Are you planning to apply for your first ever credit card? Here’s everything you need to know before you go ahead with the application process.
Free credit cards are incredibly convenient and can prove to be great financially with all the cool credit card benefits that they have to offer. However, before you can even apply for one, you must fulfil the criteria prescribed by the issuers. These criteria vary from issuer to issuer and honestly, it can get quite overwhelming. Especially if you are new to the world of credit cards.
In such a scenario, a little research and a whole lot of comparative analysis can come in handy. But where do you start? What exactly do you look for? Well, don’t worry! We’re here to help and we’ve compiled a list of all the important things that you must know before you apply for a credit card.
Here are a few things to take into consideration before getting a free credit card or otherwise:
- Types of credit cards
From cash credit cards to travel credit cards and a lot many in between, there are several types of credit cards available in India. The card that you choose must cater to your specific needs. If you are unsure of what kind of card will serve your purpose, you can choose a card that offers the benefits of various kinds of cards in one. For instance, Bajaj Finserv RBL Bank SuperCard acts as a cash card, credit card, loan card, and EMI card – all in one!
- Annual percentage rate
The credit card’s Annual Percentage Rate or APR is one of the most important aspects to consider. The Annual Percentage Rate is essentially what the issuer charges you for the money you borrow via your credit card, each year. Annual Percentage Rate, however, is not standardised, meaning many credit cards often carry high APR while others offer a low APR.
To get the most out of your credit card, it is important to strike a balance between your spending and the APR charged by your issuer. Comparing the different APRs offered by different issuers before finalising the credit card that you want to apply for is an important step that you must not skip.
- Existing credit score
Issuers use credit scores to measure the credit worthiness of a consumer. It is a numeric representation of your credit history that is used to ensure that you will make good on your debt and the issuers won’t suffer a bad debt by lending you money. It takes into account your open accounts – savings or loans, active EMIs, repayment history etc., and is a mandatory requirement that you must fulfil before applying for a credit card.
Once you get a credit card, using it to make regular payments and paying your credit card bills on time help in building and maintaining a better credit score. This will make it easier for you to apply for loans in the future.
- Credit card benefits
Credit cards bring with them a slew of benefits that you can use to your advantage. Issuers often partner with various airlines, fuel stations, online ecommerce giants, businesses, and other service providers to offer unbelievable offers that attract more customers. While having these perks is a plus, you might end up paying certain hidden costs for them. Especially when you don’t use them. Therefore, it is important to choose a card that offers benefits relevant to you and your usage.
- Compare credit cards
But how do you determine which card is better suited to your needs? By comparing credit cards. Whether it is a free credit card or a credit card that you purchase, it is advisable to compare your options before applying for one.
There are several third-party websites that offer neutral information about different credit card issuers. You can weigh the pros and cons of each credit card and make an informed choice based on it.
Conclusion:
Applying for credit cards can be daunting for beginners. The jargon is too confusing, the criteria too strict and the approval time can really test your patience. But with these tips, you can streamline the process to a great extent! Bajaj finserv providing you with online as well offline services to apply for credit cards with minimum document criteria .Just you need to visit your nearest branch or Bajaj finserv online store and get instant approved credit card.