The complete process of How to get a Credit Card

Are you compromising on your needs due to insufficient cash in hand? Now, you don't have to do so, as you can buy groceries, book an airline ticket, enjoy holidays, and purchase the latest electronic gadgets by swiping a credit card and paying the bill later. These cards are quite convenient for instant cashless payments.

It is a must-have in your wallet as you can earn reward points, discounts, and cashback on your purchases. Hence, if you are looking for a credit card application process, this blog will guide you to get the appropriate card.

Who can apply for a Credit Card?

Financial institutions like banks ask everyone to pass the credit card eligibility criteria. It can be applied by someone at least 18 years of age. Also, the applicant must be salaried or self-employed with a regular income.

How to apply for a Credit Card?

The credit facility offered by financial institutions and banks to the customers wherein they can borrow funds within the prior approved credit limit. The limit is based on the credit score and income of the applicant. You can either directly contact your bank through call or mail or select a credit card application online. Now, the paperwork can be finished within a few minutes. Let's have a look at the procedure of credit card application.

Analyze your credit report

A credit card enables a person to make credit payments. In the process, the bank makes the payment on your behalf until you pay the entire amount to the bank. Hence, the bank accesses your repayment capacity before issuing the card by evaluating your credit score.

The credit limit provides information about the payment history, defaulted payments, and whether you have stayed within the limit.
So, it would help if you keep your credit report ready before applying for credit cards in India.
A low credit score can lead to the rejection of the application, whereas a decent score can help you to get it without any hassle. A score between 750 and 900 enhances the chances of getting it.

Eligibility Criteria to apply for a Credit Card

Every bank has a different set of criteria.

Age- Many banks in India provide credit cards between 21 to 65 years of age.
Income- The bank ensures that they must get the money back by analyzing the applicant's annual income.
So, you must fulfill the required guidelines issued by the bank to avoid the rejection of your credit card application.

3.Analyze your requirement

Every person has their requirements and needs a credit card that can fulfill their financial needs.

If you are a frequent traveler, opt for the one that provides credit card payment offers on flight tickets and hotels.
Some people want a credit card that offers attractive discounts on restaurants and shopping, while others want it to avoid fuel surcharge.
Hence, understand your needs and compare every feature carefully.

4. Documents to apply for a Credit Card

Certain documents are required to complete the credit card application process online. Banks use these documents to evaluate card eligibility and creditworthiness. Also, you are required to complete KYC and other vital requirements.

The documents are:

Income proof
Pay slip for last 3-6 months
Aadhaar card
Bank account statement for 3-6 months
PAN card
Passport size photo
Address proof like driving license, electricity bill, or passport.

5.Approval and verification

Once you have filled in all the credit card information online, it's time to wait for the approval. The bank requires you to complete the necessary verifications before receiving the credit card. The process includes verifying documents and rechecking credit history. Then you receive the card at the registered address.

Features and benefits of a Credit Card

Credit cards provide easy access to funds so that you are not required to wait for your salary. Here, we are discussing certain credit card benefits and features that will guide you in selecting the card as per your specifications.

Features of a Credit Card:

EMI conversion- Paying expensive medical bills and buying expensive electronic items affect you financially, but you can easily manage them with a credit card. The flexible EMIs enable you to plan monthly finances with ease.
Personalized credit limit- The limit differs according to credit types and issuers.
Quick approval- With digitization, you can apply for a credit card and get one instantly that can be used in emergencies.
Cash withdrawal- One of the key benefits is that you can withdraw cash at a time of need.
Emergency loans- At the time of need, you can also take a personal loan on a credit card.
Offers- Every time the transaction is done, you earn rewards and discounts on certain brands and services.
Secured transactions- The cards come with security features for a safe transaction. So, you can also enjoy contactless credit card payments with a fraud protection facility.

Advantages of a Credit Card:

Manage huge expenses- You can buy high-tech gadgets without paying the amount on the spot. Also, convert your bills into interest-free EMIs.
Reduce transactions in cash- Plastic money enables the reduction of cash transactions and limits the carrying of huge bundles of money in your pocket.
Build credit history- The credit score can be improved with regular payment and proper card use.
Provides discounts and cashback- You can easily save money on fuel surcharges, get discounts on shopping, and get travel vouchers with exciting discounts.
Record of every transaction- At the end of the month, you get a detailed report of transactions that helps evaluate spending habits and manage expenses.

So, enough advantages motivate you to get a credit card. Furthermore, there are various types of credit cards, so select one as per your need.

Different Types of Credit Cards in India

You can apply for the best credit card per your need and spending pattern. Below mentioned are various credit cards.

Travel- The card enables you to earn reward points, discounts on rail & air tickets, and access to VIP lounges.
Fuel- Reduce transportation expenses by saving on fuel with a fuel credit card.
Shopping- You get discounts and cashback at certain offline and online partners.
Student card- Students above 18 can apply for discounts and rewards. They can easily make instant payment on their education and boarding expenses.
Business card- This card helps you to manage business expenses.
Lifestyle cards offer maximum savings by providing exciting shopping, dining, and travel discounts.
Entertainment card- This card offers immense offers and rewards on movies and dining.
Cashback cards provide cashback, rewards, annual fee reversals, and more.

Conclusion

Credit cards make your life easy and hassle-free. You can easily purchase expensive items without waiting for next month's salary. Also, it is quite useful to use in case of emergencies or taking a loan at a time of need. It is easy to apply for a credit card online and get approval by verifying your documents and the required eligibility criteria. This blog will be useful to get the complete information on getting the credit card as per your specifications.

FAQS on apply for a Credit Card:

What is a Credit Card limit?

It is the maximum amount that an individual can spend. This limit is set by the companies offering credit cards.

Why was my Credit Card application declined?

Credit card applications can be rejected due to low income, poor credit scores, mistakes in the application, verification issues, and owing many cards. You must fulfill the eligibility criteria established by the banks.

What is the minimum salary for a Credit Card?

Your income must be between Rs.1 44,000 to Rs. 25 00,000 annually to apply for a credit card. Also, check with your bank as it varies with financial institutions.

Do I need to use my Credit Card every month?

You are required to use a credit card regularly to avoid additional charges.

Can I apply for a Credit Card online?

Yes, you can easily apply for a credit card online.

What factors decide whether I am eligible for a Credit Card or not?

Age and salary are the most important factors for evaluating credit card eligibility.

Which is the best and easiest way to apply for a Credit Card?

The online credit card application is the easiest way to apply for a credit card.

Can I use myCredit Card in other countries?

You need a business credit card such as Mastercard or Visa to use in other countries.

What are the charges for withdrawing cash using my Credit Card?

The charges usually range between 2.5 to 3 percent of the transaction amount.

What should I do when my Credit Card is lost?

Immediately contact the bank or financial entity who has issued the credit card, change login details, monitor the statement, and report in case of any unusual transaction or fraud.

How to track the status of a Credit Card application?

You can track the status online or by calling the customer care service of the card issuer.