Using a credit card is the best alternative to manage your finances during a cash crunch than opting for a loan. If you use your credit card wisely, you will not have to pay interest at all. You can purchase goods and services from a predefined credit limit determined based on your income and credit score. Before getting a credit card for yourself, you must be mindful that it requires you to be judicious while using it to make purchases.
We have prepared a list of tips if you do not know how to apply for a credit card.
Check Your Credit Score
The first thing you need to do before applying for a credit card is to check your credit score. You must know your credit score to determine if you qualify for a credit card. It is a three-digit number that lenders check to determine your creditworthiness. It usually ranges between 300 and 900. A credit score that is 750 or above is excellent, 650 to 749 is good, 550 to 649 is average, and any score below that range is bad credit.
To get a credit card that comes with maximum rewards and other benefits, you must maintain an excellent credit score. If your credit score is poor, you may want to delay applying until your credit improves, or you can apply for a secured card to improve your credit score.
Meet The Eligibility Criteria
After ensuring that you have a healthy credit score to apply for a credit card, check your issuing bank’s eligibility criteria to apply for your preferred credit card. You can visit your bank’s website to check the requirements. Although the eligibility criteria vary across issuing banks and the type of credit card you choose, here are the requirements that are common across all platforms:
- You must be an Indian citizen to apply for a credit card
- You must be at least 18 years old while applying for a credit card, or you must be 65 years old during maturity.
- You must have a stable income based on your issuing bank’s policy. Your bank will require you to submit your salary slips and bank statement along with your application.
- You must be residing in the city required by your issuing bank.
Compare Different Credit Card Offers
If you have a credit score below 600, you may not qualify for a credit card that comes with maximum rewards, bonuses, and other benefits. But, if you have a credit score that is 750 or above, you can get a credit card with a large sign-up bonus and lucrative rewards. The features and benefits of a credit card depend on the type of credit card you choose and your credit score.
After checking your credit score, you will need to venture out and find a credit card that offers the maximum benefits and features based on the credit score you have. If you are unable to make up your mind, it would be wise to ask for recommendations from friends and colleagues. Sometimes credit card companies and banks offer referral bonuses for being recommended by their banks. So, make sure to know about credit cards and compare different options, and then choose a credit card that best serves your needs and preferences.
Complete Your Application
After choosing your first credit card based on your affordability, you will need to complete your application. You can visit your issuing bank’s website, select your credit card, and click Apply. You will be directed to a new web page wherein you will need to fill in your online application form. You will need to provide your details, such as name, contact number, email address, residential address, etc. After that, you will have to provide your financial information, such as PAN number, annual income, monthly expenses, and bank account balance.
After filling in your personal and financial details, make sure to cross-check everything to ensure that you have filled in your form accurately. You will need to submit the relevant documents along with your application. The documents required to apply for a credit card are; identification proof, address proof, and income proof. The processing time varies across different issuing banks, but it generally takes between 10 to 15 days to get a notification of your application status.
If you are not aware of how to apply for a credit card, it is crucial to pay heed to the above-said steps. You can get a credit card that fits your requirements well based on your credit rating.