In this day and age, applying for a credit card has become easier than ever. Whether you prefer the convenience of online applications or the personal touch of visiting a bank branch, there are multiple avenues to explore. This blog explores the three main methods of applying for a credit card and delves into the benefits and essential tips for using one wisely.
You can get a credit card in three ways.
If you have a good credit score or CIBIL score, some banks offer you credit cards on their own. You may have received SMS notifications from your bank, or even calls from executives informing you that you’re eligible for one.
All you have to do is follow those instructions after being prompted, and most likely, the card will be delivered to you.
The card will either be issued on the spot or it may take a couple of days to be delivered, depending on the type of card you’re applying for.
By applying for one online via the website or the mobile app. All you have to do is log in to the website or open the app and follow these steps.
1. Select your choice of credit card based on the options.
2. Fill out the application after you select the card. You will need to submit certain documents like Aadhaar Card or PAN card as identity proof and documents to prove your source of income like salary slips (for employed) or ITR (for self-employed). However, this may not always be the case in case you’re purchasing a card from the same bank you have an account with.
3. Once the bank team verifies and approves all the details you submitted, the card will be sent to your registered address. You will need to activate the card by setting a pin that has to be confidential.
Having a credit card in your wallet gives you access to a lot of discounts and features which you might not get with your debit card or internet banking, or UPI features. Let’s cover a few of them below.
The rewards, cashback, and points accumulated for using a credit card can be later used to purchase other items at massive discounts. Many cards also give complimentary access to VIP lounges at airports, discounts on select restaurants, and not to forget the benefits provided when shopping online.
Having a good credit score is crucial. Credit scores serve as a benchmark for financial institutions to offer loans to customers. And using your credit card judiciously plays a major role in determining your credit score. Pay your credit card bills on time, and using it thoughtfully will fetch you points for a good credit score.
Did you know that it’s possible to convert the amount you owe into EMIs? Well, if you have an exorbitant bill that you can’t clear in a single payment on the due date, you can easily convert that amount into EMIs.
Suppose you buy the latest iPhone with your credit card for ₹90,000, and you get it converted into 6 EMIs of ₹15,000 each. Now, after each cycle, you will only have to pay ₹15,000 (plus interest) till you clear the entire amount. But note that your card will be blocked till you clear the whole amount.
Having a credit card can be an incredibly rewarding experience as long as you know what exactly fits. Can't find a card that is tailor made to your needs? Fi Money might have just the one for you.
The Fi-Federal Co-Branded Credit Card rewards you every time you spend. As your spending habits evolve every month, so do your rewards. We're talking accelerated rewards up to 5X whenever you spend on any of India's top 21 brands. Plus, all the bells & whistles like Lounge Access, Low Forex Fee, Customised Reminders, Spend Insights, and more. Oh, and the welcome offer includes exclusive vouchers from top brands worth over ₹5,000!
Owning a credit card and using a credit card are two very different things. When used prudently, credit cards can help cover a lot of expenses and maintain good credit health (credit score). Consider the points below to understand more in detail
With an array of credit cards available, it’s always sensible to choose a card with features you are likely to utilise the most. Choosing a card that has a lot but you may not use will only be at a loss for you.
If you know the card you want, then you must know if there are any fees attached to it. Do you require a premium card? If so, you need to be clear on why, as these cards attract high annual fees. Normally, you need to spend a minimum amount using that card if you want to avoid paying any annual fees.
Always know when your due date to pay the credit card is. Set a reminder on your phone or get apps that will remind you. If you miss paying the bill even by a single day, you will have to pay a late payment fee along with interest charges. And if the payment date is ignored continuously, your bank will send a notice which will affect your credit score.
If your balance is being carried forward again and again and you’re unable to pay the entire amount, it is a sign that you’re dependent on your credit card. Try and limit your usage to around 40% of the credit limit. A heavy credit card bill attracts heavy interest, and if you miss your due date, the amount only gets heavier. Needless to say, this will also impact your credit score.
In conclusion, applying for a credit card has never been simpler, with various options available to suit your preferences. Whether you choose to apply based on eligibility, visit a bank branch, or opt for an online application, the process can be straightforward. Credit cards offer numerous benefits, including rewards, discounts, and the ability to build a good credit score. Additionally, the option to convert purchases into EMIs provides flexibility. Remember to use your credit card responsibly by selecting the right card for your needs, understanding any associated fees, staying mindful of billing cycles, and avoiding excessive dependency. With the right approach, a credit card can enhance your financial journey. Consider exploring the Fi-Federal Co-Branded Credit Card, which offers accelerated rewards, exclusive vouchers, and a host of features tailored to your spending habits. Make the most of your credit card and enjoy the rewards it brings.
Learn more about the future of credit cards here.
Each bank has its own criteria to be eligible but below are a few common checkpoints
Credit cards are generally not issued to those who cannot show any source of income or do not have sufficient funds in their account. However, it is still possible to get credit cards by pledging collateral like mutual funds or fixed deposits.
It's important to first do your research and find a credit card suited to your needs. Post this, you can check your credit score and start the process of being pre-approved. You can then fill out the credit card application, and wait on the card providers decision.
Tracking your application is fairly simple. All you have to do is to the website/app of your credit card provider. Under a tab about your applications, you must find a section that helps you track your application. Choose this and viola!
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