According to a 2019 report, around 3 out of every 100 Indians possess a credit card today. While this number is nowhere near the credit card to population ratio in developed countries, it shows a surge in interest for such cards.
Nevertheless, unlike debit cards, not everyone who applies for credit cards meets with approval. One must fulfill all eligibility criteria to acquire such an instrument. Individuals wondering how to apply for credit card should keep the following tips in mind for a simplified application procedure.
Credit card application tips
Today, most credit card issuing companies welcome both online and offline applications. The former process is simpler, allowing for faster and more convenient applications. Nevertheless, the tips listed below are applicable to both application modes.
- Check the eligibility criteria
Depending on the credit card-issuing NBFC of your preference, eligibility criteria can differ drastically. Before applying for a card, you must inquire about these criteria to ensure the fulfillment of each factor.
Here are some common requirements for almost all financial institutions –
- Credit score – You should possess a credit rating of 750 to acquire such unsecured credit cards. Failing this, one can avail secured cards against fixed deposits; you can use this credit card to improve your credit score over time.
- Income – The exact income requirement varies from one credit card company to another. Nevertheless, applicants must hold a stable source of income. Furthermore, their monthly earnings should be sufficient to afford credit card repayments.
- Age – An applicant’s age also plays a role in determining whether he/she is eligible to avail such a card. Generally, individuals aged over 65 years can find availing unsecured credit cards difficult. Similarly, applicants aged less than 25 years may also face rejection in this endeavour.
Check for additional criteria to fulfil to avail a credit card. This is the first step to opt for any credit product from financial institutions.
- Arrange necessary documents
Credit card applicants need to submit a set of documents along with their application. These documents establish an applicant’s identity, personal details, financial background, and additional information to the card issuer.
Thus, ensure you keep the original as well as photocopies of these documents handy to enjoy a smooth application procedure. Improper document submission is one of the many reasons why your credit card application can be rejected.
- Reduce debt
Individuals who are already under a considerable amount of debt may face rejection on a fresh credit card application. A crucial part of understanding how to apply for a credit card is to assess when to apply for the same.
Rather than submitting your application when you already have one or more outstanding dues to manage, you can choose to repay those debts before applying for a fresh card. Apart from faster approvals, doing so can also increase the credit limit on your new card.
- Compare the various cards on offer
The purpose for which one wishes to use a credit card can help him/her choose the ideal product. For instance, if you travel frequently, you can avail cards that provide discounts or rewards on flight ticket expenses or hotel bookings.
Regardless of whether one plan to apply for a card online or offline, undertaking a detailed comparison of available products is crucial. Premium cards often provide better deals than regular credit cards.
For example, the Bajaj Finserv RBL Bank SuperCard offers welcome rewards and a plethora of reward point facilities. Through this card, one can easily save up to Rs.55,000 every year.
Now that you know how to apply for a credit card, start shortlisting the products. With responsible usage, one can easily purchase high-value with these financial products.