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Credit card serves you better
Credit card has changed the mode of monetary transaction and has made business and personal dealings much easier. In fact now the market is flooded with tons of credit cards. What is your opinion about credit cards? Are you using credit cards and why? At present credit cards are no longer considered as a product of luxury but it has become essential for individuals to have a credit card.
The great advantage of these credit cards is that it will not only offer you access to instant credit but also make the process of online purchases much more easier. There are several banks in India that offer a variety of credit cards that cater to the needs of people from all sphere of life. Obviously the features, benefits and interest rates differ in case of different credit cards.
At a Glance
- What you should disclose for credit card application
- Features of credit card
- Benefits of credit card
- How to apply for credit card
- Types of credit cards
- List of best credit cards in India
- Why credit card application can be rejected
Credit cards issuing banks in India
What you should disclose for credit card application
In order to have a complete credit card application, it is very important to give the following necessary information-
- Full name of the applicant
- Date of birth
- Permanent address,
- Phone number and email address
- Names of present and previous employers
- Gross annual income
- Information on other credit cards if any you have.
Features of credit card
There are different credit cards available in the market and features may vary from one credit card to another but there are some common features which are applicable to all credit cards. Let us have a look at some of them
Keep in mind that interest rate is charged on the balance which is overdue. The interest rate can range from 0% 79%. Again a late payment fee is levied in case the minimum amount as detailed on the bill is not paid.
The amount you can borrow or a cardholder can borrow will be as per the permitted credit limit which depends on the income earned and credit history related to past of the applicatnt.
Here the borrower gets a credit of nearly 50 days which depends on the date of the bill and not on the date of purchase of goods or services. The due amount has to be paid by the mention due date. There is also a grace period of some more days and if the amount is still not paid, interest is levied.
Individuals involved in credit card transactions
The applicant or the card holder
The bank who is issuing the credit card
The individual or company who is accepting payments made through credit card
The processing bank that undertakes all the transactions
Benefits of credit card
Are you not sure of the benefits of having a credit card, then surely you should know what the benefits are. Have a look at some of them
- If you are in a position that you have to use credit card regularly, then it is not a bad idea only if you know how to handle it properly. When you use your card quite often and pay the balance amount in full each month then you would surely build up an excellent credit rating. This implies that in future if you are applying for another credit card or loan there is a good chance of it being accepted.
- Having a credit card will come as great handy as it can be used worldwide and in cases where you don’t want to carry cash, this could be a viable option. It really helps in times of emergency.
- When credit card is used to buy online it gives a degree of online security. This is mainly due to the modern security and fraud measures which has come into effect. Nowadays all credit card transactions are closely monitored by the banks.
- There are some hotels and car rental business which insists on taking your credit card details as deposit a deposit. Thus if you have a credit card , it will really come useful when travelling.
- Credit card gives additional benefits like incentives to the card holder such as discounts on holidays; cash back offer or insurance cover for purchases done.
- Very convenient for borrowing for a short tenure of time as interest is charged only on the unpaid amount of the cardholder and any later purchases.
- Last but not the least it gives a greater degree of flexibility as there is no headache of travelling with cash.
- There is always a chance of theft and you may lose your cash. If you have a credit card there is no chance of theft and in case your credit card is stolen , report it immediately so that you can get a new one at a nominal fee.
- Many credit card companies offer reward when you use them. It can be in the form of cash back or discount in the form of airline tickets. Thus use of credit card gives you an opportunity to actually earn money.
- If you use credit cards you can get insurance on purchase for a certain time period which means if something gets lost after you purchase it, you have a chance to get your money back. But if you paid in cash, your cash is lost forever.
How to apply for credit card
Credit cards are issued by different banks and each bank offers different types of credit cards. But there is more or less a common procedure for applying for credit card
- First chose the type of credit card that suits your needs and then apply ofor one
- Fill in the application form along with a photograph and submit it
- Provide the identification documents for proof and verifications. They are proof of income, bank statement for the last 6 months.
