Get Big Idea
Ideas To Change Your LifeStyle

Understand What a Credit Card Is and How to Apply for It

0 15

Although the nation holds 39.37 million credit cards as of June 2018, a significant fraction of the users is still unclear about what is a credit card.

Well, credit cards are one of the easiest ways to access instant funds when there’s insufficient cash in one’s account. The issuing financial company permits the cardholder to borrow funds to make purchases or meet other short-term monetary requisites.

A credit card, also known as plastic money, has several other advantages compared to its lookalike, the debit cards.

  • It’s a flexible and secure method of payment.
  • A credit card allows one to fund small or major purchases and convert the total funds into easier EMIs.
  • One can enjoy attractive discounts and offers, making purchases more affordable.
  • One can also earn high reward points on transactions using a credit card which one can redeem for gift vouchers, discount coupons, cash back, etc.
  • Most significantly, it boosts the cardholder’s CIBIL score and credit reports, making him/her eligible for loans in the future. However, he/she has to clear the credit card dues within time.

As you got a basic idea of what is credit card now, check out two essential facts to make the best of them.

Essential facts to know about credit cards:

  • Billing cycle, billing date and grace period

Most people in India have a misconception that credit cards lead to more debt. Well, yes; but only when one fails to clear the dues within the grace period.

Billing cycle of a card is the period between billings which typically ranges from 27 – 30 days. Every purchase, financial charge, credit, etc. during a billing cycle reflects on the bill generated on the billing date. Any financial activity which happens post this billing cycle will reflect in the next statement.

Now, grace period refers to the span of 25 – 30 days from billing date when no interest is levied on the total amount due if one clears the payment within the due date. Failing to pay off the outstanding amount not only attracts high interests but also affects one’s credit score.

  • Credit limit or credit line

Every credit card comes with a credit limit which is the maximum amount a user can borrow and spend on that card. Financial companies usually determine this credit limit based on the user’s present debts, income, credit history, etc. This encourages a user for planned and better financial management.

Choosing the appropriate card

Financial institutions offer different types of credit cards with unique features, designed for the customers’ requirements.

For example – Bajaj Finserv RBL Bank SuperCard is one of the most popular plastic cards in India. Its features include complimentary lounge access to airports, annual savings up to Rs. 55,000+, cutting-edge card security, easy conversion of purchases to EMIs, etc.

However, what distinguishes this SuperCard from the rest are the 3 industry-first features – interest-free ATM cash withdrawal up to 50 days, emergency personal loan with 0% interest up to 90 days and loan repayment in 3 easy EMIs.

How to apply for a credit card?

An applicant must ensure that he meets all the eligibility requirements before applying to avoid chances of rejection. Companies like Bajaj Finserv have minimal eligibility criteria including:

  • Applicant must not be a defaulter.
  • Must have a CIBIL score of at least 750.
  • Should be residing in the financial company’s operating area, etc.
  • Applicant should be within 25 to 65 years of age.

Once eligible, one can easily apply for credit card online without much hassle. Here’s a basic process.

Step 1: Visit the official website of the card issuing company.

Step 2: Fill up the application form online with all correct details.

Step 3: Receive your card post the approval of your application.

Bajaj Finserv provides exclusive pre-approved offers on their credit cards and a host of other financial products and services. Find the pre-approved offer for you by submitting only a few essential details.

Therefore, choose the right credit card and save more with every purchase. Strategic and responsible utilization of the credit card can make your purchases more affordable. So, choose the right card that meets your lifestyle demands and apply for one today.