Certain things you should be aware of before applying for a credit card

2020 witnessed a massive growth in the demand of credit cards. In order to support the challenging financial situation, individuals have now become even more dependent on different kinds of personal borrowings.

Various leading financial institutions have introduced a broad range of credit cards to meet the market demand.

But before searching about how to get a credit card, a first-time applicant needs to put attention on specific factors that are likely to affect their application.

Individuals must be well aware of the interest rates, and be cautious about the constant interchanging of debt instruments.

All the applications are taken into account on an individual’s credit portfolio, along with the number of dismissals.

These can lessen the chance of getting future monetary aid as well as affect their credit rating.

Take a look at the following pointers that one should consider before he/she applies for a credit card:

Current debt amount

In order to reduce the chances of rejection of application, one must be familiar with his/her present debt situation.

This is one of the reasons why a credit card application may get declined, and can also reduce the creditworthiness of a borrower.

Moreover, credit card issuers may impose higher interest rates and low credit limits if an applicant has significant debt.

Therefore, one should repay his/her outstanding debts, and then apply for a new card to enjoy maximum benefits.

Reason for availing a credit card

There are several credit card variants available in the market, which are specifically designed to meet certain requirements.

One can even apply for a free credit card if they do not want to pay annual fees and other charges.

Hence, every applicant should first assess their need and spending pattern and accordingly choose the right credit card for themselves.

Read all the terms and conditions

Financial tools like credit cards hold a liability of repayment, so borrowers must go through all the terms and conditions stated on the card accounts carefully while applying.

Loyalty points and benefits

The most attractive feature of credit cards is incentive programs. Based on the issuer and card type, it may come with several benefits like discounts, loyalty programs, cashbacks, vouchers, etc.

One must know how to redeem their credit card reward points as well. Hence, borrowers can opt to avail financial tools like Bajaj Finserv RBL Bank SuperCard, which offers lucrative reward programs.

Apart from a lucrative reward program and competitive interest rate, Bajaj Finserv also provides pre-approved offers to existing customers, which makes the application process hassle-free and time saving.

One can check their pre-approved offers by providing some of their credentials, like name and phone number online.

Other charges

Many a time, credit card providers levy some penalties like processing charges, balance transfer charges, annual charges, etc.

So, it is again essential for a borrower to be acquainted with all the necessary fees beforehand.

However, individuals can also avail a free credit card, which does not carry an annual fee.

Besides these above-mentioned ones, a prospective applicant must also be familiar with the eligibility criteria and documents required to apply for a credit card.

Eligibility criteria

● An applicant must be between 21 and 60 years of age at the time of applying.

● He/she must be a salaried or self-employed individual.

● They should posses a credit score between 750 to 900.

● Total monthly income should not be less than Rs.15,000.

Documents required

● ID proof like Aadhaar card, Voter’s ID or passport.

● Address proof like utility bills or Voter’s ID.

● Proof of income in the form of payslips, income tax returns or Form 16.

● Birth certificate or passport for age proof.

● Form 60.

● PAN details.

Borrowers must select the best-suited credit card by following the above-mentioned aspects to gain maximum benefits.

Hence, before proceeding with how to get a credit card, one should consider the essential aspects, and then make their selection.

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