How to Apply for a Credit Card – Tips and Requirements

On behalf of financial institutions, the total number of active credit cards in India increased by more than 7.39 million. It is due to the easy and hassle-free process of how to apply for a credit card. This financial tool has become significantly accessible to people all across the country in the last decade.

However, there are several factors that an applicant must keep in mind while applying for a credit card. Lenders evaluate aspects like credit score, income, liabilities, financial history, etc. before issuing a card. The credit limit of the cardholder also depends on these details. Borrowers are likely to get approved for feature-rich credit cards if they manage their finances without any history of repayment defaults and carry a high credit score.

One can also follow certain tips to increase their creditworthiness and to avail maximum features and benefits offered by a financial institution. Here are some of the advice one can follow before applying for the feature-rich free credit card.

Things to remember before applying for a credit card

  • Check your credit score – a Credit score is one of the most important eligibility criteria for a credit card. Most financial institutions require a score of 750 or higher to apply for a card.

Always remember to check your credit score before you submit your application. A higher score will imply your creditworthiness, and the lender will be likely to offer you a higher credit limit as well as various other add-on features.

Avoid applying for a card if you have a lower than recommended credit score. It increases the chances of rejection.

  • Pick a suitable product – Look at the options available and select a credit card that best meets your financial requirements. It should have an adequate credit limit along with affordable fees and charges to ease up the repayments. You should also look for add-on features like reward points, welcome bonuses, complementary services, etc. to ensure you get the best value against the funds you spend.

Also, remember to select a product that best serves your spending pattern. For example, if you are a frequent shopper, you can pick a card that offers a handsome amount of points on both online and regular shopping. You can redeem these points to avail cashback, gift vouchers, etc.

Companies offers 6 different variants of cards to meet all your unique monetary requirements. They also provide pre-approved offers on credit cards other than on personal loans, home loans, business loans, and numerous other financial products. Such offers help you save time by simplifying the process of availing finance. You only have to share some essential details online to check your pre-approved offer.

  • Maintain good credit utilization ratio – Lenders often look at your credit utilization ratio to gauge your financial stability. A credit hungry applicant is less likely to gain the approval of a credit card.

Try to maintain a 30% to 50% credit utilization ratio before you apply for a credit card. It will increase your chances of a successful application and positively affect your credit score in the long run.

  • Don’t apply for a new card too often – You should wait for at least 6 months between applications to eliminate any chances of rejection. Applying for credits too often will make you look too credit-hungry. It can significantly reduce the chances of a successful credit card application.

These tips will help you avail the best financial tool available in the market. After you select a financial institution and a particular credit card, you will have to meet some requirements to apply for the product successfully.

Important requirements to apply for a credit card

Ensure you meet the minimum eligibility criteria while you check how to apply for a credit card. These include –

  • Age – You must be between 25 to 65 years of age to apply for a card.
  • Credit score – Lenders look for applicants with a score of 750 or higher.
  • Residence – The applicant must be an Indian resident to apply for a credit card.
  • Financial history – They must not have any history of defaulting on their credit account.

Also, you will have to submit some documents like proof of identity, proof of address, and a recent passport size photograph to apply for a credit card.

Following the above-mentioned tips and requirements will significantly help increase your chances of availing the credit card of your choice. You can utilize this financial tool to address your monetary obligations and become financially responsible.

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