Credit cards offer a quick and convenient way to navigate a financial crunch. With these financial instruments, you can immediately pay for your regular purchases or unexpected expenses without dipping into your savings.
What’s best? You can apply for a credit card online, in just a few clicks. However, to have a seamless experience, it is best to know the process, eligibility criteria and documentation requirements beforehand. This way, you can manage and plan your card application better.
How to Apply for a Credit Card Online
Here are the steps you need to follow when you apply for a credit card online:
1. Visit the respective banks’ or card issuers’ website
2. Navigate to the 'Credit Cards' section and look for the 'Apply' button
3. If you fulfil the eligibility criteria, you can proceed with the application
4. Enter your basic information, including your name, PAN, email address, date of birth, residential address, and pincode
5. Provide the details of your employment, including the name and address of the company, pincode, and contact information
6. Verify your mobile number by entering the OTP sent to your phone to complete the application process
Once you complete these steps, the concerned representative may contact you to process your application further. However, remember that the process may vary across issuers. You can also contact the customer care team of the concerned issuer to clear your queries.
Document Requirements for a Credit Card Application
The paperwork requirements depend on the issuer you choose. Here are the general documents that you have to submit:
● Duly filled application form
● Proof of Identity (any one of these documents): PAN card, Aadhaar card, voter’s ID card, passport, driving licence, ration card, etc.
● Proof of Residence (any one of these documents): Aadhaar card, property documents, rent agreement, utility bills, etc.
● Proof of Income: Salary slips for the last 3 months, bank statements for the last 3 months, Income Tax Returns (ITR), etc.
Eligibility Criteria for a Credit Card Application
Meeting the required eligibility criteria set by the financial institution is crucial. Here are some general parameters:
● You must be between the age of 18 and 65 years
● You must have a stable income and employment
● You can apply if you are a salaried or a self-employed individual
● You must have a good credit score
Things to Consider When Applying for a Credit Card
Here are some important points to keep in mind before applying for a card:
Credit Card Usage
Nowadays, credit card companies offer tailored options to meet the diverse needs of users and attract more customers. Therefore, choosing the right card is also extremely important to make the best use of its benefits. You can start by assessing your spending patterns and your regular needs.
For instance, if you are a student, getting a student credit card may be an ideal choice since you can get discounts on books, fee payments, travel, etc. On the other hand, getting a travel credit card is a smart choice if you are a frequent traveller, as it can help you book flights and hotels at discounted rates.
Associated Fees and Charges
Like any other financial product in the market, credit cards also come with certain fees and charges. The most significant charge associated with a credit card is the interest rate. You must always look for a card option that comes with lower rates, as higher interest rates can increase your borrowing cost significantly.
In case you opt for partial credit card payment, the interest keeps on accruing on the unpaid balance, which can result in high financial liabilities. In addition, checking other particulars like late payment charges, annual renewal charges, joining fees, and reward points redemption charges, among others, is also important.
Credit Limit
When you apply for a credit card, the issuer grants you a credit limit. They sanction this limit after assessing your creditworthiness based on various factors like your income, employment, credit score, existing debts, etc.
Therefore, understanding the offered credit limit is essential for managing your finances responsibly. You must assess your requirements to understand if the approved credit limit is feasible.
Reward Points System
Most credit cards offer the benefit of earning reward points on your card transactions. You can redeem these accrued points for shopping at various online/offline stores, discounts and deals on dining at partner restaurants, vouchers, and gift cards.
Some issuers even allow you to exchange these points for cashback. To make an informed decision, understanding how the reward points system of your card works is essential.
Additional Benefits
Most issuers offer benefits such as complimentary access at airports in India and abroad, discounts on hotel and flight bookings, waiver of fuel surcharge, complimentary insurance, and much more.
You can also get discounts and offers on shopping at select outlets, dining at partner restaurants, concierge services, and more.
Now that you know about the application process, eligibility and paperwork requirements, you can apply for a credit card matching your lifestyle needs with ease. Before applying, choosing the right option is essential to enjoy the maximum benefits of your card. Remember to assess your spending pattern before you explore various card options available to select the best card.
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