9.13 million credit cards were added in India between February 2018 and February 2019. The easy availability of credit cards from several financial institutions has provided impetus to this growth. However, with these card issuers offering various benefits, it can be a challenging task for an individual to select the ideal card.
You can ask these questions to yourself before opting for a credit card apply online procedure to make the most out of it.
Is your credit score good enough?
Card issuers determine your creditworthiness with the help of your CIBIL score. Hence, obtaining a clear idea regarding the rating you hold can help you significantly. It is one of the most important things to know before applying for a credit card.
If your CIBIL rating is low, then you can increase it with the following methods –
- Paying off your existing debts within.
- Avoiding applying for multiple credits.
- Report any discrepancies in your credit report.
Do you have the financial capacity for timely repayment?
Every credit card comes with a minimum repayment amount that you are required to pay each month in case you are not willing to pay the total amount. Failing to pay the amount within time will attract penalty fees, and interest will be charged on the outstanding amount.
Before you apply for a credit card, analyse your financial capacity so that you can repay your credit card debt effectively.
Is there an annual fee?
Most credit card issuers charge an annual fee to the customers for using a credit card. This fee differs according to the type of credit card. There are several credit cards in the market that does not require an annual fee. This charge is added to your bill. Before opting for a credit card apply online procedure, check if it charges a yearly fee.
Is there a rewards program?
Credit card issuers offer reward points to a cardholder for each transaction via a card. These reward points can be used to avail discounts on your future transactions. You can also receive a significant amount of reward points as a joining bonus depending on the credit card company.
Few credit cards also offer cash backs on certain transactions. For instance, fuel credit cards offer surcharge whenever you purchase fuel using it. Furthermore, card issuers also have partner retailers that offer substantial cashback every time you purchase something.
Hence, always consider this pointer before applying for a credit card and opt for a suitable card that offers rewards mainly on the areas you are likely to spend on.
What are the associated charges?
Apart from the interest rates that can be levied on outstanding credit, there are various other charges that you may be liable for to apply for a credit card. Issuers can charge for transactions abroad, if you exceed your credit limit, etc. Beware of these charges before opting for a credit card apply online process to make the most of your card.
Are there other benefits?
Card issuers offer several additional benefits along with credit cards. For instance, some credit cards provide interest-free ATM withdrawals. It ensures that you can avail cash in case of emergency.
The Bajaj Finserv RBL Bank SuperCard is one such credit card that offers interest-free ATM cash withdrawals up to 50 days. Also, you can avail an emergency loan on your credit limit with an interest-free period of up to 90 days.
They also provide pre-approved offers to ensure that the time required to avail such cards are comparatively less, and the process is straight-forward. Along with credit cards, these pre-approved offers are valid on a plethora of financial products and services, including home loans, personal loans, business loans, etc. Check your pre-approved offer by providing a few essential details like your name and phone number.
The above-mentioned questions will provide you with a clear idea on how to apply for a credit card with favorable terms. Compare the interest rates charged by the issuers beforehand to select a suitable card for you.