Credit cards have arguably become one of the most preferred modes of cashless transactions in India. Within a few decades, India’s economy has remarkably adapted the trend. With almost Rs.2,35,000 million transacted in India using credit cards in June 2020, these payment instruments have become an integral part of regular transactions in the country.
Such staggering growth can be credited to the facilities that financial institutions bring for some of the best credit cards in India. Their easy availability and simple application process also helped increase the demand for such financial tools across the country. With most card issuers also offering the provision to apply online, it only streamlines the process further.
Applying for the best credit card
While the application process itself is straightforward and self-explanatory, there are a few things you should remember while you apply for a credit card. This will reduce any chances of application rejection, even if you are applying for a card for the first time.
Here is a quick guide to help you to know how to apply for a credit card.
- Compare the available options –
Select a particular credit card depending on your spending pattern, repayment capability, and features available. You should also weigh in your short and long-term funding needs along with the benefits on offer, with the best credit card in India complimenting and rewarding your expenses. When choosing a card, select one that ensures you earn the maximum benefits and privileges on the frequent spending categories.
- Fulfil the eligibility terms –
Once you have selected a particular credit card, you should go through the eligibility criteria specified by the card issuer. Ensure you can apply and receive approval for the same by fulfilling requirements like credit score, repayment history, monthly income, age, and other criteria. You will also have to submit documents validating the same when you apply for credit card. Prepare all the necessary documents that attest your eligibility to ensure a hassle-free application process.
You can complete your online application at any time from the lender’s website.
Certain financial institutions even provide pre-approved offers to existing customers. Such offers simplify the application process and are available on personal loans and business loans, along with several other financial products. You can check your pre-approved offer by simply sharing some essential details online.
Criteria to select the best credit card in India
Selecting the right credit card for yourself is essential to stay ahead of your debt and to avail maximum benefit from the feature-rich payment card. You should thus remember several factors while applying for a credit card. Let’s take a look at some of them.
- What is the maximum limit?
The maximum limit, or credit limit, is the maximum amount that a particular cardholder is allowed to spend from his or her credit account. Although the maximum limit is decided by the financial institution while issuing a new card, it is affected by your credit history, monthly earning, the fixed obligation to income ratio, etc. While selecting a particular card, ensure you are allocated the maximum credit limit depending on your financial standing.
- What are the repayment options?
Another important thing to know before applying for a credit card is its various repayment options. Most financial institutions offer several facilities to aid cardholders in timely repayment of their dues. This can range from an interest-free grace period to the facility of breaking down big-ticket purchases into EMIs. Some card issuers even allow customers to repay with accumulated reward points, which can prove significantly beneficial.
- Is it secure?
Another essential factor that you should look for when you apply for a credit card is its security features. Fraud liability cover and in-hand security are some of the top features that protect cardholders from any unauthorised transactions, as well as online scams. It is thus essential for you to consider it while selecting a particular credit card.
Following the tips and guidelines mentioned above will help you select the best credit card in India, as well as successfully apply to avail it in minimum time. Carefully utilising the same will help you save a considerable sum over time as well as help build a good credit history.
