Credit card companies are going all out to eclipse each other in terms of benefits offered to customers. From reward points to special discounts at partner locations and approvals in record time, a lot is being brought to the table to entice potential customers. Credit card companies are simultaneously very discerning about who they would like to extend credit to. It follows then, that credit card applicants should be just as choosy. You’re going to be screened for certain before that credit card falls into your lap. So why not learn how to go about screening credit companies too! Wouldn’t you like to get the best credit card; one that offers you the most benefits?
If you have questions such as how to apply for a credit card, what is my credit card eligibility and what sort of benefits should I seek from my credit card, you’ve come to the right place. Today we’re going to teach you how to apply for a credit card after zeroing in on the one that is best for you, in 5 simple steps.
Step 1: Compare the features of various cards available
All credit cards offer you credit, of course, but to what extent? Check the credit limit being extended to you by various banks and NBFCs. Also, have a look at the other benefits being dished out by the various brands that you have shortlisted. Some amazing benefits that you can hone in on include:
- Instant approval and affordable charges
- Welcome rewards and rewards linked to purchases
- Privileges like discounts at partner merchants and partner brands
- Emergency advance at low-interest rates like 1.16%
- Interest-free cash withdrawal facility from ATMs
Step 2: Sign up to check your credit card eligibility
Go through the eligibility criteria to see if you qualify for a given card. Most credit card facility providers will need you to be between 21 and 65 years of age. They will need you to be living in the country. The bank or NBFC might also require you to be a pre-existing customer to some extent. Maybe you are already using another service or product by the same bank or NBFC? That certainly helps the process along.
Most importantly, you will need to have a credit score of about 750 and upwards to get access to the more desirable credit cards that offer an edge when it comes to benefits extended to card-holders.
If you are able to check all the boxes on this primary self-checklist, you can proceed to the pre-approval stage.
In the pre-approval stage, the bank or NBFC will try to extract all the information that tells them whether you are likely to be able to pay your debts in the long run. You can sign up for pre-approval by simply keying in your number on the website of the bank or NBFC that you have selected based on its bouquet of benefits.
Step 3: Provide details honestly and completely
There will always be the temptation to overestimate your income or underestimate your debts and spending habits in the pre-approval stage, but remember that proof of everything will be pored over in the application stage. Therefore, it is absolutely imperative to be completely honest during the pre-approval stage. If you are going to end up getting rejected, it is better for it to happen in the pre-approval stage because such a rejection will not reflect in your credit report. If you are rejected after your formal application, however, that’s a permanent stain on your credit report. You don’t want that, because it will affect your ability to obtain credit (across loans and credit cards) in the future.
Step 4: Get all your KYC documents ready for application
The documents required for your application are fairly simple and straightforward. Some documents that you must keep handy are related to proof of identity and proof of address. Your options for address proof documents include Aadhaar card, Passport, Driving license and
Voter ID, while documents for identity proof also include your PAN card. The bank or NBFC might also ask to see paper-work like salary slips and bank statements to evaluate your income levels and your spending habits.
Your application will also require a photograph but given the times we live in where cameras are handier than pens, in most offices and households, obtaining a photograph of yourself for an online application should not be far too much of a hassle.
Step 5: Apply online
You don’t need to know any special tips or tricks on how to apply for a credit card prior to applying, because the process of online application has been made very intuitive and straightforward. You simply need to fill a form to provide all correct information, upload your KYC documents, and perhaps attend a virtual verification call.