Credit Card Application And Approval: 5 Things To Consider
Credit cards have been instrumental in shaping the way the whole country transacts. Gone are the days when you needed to carry hard cash and faced the hassles that come with it. With this valuable tool at your disposal, a world of benefits and security await you. In the right hands, a credit card provides financial liberty, money-saving perks and rewards that allow you to do more of the things you love. Its popularity is a testament to its security, convenience and simplicity.
Although the process for credit card application used to be tedious and lengthy, with advancements in verification, you can expedite the process, provided you’re prepared. Here are a few things to consider when you apply for a credit card online to help you get approved faster.
Understand the credit card eligibility criteria of the issuer
Every issuer follows their own set of rules when it comes to eligibility terms. It is easy to get an approval on a credit card of your choice if you conform to your lender’s eligibility norms. A few of the basic credit card eligibility criteria that are common to all lenders are:
- You must be aged 18-years or above.
- You must earn a regular income as a salary or through your own business.
- You must have a good credit score.
Know your credit score and what affects it
Credit score is the metric used by lenders to gauge your ability to repay credit. Your score can be anything within the range of 300-900, and the higher the score the better. In India CIBIL, a credit rating agency, is most popular in determining your credit score. You can check your score with CIBIL anytime you want by paying a nominal charge.
Several factors add up to your credit score. Here’s what CIBIL takes into account while deciding your score.
- Credit repayment history: Timely credit card payment of your dues and EMIs reflect positively on your score.
- Credit utilisation limit: This is the ratio of your credit utilisation versus your allotted credit limit. Maintaining a healthy ratio shows that you are not credit hungry.
- Multiple loan application: Application or queries you make for multiple loans reflects badly on your credit score. This alerts lenders and you’re deemed as credit hungry.
- Loan servicing term: If you’re servicing a long-term debt in a timely manner, it will have a positive impact on your credit score.
- Increase in credit limit: If you make frequent requests for an increase in credit limit with your lender, then this is likely to affect your score negatively.
Find out the fees associated with your credit card
Signing up for a credit card entails processing costs and annual fees. It falls on to you to do the research and choose a credit card issuer that suits your financial capabilities. Select a card like the Bajaj Finserv Platinum Choice SuperCard to enjoy zero joining fees for one year.
Research the market for a credit card that offers unique benefits
The market isn’t short of credit card issuers looking to make a customer out of you. Rather than falling for a dubious offer, choose a credit card that brings attractive rates and benefits to the table. Feel free to browse the issuer offerings and compare them basis your priorities and spending needs.
Get the documents you need ready for hassle-free approval
After making all the decisions and choosing your issuer, you’re at the last leg of your application process. The application has a standard requirement of documents that you must have ready to make the process hassle-free. They are as follows:
- Identity Proof
- Address Proof
- Income Proof: Bank statements/ latest payslip
- Age Proof
Following this simple guide, you can apply for the right credit card and enjoy quick approval too. To enjoy instant approval, check your pre-approved credit card offer online. This significantly reduces the effort required on your end and lets you avail of your new credit card instantly. In addition to being a credit card, the SuperCard is also an EMI Card, Loan Card and a Cash Card, which gives you more flexibility at your fingertips. To get started, apply for a credit card online today!