Applying For A Credit Card? Consider These 4 Basic Things

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Business

As per reports from the Reserve Bank of India, the usage of credit cards witnessed a surge of about 54% over the last couple of years owing to the increased dependency on cashless modes of transaction. Subsequently, there has been a considerable acceleration of online sales following an increase in card spending.

In an attempt to facilitate a further boost in the usage of credit cards, reputed lenders offer apps that bring in the convenience quotient. Such financial apps streamline the management of a borrower’s credit card utilisation and hence, serve as a one-stop solution for all post-investment and loan services. Bajaj Finserv offer a simple and reliable app for the users. Thus, users of such financial tools have the convenience of paying their credit card bills, downloading and viewing transaction statements, etc. via this app.

While credit cards bring with it the ease of payment, ease to track transactions, map out the spending pattern and identify any cases of fraudulence, availing it involves financial responsibility. Therefore, potential cardholders must take into account the offers from various lenders before settling and applying for an online credit card.

Things To Consider Before Applying For A Credit Card

 

  1. Your Spending Habits-Prospective cardholders must take into account their spending habits before applying for credit cards. The intended end-use of credit cards helps determine the type of card that one should avail. Catering to the customised spending habit of individuals, reputed lenders offer a list of credit card variants. Opting for a card variant that best suits your spending habits ensures that you make the most of your availed card. 
  2. Rewards Available on the Credit Cards-
    Credit cards come with –

    ~ Reward points – that can be redeemed for travel miles, cash backs, store purchases, etc. Based on your spending habit, go for a card variant that offers you the most benefit. For example, in case you are a frequent flier, travel cards are the preferred go-to for you, considering that it provides you with air miles that can later be redeemed. On the other hand, if you frequent the roads often, going for cards that offer fuel surcharge freedom is most suited, since it helps one to limit their spending on fuel.

    ~ Welcome bonus – Approaching reputed lenders like Bajaj Finserv and availing their Credit Cards via their credit card app – Experia can help gain access to multiple add-on benefits, viz. –

    • Free movie tickets and EMI financing,
    • Annual savings of up to Rs.55,000, and
    • Milestone bonus of 20,000 reward points upon spending up to Rs. 3 Lakh, and an additional 20,000 points on spending Rs.5 lakh a year.

    Such NBFCs also provide pre-approved offers which make the application process easier and less time-consuming for borrowers. These offers are available on numerous financial products like home loans, personal advances, business loans, etc. You can take a look at your pre-approved offers by providing a couple of essential details like your name and contact number.

  3. Your Credit Score-
    CIBIL score of the potential cardholder is essential, considering that it reflects one’s creditworthiness and hence helps determine his/her credit limit. It is the maximum spending limit on the card, exceeding which the user would need to pay the pre-set fines and charges. Having a higher CIBIL score of 750 and above makes a prospective borrower liable to a higher credit limit.
  4. Required Eligibility Criteria-
    Keeping in mind the convenience of the applicants, the minimum eligibility criteria required to avail credit cards are kept to a bare minimum –

    ~ Age in between 25 to 65 years
    ~ A minimum credit score of 750
    ~ Should not be a defaulter in any of the financial aids
    Such easy-to-meet eligibility criteria make applying for cards via a credit card app convenient and hassle-free. Availing the right cards can also enable individuals to have convenient access to interest-free cash withdrawal for up to 50 days, which makes such cards the best option during emergencies.

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