If you want to avoid carrying cash or making cash payments for every purchase you make, buying a credit card can help you go cashless and also manage your money better. It gives you the benefit of discounts, reward points, good credit score and more while you use it for your transactions and also provides you with a sufficient time to repay the borrowed amount.
Unlike debit cards that immediately debit money from your bank account, credit cards give you a considerable window to make your purchases and then pay them off in your monthly billing cycle. Thus, it takes care of your immediate and emergency expenses and lets you pay for it later.
There are a few criteria that you should match before filling in the credit card application form for purchasing the same:
- Should be aged 18 and above
- Must be an Indian citizen or resident
- Must have a savings bank account
- Must have a regular flow of income to pay bills
Applying for a credit card is an easy task since all you need to do is to fill the relevant details in the form if you match all your bank’s criteria. The tough part is to get approval for the same. Since credit card is more of a pre-loan that you use to make purchases, your bank will take the following factors into consideration before issuing one to you:
- Your location: Your location is important for processing your credit card application as it is approved for residents living only in certain cities since not all retailers accept credit cards.
- Current or existing debt: Your credit utilization ratio plays an important role in your card approval. Having debts and dues higher than the granted limit might affect the approval process of your application.
- Credit score: A good credit score always increases your chances of application approval, while a bad score will lead to its rejection.
- Employment: Banks also consider your employment status while processing your application. If you have been working in your current job for more than a year, your chances of getting a credit card improves significantly.
Important Documents to Submit
While applying for a credit card, different banks demand different documents to be submitted along with the application. Common ones include:
- Properly filled application form
- Passport-size photographs
- Form 16 (for an employee)
- Income slips (for self-employed) and salary slips (for employees)
- Proof of business
- ID proof
- Bank statements (for employees)
Unlike online banking or debit cards, credit card is a much better solution for quick payments and easy transactions since it would not deduct money from your bank account immediately. Also, for larger amount, it is good to use a credit card and make payments later on than exhaust your current bank balance. Thus, in order to get your credit card application approved easily, ensure you meet all the above criteria and carry all the required documents with you. Once your application is approved and the card is dispatched, you will also enjoy the benefit of cashless transactions.
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