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6 Things To Know Before Applying For A Credit Card In 2018

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Before you apply for a credit card in India…6 Tips

Prior to applying for a credit card, appreciate your individual needs and discover all the vital info about your shortlisted card first. There is great merit in doing this as, it guarantees 2 things: choosing the right card and partaking application approval process carefully.

The following information must be checked before pertaining for a card, and learning to develop credit score:

Income as an important parameter 

On filling in application forms whilst applying for credit cards, the lender inquires you about assorted info like your city, age, monthly take-home income and employment type that are obligatory for deciding your credit card qualification. your income is an essential parameter among these, as it determines the repayment dues capacity per month.

On earning of sufficient money, the Indian banks will show interest in giving you, your credit card. Ensure that you don’t pertain for credit cards exclusive of a least income threshold.

Relationship with banks speeds the procedure

On having a savings or salaried account with a bank, it is rather easy to obtain a credit card, particularly on handling your accounts suitably, and maintaining a minimum balance in time, and having consistent flows of cash in the account. This is since bank can verify income details easily and check your level of activity and responsible behavior with money.

The past credit history relevance

On taking personal, education or home loans previously and currently applying for a credit card, the CIBIL report gets verified by the firm for finding out the overall credit history. All details, like on-time payments, previous loan termination, outstanding balance, etc, are all taken into consideration. Mostly, the most recent CIR and credit score are obligatory, which must be checked before applying.

Being transparent about credit card purpose

There are many types of credit cards obtainable with banks. It is most vital that you take up a credit card for yourself, which suits your most intimate and day to day needs. You will have to recognize very clearly of the chief reason for wanting the given credit card

There are a lot of means, by which you can be qualified for getting cash backs and rewards on credit cards. It is imperative to perform some researches prior to applying.

Free Credit Cards Opposed To Annual Fees

There are those credit cards that are completely free for life, and at the same time, there are those cards that come with yearly charges starting from Rs. 99 to some thousand rupees every year. Mostly, people ask for a free lifetime credit card that is apt if credit card usage is ordinary. But on having heavy credit card usages, it makes more sense to opt for the premium credit cards that would have some yearly fees, as those cards proffer grand benefits and means for saving cash.

Plus card with yearly charges have higher cash back and reward points too, along with special tie-ups with shopping stores, airlines, hotels, fuel firms etc. and maximum reimbursements for premium member. These offers cannot be availed by you on a credit card of the normal sort.

Getting credit cards against  fixed deposits

Many banks can offer credit cards as security, on opening fixed deposits (Instant Credit Cards). These are much useful for those unable to get credit cards because of low credit scores.

Bottom Line

Overall, where you have determination, you can overcome any financial objectives. Getting a credit card can be a difficult task for some, owing to the many varied obligations and documentations that need to be fulfilled previously. On following these above hacks, you can have an easy way to obtain a credit card in India.

Jay Kaul

About Jay Kaul

Jay is a financial and credit expert and freelance contributor to CreditSmart. He's always keeping his eyes open for the latest credit card trends in India and provides a sharp insight on new entries into the market.

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