Now that you have applied for a credit card, are you still well-versed with the real world of the credit cards?
Most of the potential credit card applicants do not consider many factors while applying. As a result, some need to pay a higher interest rate on purchases, more joining fees and other fees.
Hence, this post has been created to help all potential credit card applicants to be aware of some aspects of credit cards. Going through the write-up will help them to use credit card confidently in the future.
- Your income
At the time of filling the credit card application form, your potential lender enquires about many aspects. It could be your age, the city of residence, type of employment and take-home salary. All these factors are considered vital to decide if you qualify for the credit card or not. However, out of all the elements, your income is the most important parameter. It is because it is what determines your repayment capacity of the credit card dues. An individual earning Rs.50,000 is more eligible for a credit card than someone earning Rs.25,000. It is because a higher income is an indication that you will face no issues in setting your credit card bills each month without any defaults. Also, people earning a higher income may be eligible to select from a list of cards. Hence, it may help them decide on one as per their lifestyle. On the other hand, people with a lower field income will have no options but to go for 1-2 options.
- Existing relationship with the bank
Would you like to get instant credit card approval from a lender? Do nothing, and fill out the credit card application form of a bank that you have a relationship! Yes, if you have an existing relationship with a bank, applying for a credit card with it can help you get quick approval. It is because the lender knows about your income and history of loans (if any). This way, if you have managed to keep a decent record with the bank, there will be no issues in getting an instant credit card approval from it. A bank that you may have an existing savings account, salary or a loan account, should be your pick.
- Your Credit Score matters
When it comes to the world of credit cards and loans in India, the value of the Credit Score matters much. Thus, other than your income, your lender will surely pull out your CIBIL Score while processing the credit card application form. If you have not been able to manage your Credit Score and if it’s below 700 or lower, you may not get an approval. On the other hand, if you have paid all current loan EMIs, credit card outstanding amounts on time, you will have a higher CIBIL Score. Thus, a Credit Score of 750+ or more out of 900 is considered ideal to hand over you a credit card approval without issues.
- You should know the purpose of applying for a credit card
There are many types of credit cards available with a lender these days, and you may be spoilt for choices when it’s the time to pick a credit card. Most of the applicants are unaware of the purpose of applying and pick a wrong card type. Hence, to avoid all such situations, you should ensure to know the exact purpose, and then only apply for a card. If you fly frequently, you will need a card offering higher air miles and fuel surcharge waiver if you have a vehicle.
Some of the major elements that you need to consider while filling out the credit card application form is now discussed.
You should apply for a credit card so that it covers your needs entirely. The selection should be based on your needs, income, and repayment capacity.
Do you want to apply for the Bajaj Finserv RBL Bank Super Card and enjoy many industry-first benefits? Bajaj Finserv offers some pre-approved offers on credit cards and an array of financial products such as home loans and personal loans.
You may explore your pre-approved loan offers now by sharing your basic personal details.