Things to Know Before Applying for a Credit Card Application in India
Credit cards have become one of the critical financial instruments nowadays in managing day to day expenses efficiently. However, comparing and selecting the right credit card depends on various factors one must consider. After assessing the spending habits and other needs behind availing the card, individuals can arrive at the right credit card for maximised benefits. Various financial institutions in India offer credit cards with different facilities. Thus, individuals need to know a few important aspects before submitting the credit card application. Rejection of the application can affect credit history negatively as well. So, it is essential to consider all eligibility requirements to improve the chances of approval. Here is a list of essential factors that need to be considered.
  • Income and repaying capacity
The income of applicants is a crucial decider of the eligibility of credit cards. Higher earnings improve the applicants’ repaying capacity, thus cutting down the financial risk of the lenders. Also, with considerable income, individuals can clear credit cards outstanding in time and help to establish a reliable credit history. Thus, individuals should opt for credit cards only when they have a constant flow of income. Also, they must apply for the credit limit accordingly.
  • Card types
Several types of credit cards are available to cater to users with different spending patterns. So, individuals need to assess their spending habits to arrive at the best card to apply. The available card types include travel credit cards, shopping credit cards, Fuel credit cards, business credit cards, and more. Thus, compare credit cards in India with their features and reward programs to arrive at the best one.
  • Credit limit
Before starting the credit card application process, individuals should have a clear idea about the credit limit. This is the ultimate threshold that users can spend with a credit card determined by the issuer. A higher credit limit means increased capacity to purchase. However, you must also consider your income when deciding on the credit limit for affordable repayment.
  • Grace period
Before working on the credit card application, borrowers need to know how the grace period works. It is a timeline within which applicants don’t need to pay any interest on the amount utilised off their card limit. Usually the grace period begins after completion of the billing cycle to the upcoming due date. To avoid paying anything extra on the credit card spends, they need to pay the total bill amount within this period. A longer grace period means more time before you may bill payment. Thus, compare credit cards in India accordingly before finalising.
  • Fees on the card
Several fees like annual fee, joining fee, cash withdrawal fees, processing fees, late payment fees, etc. come along with the card. Some financial institutions waive fees on specific purchases, which can be beneficial for the user. Moreover, applicants also need to know about all the terms and conditions before submitting a credit card application. Interest rates are another charge on your bill due which incurs on non-payment of the bill in time. Thus, you should also know how to reduce the interest rate and save money before applying to maximise the utility.
  • Credit utilisation ratio
The credit utilisation ratio is calculated by dividing the total spendings by the credit availed. It is crucial to keep this ratio below 30%, which is an ideal requirement by lenders. It means users should spend less than 30% of their credit limit to maintain a high utilisation ratio. It helps improve the chances of application approval. Furthermore, applicants should always research about their preferred financial organisations before applying. Also, they should consider cards like the Bajaj Finserv RBL Bank SuperCard with different benefits. Furthermore, this financial company also comes with pre-approved offers that significantly save time on the approval process. These offers are available on their other financial products like travel loans, personal loans, business loans, etc. To check pre-approved offers, applicants need to put their personal details online. Thus, availing a credit card is a financial responsibility that needs to be fulfilled efficiently by the users. They must consider all the above-said aspects before sending a credit card application. Also, to use credit cards cost-effectively, applicants need to know how to use and what to do with credit card rewards points.

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