As a first timer, getting your first credit card can be an exciting prospect. While learning how to get a credit card is the first step, knowing its features inside out is also key to enjoying:
- Convenience in payments
- Rewards and deals
- Flexibility and increase in purchasing power
Getting a card in your hand includes various steps from understanding your eligibility to comparing different cards for optimal benefits.
Brief on How Cards Function
Credit cards give you a certain limit for a billing period. You can use it to purchase goods and services and pay bills. This limit is based on your:
- Financial profile
- Credit score
- Age and employment
Managing a card well means paying its bill on time. Why? Making late payments means you end up paying a high interest on the overdue amount as well as a late fee. What’s more, your pattern of repayment is reported to CIBIL, Experian and other credit information companies.
Hence, defaults can have an adverse effect on your credit score. Conversely, timely repayment can help enhance your score. And your score is the key to getting affordable credit and pocket-friendly loan terms in the future – or not.
By clearing the dues in full, you steer clear of interest charges. For instance:
- Say your credit limit is ₹25,000
- You have made a transaction worth ₹10,000
- You can pay the total amount or the minimum amount
- The minimum due is usually around 5% of the total (which in this case will be ₹500)
- On paying the minimum due, you can avoid late fees but will need to pay interest on the overdue amount
- On clearing the full bill, you do not need to pay any interest charges
Factors To Consider While Getting a Credit Card
Before applying for a card, checking these elements can help you manage it better:
Associated Fees and Charges: Make sure to ask your issuer regarding interest rates and late payment fees before applying. This may come in handy in case you miss a payment. Also, inquire about other charges such as annual fee joining fee, and other hidden charges.
Reward Programs: Many cards come with reward programs, making it a lucrative option. These perks and rewards may include:
- Reward points on transactions
- Discounts on purchases
- Cashback on certain payments
- Accelerated perks for specific spending categories
- Travel benefits, such as air miles, discounts on flight and hotel bookings
Select a card that provides a reward program aligning with your financial needs. That way you can enjoy the maximum benefits of your card.
Additional Advantages: Here’s a look at the other benefits of signing up for credit cards:
You can save more with joining benefits, such as vouchers, accelerated points or cashback
You can use a card well to build your credit history over time
You can facilitate high-ticket purchases using the EMI option
You can also take a cash advance against your credit limit
Eligibility and Documentation Requirements
While applying for a card, issuers check a few basic criteria.
- You should have a stable income and employment
- You must be a resident of India or a non-resident Indian
- You should be above 18 years of age to be the primary cardholder
- You should have a good credit score, preferably 750 and above
Apart from that, submitting the required documents as proof is necessary:
- Recent passport-sized photograph
- Proof of Income: Aadhaar card, PAN card, Voter ID card, passport, driving licence, etc.
- Proof of Residence: Aadhaar card, PAN card, Voter ID card, passport, driving licence, utility bills, etc.
- Proof of Employment: Income tax returns, salary slips for the last 3 months, etc.
- Any other documents, depending on the type of card and the issuer
How To Get a Credit Card: Application Process
By following these simple steps, you can apply via both online and offline processes depending on your convenience:
- Step 1: Visit the issuer’s official website or access their mobile application
- Step 2: Fill the application with the required information
- Step 3: Provide the necessary documents
- Step 4: The issuer will verify the information
- Step 5: After successful verification, the issuer will approve your application
If you are looking for a credit card with instant approval, the One Credit Card is a brilliant choice that comes with no annual or joining fees. Moreover, it offers a plethora of offers, cashbacks, discounts and more.
You can earn 5X rewards on the top two spending categories per month, which you can use to save on your future transactions. Enjoy this festive season with offers like flat 35% off on Snitch and ₹400 off on eligible shopping transactions on Ajio.
The One Credit Card full-stack mobile app allows you to check offers near you via GPS, so you never miss out on discounts. Apply now to get started!
