With a credit card, you can fund your short-term financial needs conveniently. Further, you can gain from a variety of cashback offers, reward points, and other benefits like free airport lounge access. However, when you apply for a credit card, issuers expect you to qualify for it by meeting certain credit card eligibility criteria, based on which they sanction you a card and decide your credit limit. Apart from checking these requirements beforehand to ensure you get approval, consider the following tips to increase your chances.
- Research and short-list the best credit cards that suit your needs
Whether you are a student or a frequent traveller or someone who wants to use the credit card regularly for online shopping, there is a card to serve your specialised needs. So, shop around and compare various credit cards available in the market and choose the one that meets your needs the best. Just watch out for unrealistic credit card offers by reading about the associated charges before you make an application. Consider applying for a credit card offered by a genuine issuer who offers a bevy of additional benefits to suit your pocket.
Some of the lucrative benefits of all the SuperCards are: You can withdraw from your sanctioned credit limit at any ATM using the SuperCard. You will only be charged a processing fee of flat 2.5% and no interest for up to 50 days on these transactions. Also, you can convert purchases above Rs.3,000 into easy EMIs and repay them comfortably. Added to these, you can save the stress and meet any financial emergency by converting your card’s cash limit into a personal loan. You don’t have to pay interest on such an emergency loan for up to 90 days.
- Check the eligibility criteria to apply for a credit card
To avail a credit card of your choice, you have to qualify for it basis the issuer’s set terms and conditions. Such credit card eligibility criteria may vary across financial institutions. The common ones are listed below.
- You should have a credit score of at least 750.
- You should be aged between 25 and 65 years.
- Your credit report must be clear of outstanding dues and credit defaults.
- You must be an existing customer of the financial institution.
- You must have a steady income.
- Get the paperwork in place
Your issuer may require certain documents to validate your eligibility for the credit card. So, keep the following documents handy in order to apply for a credit card and make your application process faster and more convenient:
- Identity proof like PAN Card, Aadhaar Card and others.
- Address proof like Utility Bills and Driving License.
- Income proof like Form 16, salary slips, and bank statements.
- Passport-size photographs
Note: Depending on the issuer, you may also have to furnish additional documents.
- Start or maintain a business relationship with the issuer
Issuers usually give preference to existing customers. So, having an account or starting an investment with an issuer or shopping at a retail outlet partnering with an issuer can get you a good deal and accelerate the approval process. This is because the issuer will have already verified your financial capacity.
- Refrain from applying for multiple cards in a short timeframe
Sometimes, you may apply for multiple cards thinking that you may be approved for one. However, this further accelerates your chance of rejection. Every time you apply for a credit card, the issuer runs an enquiry with a credit rating agency. Thus, applying for multiple credit cards simultaneously or within a short time-frame will reflect badly in your credit report and indicate that you are credit hungry. Instead, check the eligibility criteria and apply for one credit card that you are likely to be approved for.
- Credit cards offer cash-advance
Credit cards are equipped with a facility called cash-advance. With this facility, you can use your card to withdraw money from an ATM. This is a sub-limit to the credit card limit and differs across cards. For instance, an entry-level card has a lower cash-advance than a RBL super platinum credit card. It’s essential to note that cash-advance must be availed only in an extreme situation as it’s very different from a non-cash transaction.New-age credit cards such as the Bajaj Finserv RBL Bank SuperCard offers interest-free cash withdrawal from ATMs for up to 50 days, charging only a processing fee of 2.5%.
- Credit cards offer reward points
Credit cards offer reward points on every transaction. These points can be redeemed later to avail discounts on purchases made. Some points can also be converted into air miles that can be traded in for availing travel perks.
While some points have limited validity, others are valid for a lifetime. Some credit cards also gives you the opportunity to earn up to 20,000 reward points as a welcome gift.
Consider these tips before applying for a credit card and work on any shortcomings that you may have. Moreover, you can use these offers to avail other financial services and loans to meet your needs.