Credit Card Application: Everything You Need to Know
A Credit Card is one of the most efficient tools for making purchases. However, it has numerous other benefits as well. It can help build a good credit history and favourable credit score for you, thus helping you procure loans with ease. It can offer unmatched convenience while you’re travelling, thanks to its worldwide acceptance. Moreover, it can also help you save money due to the numerous Credit Card offers online which entail exciting cash backs and great discounts.
It is, therefore, a great decision to Apply for a Credit Card at the earliest possible. However, before you do, here is all that you need to know before filing your Credit Card application.
In order to get a Credit Card, you will be required to meet certain financial requirements. To begin with, you need to be an adult with a steady job or a steady source of income. If you’re employed, you will be required to submit your pay-slip as a proof of income. Alternatively, if you run a business, or are a professional, you will need to submit your income tax returns and your bank statements as a proof of income.
Thanks to the technological advancement, you can now easily apply for a Credit Card online. This is usually a simple, step-by-step process, offered by online marketplaces like www.mymoneymantra.com, the portal of the bank or the Credit Card company that you are applying. In order to apply, you will be required to scan/upload the documents mentioned above, in addition to –
- Your Date of Birth
- An Address Proof ( government issued identity proof )
- PAN Card
Once your application is duly complete, you may need to wait for a few days before the application is approved, and your credit card is sent to your registered address. In the meanwhile, if you wish to check your application status, you can do so by following steps –
- Log in to the official portal/Credit Card company that you have applied to.
- Find the ‘Track Application’ or a similar tab, and click the same.
- Once there, you may be required to fill in one or more of the following –
- Application Number
- PAN Card number
- Form number
- Date of birth
- Next, click on ‘Submit’.
- Here, you’ll be able to see the status of your Credit Card application form.
If need be, do feel free to call the issuing company or the bank to check the status. You can also visit the establishment in person.
The process of online application for Credit Card, and for checking the status, may slightly differ from one financial institution to another.
Low Credit Limit
Credit Limit is the maximum amount a Credit Card company allows a borrower to spend using a single card.
When you apply for your first Credit Card, you should expect the company to offer you a fairly small credit limit. This is done due to two reasons –
- For you to understand the use and management of a Credit Card, and remain well within your ability to repay.
- For the issuing company to minimize its risk since you do not have a credit history that can prove as a guarantee that you will repay the company.
Your credit limit may also be low due to the fact that your income is on the lower end. For instance, if you have a part-time job or an entry-level job, or a new business, chances are your credit limit will be limited by your own income.
Your first Credit Card will become a part of your credit report. The company/bank which issues you the Credit Card will report your monthly card usage to credit reporting agencies/credit bureaus. This report will constitute for your credit history, and in the long run, will contribute towards your credit score. If you use your Credit Card sensibly and repay your bills on time, you can enjoy a favourable credit history. This, in turn, will help you procure loans, at minimal rates of interest.
Moreover, it will help your other applications for Credit Cards get approved easily.
Credit Utilisation Ratio (CUR)
CUR refers to Credit Card usage with respect to the maximum spending limit. For instance, if the credit limit is 1,00,000 and you spend 70,000 in a month, your CUR will be 70%. The CUR will reflect your spending habits as well as your credit managing ability.
A high CUR indicates that you are consistently in a cash crunch or are a compulsive spender. None of these help your credit history. Hence, it is advisable that you maintain a relatively low CUR. As a matter of fact, it is advisable for you to maintain a CUR of 30%.
Moreover, you must ensure that you don’t exceed your credit limit, under any circumstances.
Now that you know, all that there is to about Credit Card application, you should apply for the same right away!
Don’t know where to get started? Well, let our Loan Specialist help you fill the application, based on your needs and preferences. Simply visit us mymoneymantra or call our Loan Specialists toll-free at 18001034004 for further information.
To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.
Talk to our Loan Specialists toll-free at 18001034004 to know more about our products and offers.