Vikram was a little hesitant while applying for his first credit card because he knew that even a small mistake could cost him a lot of money. For this reason, he decided to wait and research regarding the best credit cards available in the market. This is actually what a user needs to do as acquiring a credit card can prove to be one of the most intimidating tasks ever. When you apply for credit card, the bank does a complete background check on you and ensures that you have a good credit history. If they find your creditworthiness and credit score to be good, you can get your credit card in no time. In case you fail to fulfill the eligibility requirements, you might have to start afresh which will cost you a lot of time and money.
In actuality, there are various things to know about credit card application and a user needs to ensure that he/she keeps a track of all the essential pointers so that a good credit card can be acquired.
Information and Documents Required
Anyone who wants to apply for credit card needs to provide certain information and documents to the bank so that their application can be processed smoothly.
• Full name and birth date
• Email address, home address and address proof
• Information on present and previous employers
• Key information on other cards you hold (If any)
• Income proof
• Salary slips
• Bank account statements
• ID proof
The photocopies of all such documents are to be submitted along with the application form.
These documents must be duly attested by the borrower and any failure in this may result in the application getting rejected.
Comparing the Interest Rates and Special Features
The process of applying for credit cards usually starts when you choose a bank for granting you credit card services. This is also the most significant step that you’ll take because you have to share all your personal details with the bank that offers you a credit card. There are innumerable factors which are to be taken into consideration such as the reward points offered by the bank, the cash back discounts and the processing charges levied by the bank. As a smart user, you must apply for credit card only when you’ve thoroughly gone through the different credit card schemes available in the market.
Have a closer look at the top features being offered by the banking institutions providing credit cards.
| Banking Institution | Special Features |
| HSBC Credit Card | Domestic flight ticket vouchers, movie ticket vouchers, enhanced rewards program |
| American Express Credit Card | 5X membership points, exclusive dining offers, exceptional reward point programs |
| ING Vysya Credit Card | No annual fee, 0% fuel surcharge, double reward points for international expenditures |
| SBI Credit Card | Discount deals on hotels, best airfare deals, car rental deals |
| ICICI Credit Card | Discount on airfare, exclusive reward points programs |
As on 18th March, 2014
Go for a credit card that offers a moderate limit :
Some credit card companies offer the kind of credit history required to get approved for the listed credit cards. If you’re planning to get your first credit card, it is crucial for you to choose a card which offers a moderate purchase limit. Usually, people tend to spend unabashedly when they get credit cards for the first time. Avoiding such a situation will help you in not just choosing the right card but also using it in the right manner.
Don’t take denials too seriously
Anyone who applies for a credit card must stay aware for the impending rejection. So, you should never take such denials seriously, but instead you must focus hard on improving your credit score so that you don’t get rejected the next time. Find a secured credit card which comes along with innumerable reward points and exclusive programs such as free airline and movie tickets.
The process of applying for a credit card can be made much more convenient if you already know the different schemes being offered in the market.
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