Credit cards have changed the way Indians shop since their introduction in the country back in the 1980s. However, their popularity has soared in recent years, and all the metrics from leading banks and other financial institutions support the same. The reason behind this is obvious- the benefits it offers are amplifying its demands.
But the questions here are how do you apply for one, and how do you get the best credit card interest rates? Let’s find out.
How to Apply for a Credit Card?
Like any other financial tool, there are two ways to apply for a credit card, online and offline.
Here is a step-by-step guide on how to apply for a credit card online.
Step 1: Visit the official website of the bank.
Step 2: Go to the credit card section and find the card you are looking for.
Step 3: Click on ‘Apply Now’.
Step 4: Submit all the personal and professional details in the online application form.
Step 5: Scan and upload the needed documents.
Step 6: Double-check all the details and then submit it.
After this, the bank will review your application, and if it goes well, you will get the approval via your official contact details.
To apply for a credit card offline, you need to visit the nearest branch office of your preferred bank. There, you must fill out the form, submit the documents, and await approval.
Usually, credit card approval takes time, but if you apply for an instant credit card, then you are likely to receive it in some time and online. A point to note here is that you get a virtual version of the card; the physical one will arrive later via post at your registered address.
Now that you know the application process for the best credit cards let’s understand how you can get the best possible terms for it.
How to Get the best Terms for a Credit Card?
Here are some tips on how you can get the best interest rate and other favourable terms with a credit card.
Improve your Credit Profile
Your bank will consider your credit profile while reviewing your application. So, to get the best interest rate and other facilities, you need to improve your credit profile. This will include increasing the credit score and clearing the credit history of any defaults. Also, if there are any mistakes in your credit report, you need to take care of them as well to better your overall profile.
Meet all the Eligibility Parameters
To successfully get the best credit card deal, you need to meet all the eligibility parameters set by the bank. This will include meeting parameters associated with your income, age, nationality, city of residence, etc.
Now, failing to meet them can hinder this process, and you will have to face delays in the approval or rejection in some cases.
Increase your Repayment Capacity
Another important aspect that you need to take care of to get the best offers and interest rates is increasing your income. Since credit cards will require you to pay off the debt, the bank will check your repayment capacity. So, if you can show the additional source of income besides your regular ones, it will help.
Doing so will increase your repayment capacity, and you will be able to convince the bank to give you the best possible terms.
Opting for a Secured Credit Card
Last but not least, if you want to get a quick approval credit card against a low-interest rate, then opting for a secured credit card is a great way to do it. Under this facility, you can use an FD with your bank as a mortgage and take a credit card against it.
Now, even if you default on payment, the bank will have the FD liquidate and recover its losses. Hence, the favourable terms that you will receive.
Checking the credit card interest rates is not the only point while applying for this payment card. You must review the repayment terms and additional charges of a credit card to avoid making a decision that will hurt your financial interests in the coming days.