6 Questions to ask yourself before applying for a credit card
The most convenient payment tools that facilitate users to carry out cashless transactions. Besides eliminating the hassle of carrying cash, it also comes with other advantages. For instance, users can use it responsibly and make repayments in time for a positive credit history build-up. They also offer other perks such as attractive reward programs and cash backs, which enable individuals to save a substantial amount annually.
Nonetheless availing the card is an important financial decision. Hence, before opting for a credit card apply online, you should ask yourself the following questions –
Why do you need a credit card?
Before opting for a credit card, ask yourself why you need a credit and how you are going to use it. There are different credit card types available for you, and you should opt for one that best compliments your spending habits and requirements. It is because these cards offer attractive reward programs, whereby cardholders can make specific transactions to accumulate accelerated reward points.
For instance, if you require a credit card to purchase big-ticket items, you should apply for one that allows EMI payment options.
Similarly, if you purchase fuel frequently, you should opt for a credit card that provides reward points redeemable for future discounts at fuel stations.
How much credit do you require?
To understand how much credit would suffice, take into account your spending habits, monthly expenses, and your repayment capacity. For instance, if you travel frequently and use your credit card to pay for hotel bills, flight tickets, fuel refilling, and so on, opt for a credit card with a higher credit limit.
Are you eligible for a credit card?
When planning to apply for a credit card, you must first check whether you are eligible for one. It is because your credit card application can get rejected if you do not meet the eligibility requirements. The basic eligibility requirements that one must meet before opting for a credit card apply online process are as follows –
- Applicants should hold a credit score of 750 or above.
- They should not have any records of default in payments.
- They should be residing citizens of India.
- Applicants should also be within the age of 25 – 65 years.
Eligibility requirements may, however, vary for each lending institution. Hence, you must check the eligibility criteria as specified by the lending institution selected before applying. Lenders like Bajaj Finserv keep their eligibility requirements to a minimum.
They also provide pre-approved offers to existing customers for a hassle-free and quick application procedure. Apart from credit cards, these offers can also be availed on other financial products like personal loans, business loans, etc. To check your pre-approved offer, provide only your name and contact information.
Do you Have Enough CIBIL Score
If you are planning to have a credit card, then check your CIBIL score first. A minimum of 750 CIBIL scores is suitable for one looking for a credit card. This is a standard number that all the banks or NBFCs’ have decided. However, some of the organizations also there will be as well, who can offer you their credit card services at CIBIL score below that number.
But still, it would be suggested that have a credit score of a minimum of 750 because of several reasons. It means you will be eligible for top credit cards. Having a higher score will let you serve a higher credit limit. Later on, not only these, your card will be supported at lower interest rates.
Do you need online fraud protection for a credit card?
The increasing dependence on virtual payment platforms has also given rise to cybercrimes. Thus, if you are someone who carries out a lot of transactions online, you should opt for credit cards that come with robust security features. For instance, Bajaj Finserv RBL Bank SuperCard comes with robust security integrations to check losses due to unauthorized usage for cardholders.
How much Interest do you need to pay?
With the payment of your credit card bill amount in full before the last date every month, interest would not be charged. Nevertheless, it may happen that you failed to pay the amount in time or put it off due to financial hurdles. credit card with competitive interest rates can help reduce additional charges.
Alongside this, you should also be aware of other fees payable before going for a credit card application online. For instance, if you miss the due date on your credit card bill, you need to pay late payment fees.
Apart from these questions, other important things that you should know before applying for a credit card include application procedure as well as the documents required. Moreover, remember to compare lenders before making any final decision regarding the credit card application.
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