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Credit cards have become one of the handiest financial tools to be used in the modern world. Instead of withdrawing cash and lugging it around, credit cards have made our lives so much easier with just a single swipe. With a trove of benefits and ease of use, plastic money has changed many lives.
But applying for a credit card can initially seem like a lot of hassle. The challenge of going to a card issuing bank/NBFC or company mostly comes with the struggle of collating unending paperwork. Thankfully, digitization has made applying for a credit card super easy!
Now, you can apply for credit card using your phone from anywhere in the country! And that is why we will decode the 5 steps you can use to apply for a credit card online!
Why should you get a credit card?
Getting a credit card is one of the most hassle-free, convenient, and rewarding ways of spending money. The benefits offered by a credit card make it a lucrative financial tool to streamline your expenses and manage your finances.
Let us look at some of the top reasons why you should get a credit card:
1. You can easily use a credit card during emergencies when you do not have a lot of cash on your hands.
2. You can also use a credit card to build your credit history, which can help you access loans at an attractive interest rate in the future.
3. Credit cards allow you to make big purchases and convert them into EMIs to avoid dipping into your savings for making expensive purchases.
4. You get access to exciting discount offers, cashback, and rewards that can help you spend money wisely.
5. Having a credit card also makes you financially disciplined and teaches you how to budget and manage your personal finances.
6. Credit cards allow you to access several privileges like airport lounges and OTT platforms.
And when you get a credit card online, you save a lot of time dealing with credit card company representatives and completing a lot of paperwork manually.
Guide to applying for a credit card online
Earlier there was an option of applying for credit cards online, the process was completed mainly in person by the credit card company personnel. Often, paperwork was done and sent to the card companies via mail as well. With the process of applying for a credit card now online, one can finish the paperwork for the card in a few minutes.
Although the basic structure of applying for a credit card remains the same, digital applications tend to be quicker and more efficient. You can now apply for a credit card online in a mere 5 steps.
Step 1: Understand your credit report
A credit card is a tool that essentially allows you to make credit payments. In a way, you will enable the bank to pay on your behalf until you repay the entire amount to the bank. Hence, this becomes a financial product. The bank or the credit card issuing company must assess your repayment capability before issuing you a card with a particular credit limit.
To do this, card issuing companies assess your credit score. A credit score is a 3-digit number ranging from 300 to 900, representing your credit history. This number defines how promptly you’ve made credit repayments in the past, whether you’ve defaulted on your payments, and whether you’ve stayed within your credit limit or not.
It is essential to get your credit report and keep it handy when applying for a credit card online. Your credit score will help you understand whether you meet the eligibility criteria of a credit card company or not. Low credit scores can be a reason for the rejection of your application, while a decent credit score can help you get a features-laden credit card with a handsome credit limit.
Tip: A credit score in the range of 750 and 900 can increase your chances of getting a credit card online.
Step 2: Ensure you fit into the eligibility criteria
Each credit card company has its eligibility criteria for offering a credit card. This criterion differs for each company and may be negotiable if you have an excellent credit score. Let us explore some common eligibility criteria used by credit card companies.
● Age: Many Indian banks will issue a credit only to an individual in the age bracket of 21 to 65 years.
● Income: To ensure that the applicant has the means to repay the credit card bill, card issuers ensure that the applicant has a certain threshold of annual income. This also helps underline the credit limit of the cardholder. Many card issuers have further guidelines wherein they require the applicant to be employed with their current employer for at least a year.
Tip: Apply for credit cards only where you meet the eligibility criteria to avoid being rejected by the card-issuing company. Too many rejections can also hamper your future credit prospects.
Step 3: Go through your options
Start with understanding the type of card you need. Since everyone has differing needs, outlining what needs getting a credit card will solve. Understand if you want a basic credit card or a specific credit card that rewards you based on your spending habits.
Ideally, if you travel a lot, you will want a credit card that rewards you in air miles and gives you attractive offers on hotels, flight tickets, and ride-hailing apps. Or you could be looking at a credit card that offers exciting discounts on online shopping or restaurants. Some people look for specific credit cards that do not levy a fuel surcharge.
After you have defined your needs and understood the eligibility criteria of the card, go through your options and compare each parameter carefully. From reward points to cashback, from annual fees to complimentary features and discounts- assess all factors before choosing a credit card.
Step 4: Get your documents ready & fill out the application
When you apply for a credit card online, you will have to electronically fill out all the details. Additionally, you must keep all relevant documents handy to complete the application smoothly.
Some documents that you must have ready include:
● Payslip of the last 3-6 months
● Proof of income (Form 16 or income tax returns)
● Bank account statements for the last 3-6 months
● Aadhaar Card
● PAN Card
● A scanned passport-size photograph
● Address proof (Electricity bill, driving license, or passport)
The card-issuing company will use all these documents to assess your creditworthiness and eligibility for the card. In addition to this, these documents will also help you complete the KYC when you submit your details to the card-issuing company. Ensure that you have scanned copies of all these documents in one folder for easy accessibility.
Step 5: Get approval & complete verification
Once you have filled out the application online, you have to wait for the credit card company to get back to you with approval. When the company sends you approval for a credit card, they will require you to complete certain mandatory verifications before you receive your credit card.
Hence, it is important that you duly and carefully fill out your personal details. This will primarily include verifying the documents and details submitted by you and re-checking your credit history. This can be done either telephonically or by visiting your residential address as provided by you.
Your credit card will be sent to you by mail after all rounds of verifications have been completed by the card-issuing company. However, one crucial aspect you must remember is to read everything on the credit card user agreement before you sign on the dotted line.
Getting a credit card has never been easier. Now apply for a credit card online in under 2 minutes on IndiaLends!
Applying for a credit card online is one of the most straightforward processes. You don’t have to liaison with bank employees, nor do you need to arrange physical documents. All you need is a credible credit card issuing company that will set the ball rolling for you in a few minutes!