Credit cards have become a popular method of payment in recent times due to certain benefits attached to them.
You can make your purchase using a credit card and pay later without incurring any interest.
You can get reward points, cashbacks, and great discounts with every purchase.
Timely credit card bill payment can boost the CIBIL score of an individual. This, in turn, can increase the chances of availing loans in future. Lending institutions consider such high CIBIL scores as reflective of your good credit history.
Therefore, credit cards have many considerable advantages. However, individuals must bear a few things in mind before applying for these.
Taking stock of one’s existing credits.
Individuals applying for credit cards must have an estimate of their existing debts. Financial institutions sanction applications of people who efficiently manage their credit. This is because proper credit management leads to a strong credit rating, which in turn, is crucial for getting one’s application sanctioned.
In case an individual misses out on repaying his/her EMIs, then he/she would first need to get their dues cleared if they wish to apply for a credit card. Applicants with a credit score higher than 750 are considered ideal.
Determine the kind of card needed.
Prospects must choose the right card that supports their credit requirements. For example, an individual with a personal vehicle must select a card that provides discounts and reward points on fuel purchases. Those who might have to go abroad can select a card that gives them free lounge access in airports, and offers on air ticket bookings, etc.
Choosing the right credit card allows individuals to save a lot on the associated expenses. This is because credit cards allow users to access plenty of deals, offers and discounts. Hence, they influence considerable savings throughout the year.
What if an individual is applying for a credit card for the first time?
Candidates applying for credit cards for the first time must provide financial institutions with adequate proof of their income. Financing institutions should consider the applicant to be bankable before sanctioning his/her application.
First-time applicants must be sure of repaying their dues on time, before making their credit card application online. In other words, they must make prudent use of their cards. Making payments within the billing cycle ensures a high CIBIL score, which is a reflection of your efficient credit history.
Therefore, first timers get an easy option to gain a good credit score to speak for them. A credit score of 750 or above goes a long way for them to secure loans in the future.
In the beginning, however, they can opt for a card that has a lower limit to orient themselves with repayment schedules and usages. They can go for an increase in credit limit, later on.
Who should you approach to apply for credit cards?
Individuals can approach financial institutions like Bajaj Finserv for their applications. The Bajaj Finserv RBL Bank SuperCard offers several industry-first features. There are six of these cards that applicants can choose from, depending upon their specific requirements.
Further, these cards have the advantage of serving as four cards in one, which sets them a class apart. Also, unlike other credit cards, these cards charge no interest on cash withdrawals from ATMs. They only charge nominal processing fees on such withdrawals.
Plus, they also offer interest-free personal loans on credit cards for up to 90 days, once every year. These loans too, come with a minimal processing fee of 2.5%. What’s more, Bajaj Finserv provides pre-approved offers on personal loans, home loans and several other financial products apart from the credit cards. These offers further reduce the time required for processing the application making it even easier for prospects to access their cards at the earliest. Users only have to provide a few basic details to avail of their pre-approved offers.
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