Things to know before applying for your first Credit Card

Get Kotak League Platinum Credit Card & earn 8X reward Points on your every spends of Rs.150 across all categories.
Know More
Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.
By clicking on the hyper-link, you will be leaving www.kotak.com and entering website operated by other parties. Kotak Mahindra Bank does not control or endorse such websites, and bears no responsibility for them.
At your request, you are being re-directed to a third party site - https://www.billdesk.com/pgmerc/kotakcard/ wherein you can make your payment from a different bank account. Kotak Cards does not guarantee or warrant the accuracy or completeness of the information, materials, services or the reliability of any service, advice, opinion statement or other information displayed or distributed on the third party site. You shall access this site solely for purposes of payment of your bills and you understand and acknowledge that availing of any services offered on the site or any reliance on any opinion, advice, statement, memorandum, or information available on the site shall be at your sole risk. Kotak Cards and its affiliates, subsidiaries, employees, officers, directors and agents, expressly disclaim any liability for any deficiency in the services offered by BilIDesk whose site you are about to access. Neither Kotak Cards nor any of its affiliates nor their directors, officers and employees will be liable to or have any responsibility of any kind for any loss that you incur in the event of any deficiency in the services of BiIIDesk to whom the site belongs, failure or disruption of the site of BilIDesk, or resulting from the act or omission of any other party involved in making this site or the data contained therein available to you, or from any other cause relating to your access to, inability to access, or use of the site or these materials.
Note: Available in select banks only. Kotak Cards reserves the right to add/delete banks without prior notice. © Kotak Mahindra Bank. All rights reserved
By clicking on the hyper-link, you will be leaving www.kotak.com and entering website operated by other parties. Kotak Mahindra Bank does not control or endorse such websites, and bears no responsibility for them.
By clicking on the hyper-link, you will be leaving www.kotak.com and entering website operated by other parties. Kotak Mahindra Bank does not control or endorse such websites, and bears no responsibility for them.
By clicking on the hyper-link, you will be leaving www.kotak.com and entering website operated by other parties. Kotak Mahindra Bank does not control or endorse such websites, and bears no responsibility for them.
By clicking on the hyper-link, you will be leaving www.kotak.com and entering website operated by other parties. Kotak Mahindra Bank does not control or endorse such websites, and bears no responsibility for them.
22 MAY, 2020
Credit cards have become the most important financial tool in today’s world. It is the go to mode of payment for a number of purchases and assists in making convenient transactions. From purchasing groceries to making flight bookings, a new credit card is one of the easiest modes of payment. Are you planning on getting your first credit card? Well, you may have several questions on your mind when choosing the right one. It is essential to make the right pick or you can end up into a financial down pit.
Here are some things that you must remember before you apply for your first credit card:
Rate of interest – Credit cards either come with a fixed or variable rate of interest. When the rate is fixed, you will know the cost levied with each billing cycle. However, with a variable interest rate, it can fluctuate. You must consider the rate of interest very closely and pick a suitable one.
Rate and fees – Credit cards come attached with multiple fees and penalties attached. The most common charges include fees on cash advancements, transactions, balance transfers and more. If you pay your bill late or surpass your credit card limit, there is a fee that you will have to pay. These fees and charges can drain your funds and you must look for one that comes with reasonable charges. Keep away from cards with exorbitant fees.
Rewards Programs and Benefits – Credit cards typically come with reward programs and incentives that you are granted upon making spends. Card issuers also have tie ups with different brands and offer a range of benefits in collaboration. This includes rewards on flight bookings, grocery and clothing shopping, and much more. These incentives can be great and can help you save a lot of money when used wisely. However, you should not go overboard with spends just to earn and redeem rewards.
Apart from the above listed factors, you must also understand the eligibility required for application of a credit card. Typically, banks require you to fulfil several essentials such as the acceptable age bracket, having a steady income through employment or self-employment, producing identity proofs and more. After you apply for a credit card, the bank may take 7 to 10 days to review and approve your application.
Read more about 4 ways to ensure a smooth approval of a credit card here.
You have already rated this article
OK