There are 2.8 billion credit cards worldwide; they’re ubiquitous – from buying groceries to booking flights, credit cards are used for many types of transactions.
Why you should have a credit card
Credit card debt and interest fees can make newbies stay away from using them, but if used responsibly, credit cards come with many benefits, like:
- Earning rewards
- Getting discounts for travel & hotel bookings
- Redeeming cashback on selected purchases
- Handling medical emergencies
- Mitigating unplanned expenses
- Building credit score
Credit card issuers also notify their cardholders on the purchases made; these notifications are shared via email or text messages and inform the cardholders on their existing credit balance and the accruing interests.
How to Apply for a Credit Card?
Initially, people had to apply for credit cards by going to the bank and filling an application. You can do the same thing today online; you don’t have to go to a bank anymore.
The first step is filling up the online application for the selected credit card, enter all personal information, after submitting the application, the applicant’s respective bank requests a few important documents, these include residential and ID proof and employment/business documents.
If you are issuing a new credit card for the first time, the next step involves the generation of a CIBIL (credit) score. For first-timers, the credit score is usually low, as the credit card regulatory authorities have no solid date on your payment performance, once your credit score is generated, you receive the credentials for your application.
In the next step, the application and the submitted documents are processed and verified by the banks. This is the most important part of the process, here your eligibility for a credit card is assessed, and the banks decide the credit card’s spending limit. [HB1] Once your application is approved, you get a call from the credit card issuer for verifying your credentials. Lastly, you get a visit from the banking officials for on-site verification at your residence, you’ll receive your new credit card15 to 30 working days.
Using your Credit Card responsibly
From the moment your new credit card arrives at your doorstep, make sure that you use it responsibly and have an effective repayment plan at the end of each month. Avoid crossing your credit card limit, pay in time and keep interests and extra fees to a minimum.
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