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 backs, 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.
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 following parameters are frequently scrutinized by the bank:
- An Indian national possessing legitimate proof of 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 legal age of consent is 18.
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 next 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. Cash 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%.
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 specification.
You’ll be able to select the ideal credit for your needs once you’ve examined all of the retail information.