 102 million issued last year, it is clear that a large number of Indians find them useful. If you, too, are looking to avail yourself of the many benefits a credit card offers, then you should first learn the proper steps to getting one. The process of credit card application can sometimes be an overwhelming one. So, here are some ways to go about it successfully.
Understanding the Basics of Credit Card Application
To understand the basics of a credit card application, you need to know that the term ‘credit card application’ usually refers to the complete process of application and approval of a credit card. The first step in this process is an inquiry into your credit history. Once you pass this initial check, the issuing authority (usually a bank) checks your current income and creditworthiness.
If you are approved, then the issuing authority provides you with some options to choose from. These options can include a travel rewards card or even a Rupay credit card. You are free to choose one depending on your spending habits and financial needs.
Why Choose a Rupay Credit Card?
Among the different types of credit cards is a Rupay Credit Card, which is a credit card issued under a government-backed initiative. It is headed by the National Payments Corporation of India (NPCI). This type of credit card is a budget alternative to premium credit cards since it has lower interest rates.
As a result, many government and privatised banks offer these co-branded credit cards to those who wish to limit themselves to domestic purchases in exchange for certain perks like cashbacks, insurance coverage, and reward points.
However, if your decision to credit card apply is not solely for domestic purposes, then there are other types of credit cards you can choose from.
Steps to Apply for a Credit Card
Before you apply for a credit card, you should know the different steps involved in the process.
● Assess Eligibility
You can only apply for a credit card if you meet certain eligibility criteria such as age, income, and credit score. You need to be above 18 years of age (i.e., a legal adult), have a proven stable income, and have a credit score above 600.
● Choose the Right Credit Card
Once you are confident that you meet all the eligibility criteria, it is time to choose the right credit card for your needs. So, before choosing a credit card, you should first review your financial status to understand which type of card best suits your needs.
● Prepare Documentation
After choosing the right type of credit card, you should begin collating your documents for the credit card apply process. These may include government photo-ID proofs (Aadhaar Card, Voter card, and PAN card) or even address and income proofs. Also, don’t forget to have a recent passport-sized photo to submit with the application form.
● Apply Online or Offline
If you wish to skip the paperwork and tedious documentation, then you can also choose to credit card online. Most banks nowadays offer this facility. This means you no longer need to physically visit your nearest branch for a credit card application.
● Await Approval and Card Dispatch
After you have submitted your credit card application (whether online or offline), all you need to do is wait for the bank’s approval. The bank usually conducts a final credit check, and if passed, approves your credit card. This card is then delivered to your doorstep.
Tips for a Successful Application
The process of credit card application is quite simple and straightforward. Whether you are using a Rupay credit card or any other type of credit card, here are some helpful tips.
- Always pay off credit card debts in advance.
- Try not to use up 100% of your credit limit, that is, try to keep the credit utilisation low.
- Pay all EMIs on time. This can help you increase your credit score.
- Try not to apply for credit cards at different banks. This will only further reduce your CIBIL score.
- If you are new to using credit cards, then it is recommended that you apply for a standard card, which is devoid of additional perks.
Key Takeaway
Now that you are aware of all the ways in which you can apply for a credit card, you are free to choose the credit card that is best tailored to your needs.
