With India shifting fast towards a less-cash economy, credit cards have become a must-have financial tool for every wallet. However, one needs to know about the right process and important things before applying for a credit card. Read below the several factors you should consider before choosing and applying for a new credit card.
Know the eligibility criteria
This is the basic eligibility criteria which you need to meet to get a credit card.
• Age: The minimum age to apply for a credit card should not be less than 18 years. It may vary from one bank to another.
• Employment Status: You must be either salaried or self-employed with a regular source of income.
• Credit Score: The applicant must have a good credit score and credit history.
• Salary Slips: The applicant should have the latest three month's salary slips.
• Bank Statement: The applicant should have the latest three month's bank statement.
Evaluate your needs to know what kind of a credit card you need that matches all your requirements. There are various kinds of credit cards available in the market. You need to choose the one that offers you the maximum benefit and suits you the best. It will be best to choose a lifetime free credit card i.e. the card in which you do not need to pay any annual charges or maintenance fee to keep your card active. It is one of the best options for those individuals who are applying for the card for the very first time.
Check your credit score to know whether your credit card application will get approved or not. To apply for a credit card, you need to have a good credit score along with a good credit history. If you are applying for your first credit card or a new credit card for the first time, you may not have any credit score. In such cases, your net monthly income is considered by the banks to determine your eligibility.
Make sure you cross-check and compare multiple credit card offers online. This will help you to get the best card. You can compare credit card offers from various banks directly on your preferred bank’s website or any Fintech portal.
Keep your documents handy: You should be ready with all the necessary documents required for the approval. The documents should include your complete income information including previous payslips and bank statements, as well as the ID proofs and other necessary documents. Being ready with such preparations, it will boost your credit card application process.
Know the process of credit card application i.e. whether you want to apply online or offline. You can choose any mode that you are more comfortable with. To apply for an online credit card, you can directly apply from your preferred bank’s website or through any Fintech portals. Alternatively, you can also apply for the credit card offline by visiting the bank branch along with the required documents.
Bonus Tip: The best part about getting a credit card is that one can use it to build their credit history. A credit card can take you a long way when it comes to building your credit score. However, you can only do that if you can be sure that you can keep a handle on your finances. You need to make sure that you make all the payments on time, and do not use the card for splurging. Use your credit card responsibly, and if you do it can do wonders for you.
Read more - Lifetime Free Credit Cards with No Annual Fee