Credit cards are the best way to pay for your expenses, such as groceries, rents, etc during a cash crunch. When you apply for a credit card, it comes with a credit limit that you can use to make purchase transactions. You do not have to worry about interest rates, providing you make on-time repayments.
While looking for the best credit card, you get numerous options which can be overwhelming sometimes. Each credit card in the market comes with specific features and benefits based on specific requirements. By exploring the options available, you can get a new credit card that best fits your spending habits and credit situation.
Here are the top steps to get the best credit card in India:
Check your credit score
Your credit score is the most crucial aspect of your new credit card application. It is a three-digit number that usually ranges between 300 and 900. It determines whether or not you qualify for a credit card you are applying for. Before approving your credit card application, banks check your credit score to determine your eligibility to understand whether or not you are a credit-worthy person.
As a rule of thumb, the higher your credit score, the greater are your chances of securing a credit card that comes with maximum features and benefits. The minimum credit score requirement to apply for a credit card is 700. Maintaining any score above the said range will get you better deals. So, it is imperative to check your credit score before applying for a credit card. This way, you will find out if you qualify for your preferred credit card. If not, you can always apply for a secured credit card to build your credit.
Pick the type of credit card you need
Credit cards can be divided into three categories – 0% APR credit card, rewards credit card, and credit cards to build your credit. The best credit card for you is the one that best caters to your needs. For instance, if you are a frequent traveler, you may want to apply for a travel credit card that comes with travel insurance and complimentary lounge access.
- 0% APR credit cards: As the name suggests, 0% APR credit cards significantly save you money on interest. It can be a great match if you have to use your credit card to meet emergencies or if you carry a balance from time to time.
- Reward credit card: It enables you to earn rewards, cashback, and bonuses on every transaction you make with your credit card. A rewards credit card generally has higher APRs, but it offers greater sign-up bonuses.
- Build credit card: It best suits borrowers who are new to credit cards. It comes with a lower credit limit and gradually increases as you learn to manage your credit card. It is the best way to build your credit score.
Compare your credit card options
After the type of credit card based on your needs and preference, it is advisable to compare your options and choose a credit card that offers the best benefits available in the market. It would be wise to get a credit card that offers an interest-free period to avail of. Some issuing banks also offer no joining fee and no annual fee credit cards.
While comparing your options, look for new credit card products that can earn you maximum cash backs, rewards, and bonuses. There are credit cards that offer discounts on select merchandise, air tickets, hotel stays, and dining. The more rewards and cash backs you get, the more money you will save while using your credit card.
Apply for the credit card you want
After choosing the credit card you need based on your credit history and preferences, you will need to apply for one online. Whether you want to apply for a student credit card, 0% APR credit card, or rewards credit card, here are the simple steps to follow:
- Visit your issuing bank’s web portal and click on Apply Now.
- Provide your information. Your bank may ask for your personal information, mailing address, and financial information.
- Upload the required documents, such as Aadhaar Card, Passport, PAN Card, Salary Slips, Form 16, and ITR.
- Read everything before submitting your application.
The bank will take some time to assess your application and run some verification checks. If everything is in proper order, you can get your credit card within a few days. If not, it usually takes about 10 to 15 days to process your new credit card application.