Choosing a credit card might not be very easy always, particularly if you have specific needs. So, follow these basic steps to find out the ones that suit you the most. We will cover certain factors like your credit score and financial behaviour to help you make an informed decision.
Depending on your credit score
To begin with, check your credit score. Then, check the credit cards that are ready to offer you cards depending on your score. If you have a better score, you will get better benefits. If your credit score is worse than you thought, go through the credit reports and identify the issues. You can always change the way you spend, hence improving your credit score, or spot errors in the reports if any.
What kind of card do you want?
This also means you have to simultaneously consider the features of the card that you want to go for. You can have:
- Reward credit cards give you rewards on the basis of how you spend. Check the rewards rate, welcome offer or sign-up bonus, and annual fee.
- 0% intro APR cards if you think you will need time to pay back. Check how long the 0% intro APR lasts.
- You can look out for balance transfer credit cards if you have debt because that way you will need to pay less interest. Check the length of the 0% balance transfer which is the most important part and then pick the one which has the lowest balance transfer fee.
Compare and contrast the available options
If you have decided on the kind of credit card, it is extremely important that you do not get one right away. So, shop around. Check who gives you the best offers. The criteria that you must check out while comparing and contrasting the available options are listed in the section above.
- Keep in mind, for each kind of credit card, you must keep in mind different criteria.
- Also, keep a track of the fees and rates of interest.
- If you cannot decide on one card, you can fill out and submit a pre-qualification form online. They will come up with your qualification status. This does not affect your credit score. However, this does not guarantee that your request for the card will be definitively accepted.
Applying for the card
The steps might differ a bit from bank to bank but the basic crux remains pretty much the same:
- Fill in your contact details.
- Fill in your PAN details.
- Submit a detailed application form.
- If you are already approved, you will not need the income details. If not, a representative will physically come and collect the documents in hard copy.
If your application is successful, banks here in India generally take 7-10 working days to process the entire application. This might again differ a bit from bank to bank but at the end of this period, you will get your credit card. So, after a few days of receiving the approval of the application, you will receive the credit card physically at your home or office address.
So, you must not get yourself a credit card right away without going through this entire process. Most importantly, you must trace your expenses to maintain a good credit score and when you have a credit card, you should continue doing the same. Mindless splurging can be dangerous. Hence, aim at clearing your bills by the due date. The more disciplined you are, the better your credit scores and the lesser penalties you will have.
