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How to Master the Art of Credit Card Application: Dos and Don'ts

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July 25, 2023


What’s Inside

Credit cards are an essential aspect of modern financial transactions. When used wisely, they can offer numerous benefits, such as cashback rewards, travel perks, and the convenience of online shopping. However, if you are not aware of the procedures that are required to apply for credit cards, it can significantly impact your financial health.

The Do's of Credit Card Application 

Here are a few factors that will ease your work, if you are going to apply for credit card: 

  • Understand Your Credit Score

Knowing your credit score is essential before the bank credit card applying process. Your chances of being approved for premium cards with richer benefits and cheaper interest rates increase if your credit score is higher. 

  • Compare Multiple Offers

Research and compare credit card offers from various financial institutions to find the one that meets your specific needs. Consider interest rates, rewards programs, annual fees, introductory offers, and additional perks. 

  • Check Eligibility Criteria

Some cards have a minimum income requirement or a credit score range prerequisite to eligibility. Applying for cards for which you are ineligible can lead to multiple hard inquiries on your credit report, which may negatively impact your credit score.

  • Keep a Check on Your Credit Utilization

The proportion of available credit that you are using is referred to as credit utilization. A high credit utilization percentage might harm your credit score. To demonstrate good credit management to potential lenders, maintain your credit utilisation below 30%.

Don'ts of Credit Card Application

Here are certain points that must avoid while applying for a credit card:

  • Don't Apply for Multiple Cards Simultaneously

Applying for many credit cards in a short period of time might raise red flags with lenders and harm your credit score. Every credit card application results in a hard inquiry on your credit report, which might reduce your score by a few points. 

  • Don't Overspend

While credit cards offer financial flexibility, it's crucial to spend responsibly and within your means. Avoid accumulating debt by maintaining a budget and only charging what you can comfortably repay.

  • Avoid Maxing Out Your Credit Limit

Exhausting your credit limit might have a negative influence on your credit score and debt-to-credit ratio. To maintain a good credit utilization ratio, it is best to use only a fraction of your available credit, ideally less than 30%.


Mastering the art of credit card application involves understanding your financial needs, carefully comparing offers, and applying selectively. By being informed about the credit card application process, you will be able to make an informed decision. 

Get a Credit Card that gives you the best bang for you buck

If you're looking for a credit card that gives you the best bang for your buck, the Fi-Federal co-branded credit card is what you need. With this card, you're assured of a 2% valueback through rewards. But that's not all, as you'll also get 5x on your top 3 brands, 2x on all partner brands listed in the Fi Catalogue (including Amazon, Netflix, etc.) and 1x on everything else, including rent and fuel. What's unique is that you earn points through Fi-Coins. For travellers, the perks are even better, as you can convert your Fi-Coins to airline miles or cashback.

Frequently Asked Questions

1. What are some do's and don'ts for using a credit?

Do's for using a credit card:

  • Pay your bill on time and maintain a good credit score.
  • Keep track of your spending to stay within your budget and prevent overspending.
  • Utilise rewards and benefits offered by the card to maximize savings on purchases.

Don'ts for using a credit card:

  • Don't make cash advances as they often come with high fees and interest rates.
  • Refrain from sharing your credit card information or PIN with anyone to prevent fraud or unauthorized use.

2. What are 4 things to consider when applying for a credit card?

When applying for a credit card, consider:

  • Your credit score - a good score increases approval chances.
  • Interest rates and fees - look for low rates and minimal fees.
  • Rewards and benefits - choose a card with perks matching your spending habits.
  • Terms and conditions - read and understand all terms before applying to avoid surprises.

3. What are the 3 best practices when utilizing a credit card?

The three best practices when utilizing a credit card are:

  • Paying the full balance on time each month to avoid interest charges.
  • Keeping track of spending to stay within budget and prevent overspending.
  • Taking advantage of rewards and benefits offered by the card to maximize savings on purchases.

4. What is the golden rule of credit card use?

The golden rule of credit card usage is to pay your monthly debt in whole and on time. You may prevent interest costs and preserve a decent credit score by doing so. It promotes good credit management and keeps you out of excessive debt.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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