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What to Keep in Mind when Applying for a Credit Card

 
  By : , New Delhi, India       19.3.2019         Phone:9716171569          Mail Now
 

It is important to have a clear understanding of your chosen credit card and its offerings and terms to ace your application process. Applying for a credit card need not be a difficult task. Just keep the following points in mind to make an informed decision while applying for a credit card.


Choose from the various types of credit cards as per your needs

Taking into consideration the various needs of customers, issuers are now offering a wide range of credit cards. These are classified based on your income, spending patterns, and rewards offered. For instance, if you travel to work by a two or four wheeler, you can avail a fuel card and make the most of the rewards on petrol and diesel that this card offers on every transaction you make. On the other hand, if you are a regular traveller, you can opt for a travel card, which offers access to airport lounges, air miles, and other benefits. So, the first step is to choose the right credit card to enjoy maximum benefits.

Check the eligibility criteria and terms & conditions

You may be tempted to apply for credit card given all its attractive rewards. However, you can only avail it when you meet certain eligibility requirements laid down by issuers. Such terms and conditions may vary across issuers. However, the following are the common eligibility criteria:
†- You should have a good credit score (some issuers specify this to be at least 750).
†- You should have a regular and consistent income.
†- You should be aged between 25 and 65 years.
†- You should have a history of making timely payment of credit dues and payments in the past
†- You should have an existing business relationship with the issuer.

Be aware of various fees, charges, and interest

All the beneficial features that you can enjoy on a credit card come at a price. First of all, some issuers may charge you joining fees or an annual fee on your credit card. Apart from this, you are also required to pay transaction fees in case of using the card abroad, when you opt for balance transfers or cash advances, and make an overdraft on your credit limit. The issuers also charge you exorbitantly when you delay making bill payments beyond the grace period specified by them. Finally, you may also be charged a substantial interest in case you make cash withdrawals on your credit card. Thus, it is your duty to shop around for credit cards that have nil or minimum charges, fees, and interest rate. For instance, the Bajaj Finserv RBL SuperCard allows you an interest-free cash withdrawal for up to 50 days.

See if you can avail an emergency loan to meet a cash crunch

Though creating an emergency fund is important to address urgent needs, availing a credit card helps you refrain from using up your savings during such adverse times. In addition, some issuers allow you to convert your credit cardís cash limit into an emergency personal loan. The interest rate differs across issuers. So, shop around for credit cards which have low interest rates on this front. For instance, you can take an interest-free emergency loan for up to 90 days on your Bajaj Finserv RBL SuperCardís cash limit. With such an economical option, you can address any emergency, be it getting a medical treatment or replacing a laptop in a jiffy keeping your savings untouched and intact.

Check the billing cycle and plan repayment

You credit card is billed every 27 to 31 days depending on the issuer. The period between the two billing dates is known as a billing cycle. Any purchases that you make during the billing cycle, your credits, fees, and other charges are added or subtracted from your credit card account balance. The issuer then bills you for the outstanding amount due, incurred during a billing period, at end of a billing cycle. If you fail to pay this amount within the last date for credit card bill payment, the issuer charges you an interest that can be as high as 36-48% per year. In order to avoid this, you can make minimum payments on your total outstanding, but this will not help you avoid the interest entirely, because then the issuer charges interest on the remaining balance. This attracts interest on interest till you clear all your dues. Therefore, it is important to make timely payments in full. So, check the grace period between the time your bill is issued and the payment is due when applying for a credit card and plan your repayment.

These 5 important points will help you to use your credit card judiciously even before you apply for one. Consider applying for a credit card that is versatile and offers various beneficial features. For instance, a Bajaj Finserv RBL Bank SuperCard is a multi-purpose card that serves as a credit card, an ATM card, a loan card, and an EMI card. It has minimal charges and offers winning features like interest-free personal loan, interest-free cash withdrawals, conversion of purchases into 3 easy EMIs, and rewards on dining, international spends, movie tickets and more.

How to apply for Bajaj Finserv Credit Card

You can apply for the Bajaj Finserv Credit Card, called the SuperCard, online as well as offline. To go the offline route, visit your nearest branch and get in touch with a representative. To go the online route, check the credit card eligibility criteria and terms and conditions. Work on your shortcomings, if any and gather all the required documents. Next, check your pre-approved offer to view your personalized deal and enjoy instant approval. Click on apply for credit card and proceed with the application. On approval of your credit card, you can enjoy offers, discounts, cashbacks, and reward points and save over Rs.55,000 annually. So, apply now and start reaping the benefits right away!




TAGS: credit card,   applying for a credit card,   Bajaj finserv,   Bajaj Finserv Credit Card,   super card,  




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