A credit card can be very useful in times when you are facing a cash crunch and need instant access to funds. With timely credit card bill payments, you can also give a boost to your credit score, which is important for getting loan approvals from lenders. Now, if you are looking to apply for a credit card, do note that there are several factors that need to be considered. Read this article to know the easiest way to apply for a credit card online and the things you must check before applying for a credit card.
How to get a credit card?
The application procedure for a credit card consists of three steps – researching credit cards and deciding on one, checking one’s eligibility, and submitting one’s application.
- Finding a suitable credit card
We generally opt for credit cards based on the rewards on offer. You must prioritise certain credit card uses that can prove to be helpful, such as the credit limit, whether or not the bank offers a balance transfer facility, the annual fee, etc.
- Checking one’s eligibility
After selecting a credit card, you must verify your eligibility. Please note that the eligibility criteria vary from one bank to another. Here are four general criteria laid down by credit card-issuing banks:
- Most age-related criteria require the applicant to be 18 years of age or above. Certain banks insist on applicants being at least 21 years old.
- If you are a salaried employee, your annual income should be at least ₹3 lakhs. However, you should check this detail directly with your bank since this criterion is subject to change depending on the bank.
- You should have a good credit score to avail a credit card. A credit score between 750 and 900 is considered to be ideal.
- The bank also checks your employment status to check whether you can repay your credit card dues.
- Submitting one’s credit card application form
Lastly, you must submit your credit card application form. Popular banks like IDFC FIRST Bank allow customers to apply for credit cards online. This method is the easiest way to apply for a credit card today. IDFC FIRST Bank’s “instant credit cards” offer attractive rewards at comprehensive interest rates, too.
Checklist to follow while applying for a credit card
Here is a brief list that you must follow to ensure that you opt for a credit card that is advantageous for you:
- Note the credit card’s interest rate and the interest-free period. The credit card interest-free period is the duration from the transaction date to the payment due date.
- Carefully read the fees in the terms and conditions document. Knowing the details of your repayment cycle in advance can help you save money in the future.
- Once you know these details, use a credit card EMI (Equated Monthly Instalment) calculator online. Similar to how a personal loan EMI calculator works with personal loan EMIs, a credit card EMI calculator helps with displaying the value of your future credit card EMIs.
- Check if the bank offers a balance transfer facility. ‘Credit Card Balance Transfer’ is a facility allowing credit card users to transfer their credit card balance to another lender who offers a lower interest rate.
- You must also check the rewards and benefits offered by a credit card before applying. The better the rewards, the more preferable a credit card is.
Follow the points mentioned in this article to easily avail a credit card from the comfort of your home. Use an online mobile banking app such as IDFC FIRST Bank’s mobile app to apply for an instant online credit card.