- The bank will verify the details submitted in the application form
- After verification if the bank is satisfied and all the documents are in order the company would send the credit card in 3 to 4 weeks from the applications submitted.
- The card is sent by courier and it is delivered only to the applicant of the card and no other.
Types of credit cards
There are different types of credit cards for which you can apply. They are
- Gold credit cards
- Silver credit cards
- Business credit cards
- Balance transfer credit cards
- Premium credit cards
- Cash back credit cards
- Low Interest credit cards
- Balance transfer credit cards
- Lifetime free credit cards
List of best credit cards in India
- Indian Overseas Bank Visa International credit card
- Axis Platinum card
- Gold international card
- Union Bank Of India Silver card
- Vijay Bank Visa Gold Credit card
- HDFC Silver credit card
- VIJAY Bank MasterCard Classic Credit card
- Syndicate Global Classic Credit card
- HSBC Platinum card
Why credit card application can be rejected
Your credit card application can be rejected for several reasons. Have a look at some of the reasons
- The form you have submitted is not complete and you have by mistake skipped a few information to be filled up. And credit card companies need detail information about you.
- You may have a good job or income but your credit card application can be rejected if you are under the age of 18. This is mainly because if a minor defaults the company cannot take legal action against. But in some cases it may be possible if a parent cosign and include his or her name on the account.
- Your credit card application can be rejected if your annual income falls below the level prescribed. The credit card issuers have some minimum income requirements which they always do not disclose in the applications.
- If your debt to income ratio is high then also there is a chance of your application being rejected. Good payment history and steady income is a must. Those applicants who have a high debt ratio are considered as risky applicant.
- If you have an unstable employment history then also there is a chance of being rejected. If you are unemployed or change job frequently it is not a good sign for application for credit cards. On the other hand if you wait for at least six months before you apply for a credit card that would prove a good chance of getting a credit card easily.
- In case of any failure to clear the past loans or any other payments in the bank concerned.
Credit cards issuing banks in India
- ICICI Bank
- American Express
- ABN Amro
- Axis Bank
- Bank of Baroda
- Canara Bank
- Deutsche Bank
- Barclays Bank
- Standard Chartered
- Kotak Mahindra
- Bank Of India
- Standard Chartered Bank
- Yes Bank
The advent of credit cards is a great jump in terms of security and safety of monetary transactions. It definitely gives the freedom to get what they want without carrying cash. Surely at one point of time it was a luxury item but no more. If handled properly it has many uses in our day-to-day life. It is a safe means to buy online.
Once you have finally decided which credit card to choose and from which bank, fill the application with great care so that your application is not rejected. Obviously applying for a credit card is an exciting event but knowing the exact process and the conditions associated regarding application for credit cards will ensure that there is no rejection of your application.
Your To-Do List
First you have to decide on the type of credit card which will satisfy your needs. There are different types of credit cards and you have to study each of them separately to understand the best card for your needs.
Before choosing credit cards look and compare the rates and benefits of the credit card of different banks.
Get to know very well what information you need to disclose for getting a credit card
Fill up the application form with all the relevant information and leave no boxes vacant, otherwise the application may be rejected
Along with the application form submit proof of income, statement of bank account for the last six months and also a photograph. The bank will examine all the documents and if found in order issue a credit would card which will be sent to you within 3 to 4 weeks from the day the application has been sent.
How we help our customers
Applying for a credit card needs lot of preparation and only experts can guide you through the process. We will make every move on your behalf to make your credit history sparkle and brighten the chance of getting a credit card.
There are different credit cards available and we can guide which one will suitable for your needs
We have years of experience of in dealing with credit cards and have ensured many successful applications for credit cards in different banks. We would take care to see the application form is duly filled up and submitted with all the necessary documents to have the credit card issued in your name. So in a way we save your time and give you what you want more. A perfect credit card of your choice.