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A credit card is the best financial tool to manage your finances. It offers an instant way to access funds and repay balances without incurring any interest. The interest charges apply when you delay your repayment. So, if you do not know how to get a credit card, the application process is straightforward. However, you will need to meet the issuing bank’s eligibility requirements.
If you use your credit card judiciously, you can easily manage and track your monthly expenses without burdening your budget. Some credit cards offer grace periods, which can significantly bring down the cost if you pay all your charges each month. You can also get reward points and cashback on purchases through your credit card.
Features of a New Credit Card
When you apply for a new credit card, you can avail of numerous features that significantly lower the total cost of borrowing. Here are the features of a credit card:
The right way to get a new credit card
To know how to get a credit card, you will have to meet your issuing bank’s eligibility requirements and submit the requisite documents. The most crucial part of applying for a credit card is to ensure your bank that you have the income required to pay your credit card balances on or before the due dates.
1) Meet the eligibility criteria
Before submitting your credit card application, you will have to ensure that you meet certain requirements. If you apply at a nearby branch, your bank will ask some questions to determine your credit card eligibility. Furthermore, if you apply online, you will need to enter your eligibility information in the beginning to know your eligibility. Failing to meet the requirements will result in application rejection.
Here are the common requirements that you will need to meet:
The minimum age to apply for a credit card is 18 years, and the maximum eligible age is 65 years.
You will need to convince your bank that you have a sufficient salary to repay the balances every month. You will be required to show proof of income, such as salary slips, ITR, or form 16.
Credit card issuers in India require the applicant’s citizenship as Indian. If you are not an Indian, you are not eligible to apply for a credit card.
Whether or not you can get a credit card also depends on your credit score. Your card issuer will check your credit score before approving your application. A bad credit score holder will struggle to get a credit card. Whereas, a healthy credit score ensures approval and lowers interest charges.
2) Submit the requisite documents
You need to prepare and submit the following documents along with your application:
Identification proof: Passport, PAN Card, Aadhaar Card, or Voter ID Card.
Address proof: Aadhaar Card, Electricity Bill, or Telephone Bill.
Income Proof: Salary Certificate, Salary Slips, or Employment Letter.
3) Fill in the requisite information on your application form.
After meeting the eligibility requirements and arranging the documents required, you can apply for a credit card. The information that you need to mention in your credit card application is:
4) Applying for a credit card online
Due to the COVID-19 pandemic, issuing banks and non-banking financial institutions have resorted to online platforms to provide credit facilities. Thanks to the internet, the process of application has become convenient and hassle-free.
Before visiting an issuing bank’s website, compare credit cards offers. After that, select a credit card that best serves your needs and preferences, and ensure to meet the eligibility criteria of the issuing bank.
Here is the process of applying for a credit card online:
After submitting your application, allow your bank to run KYC and verification checks. The bank may contact your references and employer to verify the information you have mentioned in your application. Your issuing bank will contact you within a few days to notify you of the decision made on your credit card application.
To get a new credit card in India, you will need to have a stable income and a healthy credit score. A credit card with maximum rewards and benefits will require at least three to seven years of good credit history. The minimum credit score requirement to get a credit card is 750. It means that the closer you are to the range of 900, the higher your chances of securing lower interest charges, cash advance fees, etc.
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