Furious about the spam calls from financial institutions for a credit card? How about you get yourself one?
If you are wondering what a credit card is. It is a credit facility usually provided by banks which allows users to borrow money for their use. For every credit card, there is a pre-approved credit limit available to users. Credit card holders can use their credit card to transact in the purchase of goods and services.
So if you are wondering how to get a credit card, know that you must first meet certain requirements like a good CIBIL score. These are based on the bank you choose.
If you don’t meet the requirements set forth by the bank, your application may be rejected. If this happens, your credit score can also be affected. Before we understand the importance of a credit score, let’s understand the features of a Credit card.
Features of a Credit Card
- Credit cards are used to make purchases of goods and services.
- credit cards can be issued by banks, stores, or other financial institutions. And this usually come with benefits like discounts, cash back, and reward miles.
- Pre-paid credit cards or Secured credit cards are solutions for people with poor or no credit.
- A credit card can provide rewards is one of the most significant perks.
Benefits of using a Credit Card
- One of the most significant advantages of using a credit card is dividing the cost of your purchases into manageable monthly payments.
- You can use a credit card to pay for anything because it is the most widely used means of payment.
- A few credit cards don’t charge interest for the first 45 to 50 days after you make an emergency withdrawal up to a maximum.
- One of the key advantages of credit cards is that you receive both comprehensive travel insurance coverage and personal accident coverage.
- Discounts at some of your favorite entertainment and dining venues, travel and shopping applications, etc., are just a few of the benefits of credit cards.
- Credit cards have advantages beyond only allowing you to make purchases on credit; they also assist in improving your credit rating.
A credit card determines your credit card score. A credit score shows a client’s creditworthiness, and it ranges from 300 to 850.
The higher the score of a borrower, the better they seem to potential lenders. Multiple factors help determine the credit score, such as payment history, types of loans, length of credit history, and an individual’s total debt.
Generally speaking, credit scores between 580 and 669 are regarded as good, 670 to 739 as good, 740 to 799 as very good, and 800 and up as exceptional. The procedure for obtaining a credit card is described below and is followed by most institutions, though there may be minor variations depending on the institution.
Here is the eligibility for obtaining credit cards in India:
– The applicant must be at least 18 years old.
– The minimum yearly income must range from Rs. 1 lakh to Rs. 3 lakh.
– The applicant must be self-employed or working on a salary.
To receive a credit card, an individual needs to submit their:
- Identity proof (any one of Aadhaar card, PAN card, license, Voters ID, passport, etc.)
- Address Proof (any one of electricity bill, ration card, driver’s license, etc.)
- Income proof (latest pay slip, IT returns, Form 16),
- Age proof (10th standard school certificate, etc.)
And now, finally,
Here’s how you can apply for a Credit Card Online
The paperwork needed to apply for a credit card is simple. The steps you must follow to obtain a credit card are as follows:
Step 1: Go to the credit card page of your bank
Step 2: Present identification and complete all necessary paperwork.
Step 3: The banks will confirm your application and carefully review it.Step 4: The bank will give you a credit card after verification.
Conclusion
One of the best payment options available to you is a credit card. You also get to create a credit history and raise your credit score while taking advantage of several incentives and discounts for using your card.
Despite the numerous features and advantages of credit cards, you should constantly remember that it is very important to use them wisely. Avoid using your credit card excessively, and don’t forget to pay all of your bills in full before the deadline. This will prevent you from being caught in a debt cycle while yet enabling you to take full advantage of a credit card’s advantages. If you already know how to appropriately use a credit card, switch as many of your purchases to your credit card, and just use your debit card to access ATMs.
