Credit cards have unlocked a world full of possibilities. From mobile phones to your favourite designer clothes – any online purchase today is one swipe away. Most importantly, credit cards allow you to shop without worrying about fund availability. Credit cards are also helpful for those who need urgent funds for hospital emergencies etc. This article will help you understand the process of applying for a credit card online.
To begin with, let us explain the eligibility criteria for getting a credit card:
- Credit cards are issued to customers above 18 years of age.
- To qualify for a credit card, you must have a constant income source. With this understanding, let’s check the steps to follow to apply for a credit card online. The market is flooded with credit cards offering a range of benefits. You need to know which card is perfect for you. But first, you must learn how to apply for a credit card.
Things to Consider While Buying a Credit Card
Before you apply for a credit card online, find out which card fulfils your requirements.
Choose between low interest, 0% Annual Percentage Rate (APR), and rewards.
- A credit card with low interest
- While choosing a credit card, make sure it has a lower-than-average annual percentage rate (APRis the interest rate that one should pay after borrowing money. For credit cards, the rates are generally mentioned as a yearly rate). It is ideal for one who expects to maintain the balance in their account, as they would have to pay less because the interest rate will be less.
- A loyalty card: Based on the percentage of expenditure, they generate offers in the form of cashback, points, or miles. The offers provided by the credit card company will differ according to the occasion.
Different kinds of Credit Cards
There are different kinds of Credit cards that one can choose from:
Flexible Reward Points
This kind of credit card offers you cashback or points depending on the percentage of recent shopping you did. It may include several categories like Dining out, groceries, filling up gas etc. This may provide you with many offers too.
Cashback credit cards are a good choice for instant rewards and cashback. These kinds of credit cards get instant cashback to your account rather than using any rewards in the future.
Travel Credit Card
Such credit cards get you many offers related to travelling. So if you are a frequent traveller, this might be the perfect credit card for you.
Business Credit Card
These credit cards are used to keep private and business expenses separate. These can act like cash back, travel, and general reward credit cards.
Secured Credit Card
These kinds of credit cards are backed by cash deposits and are therefore called secured cards. Whenever you fail to make payments on your credit card, the deposit will serve as collateral, providing the issuer with security. These are the fastest credit cards to get approved and can also be used to improve credit scores.
Student Credit Cards
Such credit cards are granted to young people with limited credit history. These kinds of credit cards are also easier to get approved.
Co-branded cards are a result of alliances between merchants, networks, and issuers. They offer you good deals and interesting choices.
Store Credit Cards
Credit cards issued by high street chains or groups are called store cards. One can only use such cards in certain places.
How To Apply For A Credit Card Online
It is pretty simple to apply for a credit card on a banking website:
- Step 1: Go to the website’s ‘Credit Card’ page and select a card according to your need.
- Step 2: Click ‘Apply Now and complete the application form.
- Step 3: When you click on ‘Submit’, you will receive an instant mail for your application based on the information you supplied.
- Step 4: If your application is approved, you will be contacted by a bank representative for verification.
The card will be issued to you after the appropriate confirmation.
The documents required to apply for a credit card are as follows:
- Documents for identity verification include a voter identity card, a driver’s license, a pension book, a ration card, or a passport as address proof.
- You may also require a passport-sized photo and a PAN card copy.
This will vary depending on the bank and whether you have submitted KYC with your savings account.If the credit card application is rejected in any case then it can be due to multiple reasons, such as:
• Incomplete Verification or KYC
• Low Credit Score or CIBIL score
• Ineligibility in income
• Age Eligibility, etc.
What is a credit Score
The CIBIL is an agency approved by the Reserve Bank of India(RBI). It helps people to calculate their credit scores by checking the CIBIL score. CIBIL stands for Credit Information Bureau(India) Ltd. With the help of the CIBIL score, one can always check their creditworthiness. This score summarizes one’s credit history, the total amount of credit one has taken, how they have repaid, and other factors.
Applying for a credit card online in India is not hard but choosing the right one is. So you should always think about your daily needs and, according to that, apply for a credit card. Maintaining your credit score after obtaining a credit card is also equally important. Head to the Piramal Finance website to find out more. Piramal Finance is a leading name in the field. Experts can help with any queries you may have.