Credit cards offer useful financial services, and, as a beginner, you should learn how to apply for a credit card and use it for maximum savings. In addition to having a perfect card, credit card companies understand that one size doesn't fit all. So, they offer a variety of cards. All you need to do is choose the card that perfectly meets your needs.
How do I apply for a credit card?
First you should know:
What is a credit card?
A credit card is a plastic or metal rectangular card that provides you with a certain amount of credit. You can use this amount to pay your bills or to go make purchases—and use the convenience of EMI payments.
Apart from giving you access to credit, a credit card offers discounts, rewards, and many other deals. It not only allows you to go cashless but also enhances your security. Zero liability protection guarantees that you won't bear any responsibility for authorised purchases made with your card. To enjoy all these benefits, it will serve you to learn the intricacies of a credit card to use it better and more responsibly.
How does it work?
Consider it akin to a loan that doesn't offer a fixed amount but instead provides you with the flexibility to access funds as needed. Understanding how that works is essential before applying for a credit card. Basically, you borrow money from a credit card issuer and pay it back in the next billing cycle. You can also pay in installments—but do so without fail. Upon failure to pay on time, you will accumulate interest on your remaining balance.
Choose the Right Credit Card for You
Whether it is your parent, your sibling, or your friend, everyone’s needs are different. So, the card they are using may not be right for you. The best thing to move forward with a card is to choose one that suits your requirements and lifestyle.
You can consider various cards before applying for one. However, you should consider these terms and features to determine if they align with your needs.
Joining fees
Annual fees
Billing cycle
Interest rate
Late payment charges
Cash advance charges
Welcome benefits
Rewards and discounts
Eligibility criteria
You should have concise knowledge of the credit card you want to apply for. As mentioned earlier, there are many credit cards on the market. If you're not satisfied with a card's features, look elsewhere.
Benefits
Get these benefits when you use your credit card.
Use the EMI option for large purchases
Enjoy the safety of carrying a credit card rather than carrying cash
Build your credit score efficiently
Receive and use cashback, rewards and discounts
Words of Caution
Credit card benefits are exciting if you have a favourable credit score and a stable credit history. However, to build a high credit score, you need to be cautious about the following:
Be careful about your spending limits
Do not be an impulsive buyer
Repay your monthly dues without fail
Try to avoid cash advances as they entail higher charges
Keep your credit card utilisation ratio within 40%
Adhering to these words of caution can help you amplify your benefits. It’s essential to know how to use a credit card effectively to thrive financially. By improving your credit score, you have the potential to increase your credit limit in the future.
Eligibility Criteria
Now, you have a cohesive knowledge of what a credit card is and how to maintain it. You can proceed to understand the eligibility criteria for these cards. To qualify for a card, you need to meet the following terms:
Criterion | Requirement |
Age | 18+ |
Nationality | Indian citizen |
Income | A stable income source or meet the minimum limit set |
Credit score | Usually, 720+ |
These terms may vary by issuer. Check the eligibility criteria of your chosen card before applying. You can also secure a card approval by investing in a fixed deposit. This can be beneficial if you are a beginner and lack the necessary credit history to qualify for a card.
Apply For a Credit Card
After meeting the eligibility criteria, you can follow these steps to get the card:
Choose a credit card
Get your documents ready
Find and fill out the application form
Submit the form with your documents
Get approval
Receive your credit card kit
Activate your credit card online or offline
Credit cards can help you increase your spending power and get benefits while Swiping. As a novice, your goal should be to progress gradually. The One Credit Card is a card that simplifies managing your usage and maximising deals. It offers 5X monthly reward points on your top two spending categories, along with many seasonal discounts across brands like Snitch, Puma, DMart, McDonald’s, Yatra, and more.
It is a lifetime-free credit card that comes with a powerful mobile app. With this app, your bill and rent payments become hassle-free. You can also monitor and track all your expenses at a glance. The app also lets you set budget limits for your spending and helps you keep your credit utilisation in check. Download the app or visit the website to initiate your credit card journey.
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