6 Tips to Help You Choose the Right Credit Card

by Shailendra Kumar Tech Reviewer

From the state-of-the-art security while transacting to extravagant offers and rewards, credit cards have shaped the way you make purchases. A credit card also offers you peace of mind in an emergency as it allows for emergency withdrawals or even a loan in a cash crunch.

However, choosing the right credit card, which maximizes your purchasing power, and getting approval for it can be tricky. So, if you're wondering how to choose the right credit card and what to expect when you apply for a credit card online or offline, read on for some practical tips.

Check credit card options and know your needs

Before you apply for a credit card, an important decision you need to take is the type of credit card you want. Based on your lifestyle and common purchases, you can choose a credit card that helps you save more. One example are fuel credit cards that help you save money when refuelling your vehicles through cashback offers and fuel surcharge waivers. Apart from the benefits they offer, your research should include information on the annual fees, joining fees, interest and additional charges. This will help you sign up for a card that is affordable.

Check and improve your credit score

Your credit score is a metric between 300 and 900, and the higher your score, the higher your chances at approval. Simply put, your ability to manage credit determines your credit score. Too many loans or unpaid dues will harm that score and make you an undesirable candidate in the eyes of issuers.

Checking your CIBIL score gives you valuable insight. Credit card issuers are very particular in approving a credit card and assigning a credit limit, and your credit score plays a key role in that process. You can improve your credit score by making regular payments on loans and EMI purchases and servicing a long-term loan consistently.

Check the issuer’s eligibility requirements

Ensure that you’re eligible by checking the credit card requirements set by issuers. Most issuers require you to be over 18 years of age, be salaried or self-employed and meet the minimum annual income requirement. The specifics vary across issuers and ensuring that you meet them is crucial.

Provide all the necessary data and documents accurately

All the information you submit when you apply for a credit card is thoroughly cross-checked and verified. Mismatches will raise concerns from the issuers point of view and may even lead to your application being rejected. To conveniently avail of a credit card, apply online.

The online forms ensure that all the mandatory information is filled in before you proceed. Credit card issuers like Bajaj Finserv have further simplified the credit card application process for the Bajaj Finserv RBL Bank SuperCard by letting you check your pre-approved offer online and at the click of a button.

It is also beneficial that you prepare all the necessary documents that you need to submit before your credit card is approved. The application has a standard requirement of documents as follows:

Identity and age proof
Address proof
Income proof
Pan Card
Form 60

Refrain from making multiple credit card applications at once

Issuers inquire into your credit report whenever you apply for a credit card. These inquiries are referred to as hard inquiries. Multiple hard inquiries into your credit report hurt your credit score and raises concern with issuers as you’re deemed credit hungry. It is advisable that you wait for a minimum of 6 months between applications to avoid such a label.

Apply with an issuer you have a relationship with

When picking a credit card issuer, it can be beneficial to apply with an issuer that you already maintain a relationship with. A bank that you already maintain an account with is familiar with your spending habits and your ability to make payments. The length of the relationship can also be a factor in securing better credit limit as they have a better understanding of your finances. This puts the issuer in a favourable position to gauge the amount of risk they can take by lending to you.

Keeping these tips in mind before you apply for a credit card will ensure that you have your bases covered. A well-serviced credit card will help you build your credit score, and help you save money and access deals. Credit cards such as the RBL Bank SuperCard is among the top-rated in the country for this very reason. The SuperCard gives you the benefits of a credit card, EMI card, loan card and cash card all in one, effectively reducing your need to apply for those types of credit cards separately. Don’t miss out and check your pre-approved offer online to enjoy a hassle-free approval!

The minimum payment on credit cards

Credit card companies allow you to settle on a minimum amount on the overall monthly card bill. Always calculate if you're able to pay this minimum bill to keep your current account active and maintain your CIBIL score.

Following these 6 tips will ensure you avail your first credit card easily and are able to utilise beneficially as well. Apart from this, you must also know how to use a credit card wisely to gain maximum advantage.

When you go for a credit card apply online, you’ll be asked to produce your income statements. Your income directly reflects your ability to repay what you borrowed. If you don’t have sufficient income, you must have to wait to turn financially stable before you apply for a card.