How to Apply for a Credit Card?

Now-a-days Credit Cards are commonly used by salaried employees, professionals depending on their income stream and good credit history. Banks are forcing their customers to take Credit Cards who have good cibil score by re-paying all the debts on-time, . Credit cards allow to swipe within their credit limits specified by the banks at the time of credit card issue. Generally banks gives higher credit limits to push their business.

Like a coin has both flip sides, Credit cards has its own advantages and disadvantages. Credit cards are useful for those who have steady income and have the capability to repay before the billing date. Incase, the customer fails to repay before due date interest rate of 24-48% would be levied. Even the customer pays minimum bill, he falls under debt trap by paying huge interest of 3-4rs interest per annum.

So for those who are confident on repaying credit card bills in time where he/she can make use of reward points on usage can definitely apply for a credit card. Here is a process to apply for a credit card-

Off-line

1.Generally Banks check customers income stream, cibil score and purchasing power.

2.If Banks identifies the customer having good purchase history with sound financial health, they will call the customers and offer Credit Cards explaining the benefits, rewards etc.

3.If the customer is interested they proceed further and send credit card to the customer address explaining all the terms and conditions. Be aware of the clauses and sub-clauses, after agreeing to their conditions, customer can sign and submit at the bank branch

4.Some Private Banks collects documents manually by sending an representative to your address. It depends on bank-to-bank

Once you have signed all the documents, You are entitled to use the card within your credit limits.

Online

1.Now-a-days many private banks and third party sites(Policy Bazaar, Bank Bazaar etc)allows to compare the features of various cards and it’s features(Reward Points)

2.Customer who needs Credit cards may compare online and be genuine on their income levels, where the card issuing institution cross-checks with cibil database.

3.If found satisfactory, they issue credit card with surprising offers. Not only Private Banks, Government sponsored banks also offer online credit card issuance services, but they are not as responsive(Except SBI, all government run banks are backed in credit card business)

4.The only advantage between debit card and credit card is credit card allows to swipe/withdraw even you don’t have cash at that moment where as debit card allows you to swipe on the available balance in your a/c

5.The card issuance institution sets a deadline to repay the bill payment. Customer should be alert to repay on-time otherwise, as said before, 36-48% interest rate would be levied which downgrades your CIBIL score(A mandatory score to be maintained to avail loans from banks in future).

Thus Credit Cards have pros and cons, it is very useful for emergency needs at the same time if you failed to repay on-time you fall on the debt-trap.

If you have good income source and has capability to repay, go ahead, enjoy the benefits and make use of reward points for your needs.

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