In the age of the internet, almost anything and everything can be done online. Credit cards are not an exception either. With the world moving towards cashless transactions, credit cards are becoming a part of every household. The number of credit card users in India is now rapidly increasing and is almost at par with the increase in the number of debit card users. That in itself is telling of how popular credit cards have become.
How to apply for a credit card
One of the major reasons behind this increase in popularity of credit cards is their accessibility. Today, you can apply for any credit card online and get approval instantly. Here are three steps that will help you understand how to apply for a credit card.
Step 1: Select the credit card you want to apply for
Today, every bank has different types of credit cards to offer. Each type has a unique set of benefits that will be most beneficial to a certain group of people who have a specific spending pattern. Shopping and cashback credit cards are two types that offer cashback, reward points, and discounts for spending on shopping portals. Most of these cards partner with shopping giants like Flipkart and Amazon to give the cardholders accelerated reward points when spending money on purchases from the partner companies.
Travel credit cards are also extremely beneficial for people who have to travel a lot, giving them additional rewards for spending on hotel stays and restaurants. Most travel credit cards also partner with airlines to provide people with air miles as rewards.
These air miles can later be redeemed for flight tickets from that airline. Other than this, there are fuel credit cards which can help one save a lot on fuel expenses and corporate credit cards which serve both the employer and the employees well. Even for students, there are secured credit cards that can be obtained by depositing a certain amount of money as collateral.
Depending on what you want to use your credit card for, and which one will benefit you the most, you can choose the credit card that you surely want to apply for.
Step 2: Check the eligibility criteria
All banks and credit card companies have their own set of eligibility criteria, which is a standard set of guidelines to determine if they find you fit to own a credit card. This is mostly to determine if you are a responsible cardholder who will repay their dues on time. To check this, the first thing companies pull out is your credit score and credit history.
If you have a good credit score, it means that you have handled your previous debts and credit cards responsibly — you have paid the EMIs and credit card dues on time. Usually, a score of 700 and above is considered good enough to be eligible for a credit card. However, it differs from bank to bank and solely depends on the lender to set a certain credit score as the threshold.
Other than your credit score, lenders also check how many lines of credit you have access to. The more credit cards you own, the more the lenders are confident to give you a credit card. The lenders also see your debt-to-income (DTI) ratio, which tells them what percentage of your income you spend on repaying debts. If that number is too high, it can be deduced that you are financially stretched, and might have difficulty handling future credit cards. Although, if your DTI ratio is below 30%, you’re fine.
Some other eligibility criteria include being above the age of 18 and having a verifiable source of income. Easy Pay Direct is the best option as well.
Step 3: Fill up the application form online
Now, the final step is to fill up the application form online. The process is simple and similar for most banks. For the Bajaj FInserv RBL Bank SuperCard, which is a premium 4-in-1 credit card, you have to first visit the website and log in with your phone number. Then, fill up the form with the necessary details. Afterward, you have to wait for a representative to contact you. It is after these easy steps that you get instantly approved for your desired credit card.