How To Get A Credit Card For The First Time in India

Top 5 Credit Cards in India 2022
Top 5 Credit Cards in India 2022

Having a credit card in your wallet can provide you with a sense of financial freedom. There are numerous advantages to possessing a credit card, including pre-approved credit limits, interest-free credit for 40-50 days, and value-added bonuses such as cash back, rewards, and so on.

Credit card usage is on the rise, and many people wait until they turn 21 before getting a credit card. To begin with, you must learn how to select the greatest credit card in India because it can both develop and damage your credit history. Before applying for a credit card, it is critical to know all of its terms and conditions.

For the first time, you need to look at things like offers, discounts, rewards, fees, payment alternatives, services, terms & conditions, and the credit limit.

Also Read: 5 best super prime credit cards

How to Get Approved for a Credit Card

You can get a credit card only if you have a good credit history and the ability to pay it back. Before granting you a credit line, the bank that issues your card will perform a credit check on you.

The bank frequently scrutinizes the following parameters:

  • An Indian residency.
  • At least a 700 credit score and at least six months of credit history are required.
  • A monthly salary of at least INR 15,000 is required.
  • The age should be minimum of 18 years.

Applicants with the aforementioned characteristics may want to start with secured cards, which are issued in exchange for a fixed deposit equal to 80% of the total deposit amount.

To get a credit card for the first time, those with low or unverifiable income should use a secured credit card. If you have a bad credit history, you can start with a secured credit card and work your way up to a more standard unsecured credit card.

Also Read: 5 best credit card in India

Some Points Keep in Mind Before Choose Credit Card

  • When you open a credit card account, you’ll be charged a one-time joining fee. The most basic cards cost as little as INR 500, while the most expensive plastic may cost tens of thousands of rupees. No-cost or no-entry-fee cards are also available from some banks, as are limited-time promotional deals.
  • There is a recurring yearly cost, which is generally the same as the joining price. Many credit cards also waive the annual charge if a certain amount of money is spent over a certain amount of time.
  • Unpaid balances are carried over from month to month if a cardholder does not pay them off by the due date. Interest rates on credit cards can be as high as 48% each year. When everything else is equal, it’s always preferable to use a credit card with a low-interest rate.
  • If you fail to pay your bill on time, you will additionally be charged a late payment fee in the following statement cycle.
  • When using a credit card to withdraw cash from an ATM, you may be charged a fee of 2.5 percent to 3.5 percent for every transaction. Money should only be withdrawn in the event of an emergency. Even experienced users are advised against using this feature.
  • Each credit card has a pre-approved credit limit, and an over-limit fee is assessed when you go over that amount. In some cases, it might be as high as 3.5% to 5%.

Check Out the Following Details Before applying for Credit Cards

Annual Charges: Before choosing a credit card you should aware of joining fees & Annual charges. Every year you have to pay Annual charges for your credit card. Charges can be Rs. 500 to Rs. 50,000 that depends on which card you are going to select.

Late Payment Fees: If you cannot pay your credit card bill on time, you have to pay late payment charges.

Cash Withdraw Charge: You have to pay 2% to 3% minimum charges to withdraw cash through ATM. Don’t withdraw money if you do have not any need for urgent cash.

Foreign Currency Charges: For overseas transactions, you have to pay up to 4% charges if you use a credit card.

Credit Limit: Every credit card comes with a different type of credit limit. You should check out the higher limit of your card before applying. Most of the time it depends on your monthly income.

Rewards: On every transaction, credit cards give you rewards and cash-back points. Before applying you should check out the features.

Fuel Charges Wavier: Most of the cards offer fuel charges wavier. Check out the offers through the nearest branch.

Lounge Access: If you are a tour lover, differently you should check out the lounge access facility of your credit card. Also, you can read the post 5 best credit cards with lounge access in India.

Bottom Line

Choosing a credit card in India for the first time has never been easier. Begin by determining whether or not you actually require a credit card, and only then should you proceed to read the card’s specifications. See the fees, charges, payment choices, and any current offers in the card’s specifications.

You’ll be able to select the ideal credit for your needs once you’ve examined all of the retail information.