Applying for a credit card for the first time and not knowing which credit card will be the best for you? No worries, we are here to guide you through this. We know how easy it is to be overwhelmed with the sheer number of credit cards available in the market. Choosing the best credit card for yourself might feel confusing as well as challenging to you. In such situations, you just need to sit down with a pen & paper and make a list of a few things that can help you make an informed decision. Once you decide which card you are going to choose, the process becomes very easy as gone are the days when you had to wait in long queues to submit your credit card application form in the bank branch. You can now apply for a credit card online as well. In this article, you can find 7 easy steps that will help you pick up a credit card that suits you the best.
7 easy steps to consider while applying for a credit card for the first time:
- Avoid listening to credit card myths: While applying for a credit card for the first time, you will undoubtedly hear at least 7-8 myths about credit cards. Avoid listening to such misconceptions as they have a tendency to mess with your mind, which can impact your decision for a credit card.
- Identification & classification of your needs: Before applying for a credit card, you must identify your needs and purpose for which you need a credit card and which credit card will perfectly align with your needs and requirements so that you can make the most out of your credit card. You will also need to check your spending habits before selecting credit cards. If you shop a lot then you must look for a card that provides the best shopping benefits, and if you are a frequent flyer, then you need to go for a travel credit card and so on. This way can help you maximize the benefits of a credit card.
- Eligibility requirement: You need to check whether you are eligible for the card you are applying for or not. Select only those credit cards that fit your age and income eligibility and eliminate other credit cards. The minimum age requirement varies for different card issuers. Some banks issue credit cards to individuals who are 18-year-old and above whereas other card issuers have kept 21 years as a minimum age requirement. Not meeting the minimum 21 years age requirement, you can still get it as an add-on member.
- Narrow down to a few credit cards: After identifying your needs, checking eligibility requirements, and all other requirements, narrow down to those credit cards that reap the most benefits and fit your profile. Make a list of 3-4 credit cards that checks all your requirements. Choose one credit card from the selected choices that provide you with the maximum benefits and perfectly fit your profile. You can write down a few questions and answer them like:
- Will this card be helpful and will it meet all my needs?
- How much will it cost me?
- What are the terms and conditions of the credit card?
- Can I upgrade my credit card at a later stage? And so on….
Answering such questions can help you to narrow down your choices and limit you to fewer credit card options which will be the best choice for you.
- Check credit score: You need to have a good score to apply for a credit card. A credit score between 700-750 is considered to be good. Not having a credit history can decrease the chances of your credit card application approval. To build a good credit score you need to use a credit card wisely. However, you can still apply for a credit card without any credit history if you meet all other requirements.
- Type of credit card: After identifying your requirements, you need to narrow it down to the type of credit card you want from the wide range of best credit cards in India. There are a lot of credit cards available in the market, including lifestyle credit cards, cash back credit cards, travel, and fuel credit cards. If you are applying for the first time, you can start your journey with secured or zero annual fee credit cards.
- How to apply?: You can choose to apply for a credit card through two modes of channel i.e., online and offline. You can visit the respective credit card’s issuer official website and select the credit card and click on apply. Fill in the required details and submit. You can also visit the respective credit card’s nearest bank branch and apply for the credit card by submitting the application form with the required documents.
The above given are some tips to pick the best credit card after thoroughly analyzing your needs and requirements and ticking off the lists and making the pros and cons of a credit card can really get you started with the credit card application procedure. The right way to use a credit card is by keeping all dues clear and not using it beyond the provided credit limit.
Just bear in mind that using a credit card responsibly and sensibly can reap the benefits out of a credit card and you will never have to worry about lending into a debt trap.
