All You Need To Know Before Applying For A Credit Card

September 18, 2024 sharma

Credit cards are considered an easy and safe choice for getting credit and making online or offline purchases. Since these cards are becoming more and more popular in India, you may wonder about how to get a credit card. The actual process is quite simple. Here are some steps to follow before applying.

How To Get Credit Card Offline

If you are more comfortable visiting a branch of a financial institution, you can do so, especially if you are getting your first credit card. Follow these steps:

Start by going to the nearest branch of the bank/credit card issuer
Consult with a representative about your needs, goals and finances so you can get help in choosing the right card for yourself
Visiting the bank you already have a salary/savings bank account with can be easier
If not, ask what the eligibility criteria for the card is and ensure you meet them
Once you do, fill in the application form with the required information
Submit all of the required documents
Await approval, and if you are approved, you will get the card in your mail in up to 7 working days

If you do not meet the terms of a regular credit card, opt for a secured credit card. This card is linked to the fixed deposit you book with a bank and gives you a credit limit against the amount. It can help you build a good credit history by making timely bill payments.

How To Apply For A Credit Card Online

The online mode is as convenient and transparent as the offline method, and gives you more choices. Follow these steps:

Visit the official website of the credit card or a financial aggregator
Click on the credit card section and browse the range of credit cards available
Compare the benefits, rewards, charges and more and select your preferred cards
Check the eligibility terms and shortlist further
Apply for the card by entering your details like name, address, phone number and email
Enter your professional details, such as employment type, salary and more
Upload the KYC documents
Enter the OTP to verify your phone number and complete the application
Await approval and if your issuer offers you a virtual card, you can begin using it immediately; you will also get your physical card in the mail in about 1 week

How To Get A Pre-Approved Credit Card

In some cases, you may receive a pre-approved offer for a card. This happens when you:

Have an existing account, investments or dealing with the issuing company
Have a high sum in savings or investments
Have a creditworthy financial profile

Using such an offer, you can apply for a credit card easily. In some cases, you will not need to submit KYC documents as the credit card company already has them. This makes the application faster and more convenient.

Documents Required To Apply For A Credit Card

In most cases, you can upload copies of these documents. When you apply offline, original documents may be required for verification, but these will be returned to you. Take a look at the documents to keep handy and why.

As Identity Proof	Aadhaar Card PAN Card Voter ID Driving Licence Passport (Any of the above)
As Address Proof	Electricity bill Ration card Telephone bill Driving Licence Passport Last two months’ bank statement (Any of the above)
As Age Proof	Tenth standard school certificate Passport Voter ID Birth certificate (Any of the above)
As Income Proof For salaried individuals	Latest payslips Form 16 IT Returns Bank statements (One or more of the above)
As Income Proof For Self-employed professionals	Income Tax Returns with the computation of income Certified financial documents such as balance sheets or P/L statements audited by a CA Proof of business continuity/registration PAN card (One or more of the above)

In order to get quicker approval, make sure the documents have no errors and match the data on your application. For instance, ensure the address proof matches the address you have submitted.

What Are The Factors Deciding Your Eligibility?

While the exact eligibility criteria may vary depending on the card and the issuer, keep in mind that they normally revolve around:

Nationality: Indian or NRI
Age: 21-60 years, but may differ
Credit score: Differs from bank to bank but usually starts at 700+
Income: Differs from card to card

Things To Know About Credit Cards Before Applying

Avoid rushing into getting a card as your usage can affect your finances now and in the future. Keep these facts in mind:

Be well informed of the late payment fees, annual charges, and other related charges
Compare the interest rates across cards and try to opt for one with lower rates
Understand how to maintain a high credit score when using a card, such as keeping your utilisation ratio low
Know the credit limit you’re offered and ensure you do not overspend by setting a budget
To avoid debt accumulation, understand the total and minimum amount due in credit card bills and ensure you pay the total dues on time
Check the rewards and benefits and choose a card that aligns with your lifestyle

Having a checklist of all the documents and criteria makes the application process seamless. If you are looking for instant approval, the One Credit Card is an excellent option. Not only does it have zero annual and joining fees, but it also gives you lucrative offers on electronics, grocery shopping, travel, food, and more.

Using the One Credit Card App, which is built on full-stack technology, you can track expenses easily and also check offers near you with GPS. You can also earn up to 5X reward points on your top two spending categories each month. To get this stylish metal credit card today and explore its many benefits, apply now.