The demand for credit cards has been increasing significantly in the last few years. Limited disposable income leads individuals to lean on various types of personal borrowings to fulfill their financial obligations and pay for expenses. Several financial organizations have thus introduced a wide range of credit cards to meet this increasing funding need. Thus, applicants should pay attention to a few important aspects while narrowing down their options.
Other than credit card interest rates, borrowers should be careful about multiple application submissions and frequent switching of debt instruments. Details like application rejections are recorded in an individuals’ credit history impacting it negatively. These credit habits can pull down the rating as well as the chance of availing future financial assistance.
Thus, here is the checklist that individuals should consider before applying for a credit card for improved chances of approval –
- Existing debt amount
To reduce the possibilities of application decline, individuals should be aware of their current debt situation. Any poorly-managed credit account or excessive debt can decrease the creditworthiness of borrowers and be among the reasons why your credit card application can be rejected.
Lenders may also levy higher credit card interest rates, provide lower credit limit, etc. with such debt facilities or may deny serving with any lending advantages to these profiles.
Thus, individuals should minimize previous credits or loans and make timely payment before applying for a new one to avail the maximum benefits of cards.
- Reason for obtaining a card
Nowadays, many credit cards are customized as per different spending habits. Thus, aspiring borrowers should assess their purpose to avail of a card along with their purchasing pattern to perform a methodical search for a suitable card. With this evaluation, individuals can efficiently concretize their searches with appropriate information.
Like, applicants want to avail a credit card for generic shopping and wish to carry a balance, they should prioritize their search for cards with reward points on most transactions.
Similarly, borrowers who spend mostly on fuel or gas must consider a fuel credit card that can offer incentives on fuel transactions. Competitive credit card interest rates should also be a lookout too.
- Loyalty points and other reward programs
Reward programs are of the most attractive advantages of credit cards. Depending on financiers and card type, it offers multiple promotional benefits like loyalty points, discounts, vouchers, cash backs, etc. So, individuals need to look for cards like the Bajaj Finserv RBL Bank SuperCard that provides some most useful reward programs of all.
When it comes to APRs or Annual Percentage Rate, individuals should undoubtedly look for relatively lower credit card interest rates. Generally, APRs are not applicable if borrowers repay the full amount before the bill payment due date. However, instances like carrying a balance or withdrawing cash invite high-interest charges.
- Various other fees and charges
Lenders also impose different penalties and charges like annual fees, processing fees, balance transfer fees, etc. So, applicants should be acquainted with these fees beforehand.
- Qualifying criteria and document requirements
Individuals have to meet specific eligibility parameters and furnish several documents to obtain credit cards. While acknowledging the process of how to choose the right credit card, applicants should be completely confident about their eligibility.
The qualifying criteria consider an applicant’s age, citizenship, income, and credit score that must be above or around 750. Moreover, individuals are also required to submit some essential documents like salary slips, PAN, financial statements, and KYC documents like Aadhaar, driving license, voter ID, passport, etc.
Individuals should opt for lenders like Bajaj Finserv who keeps documentation requirements simple.
This financier also brings pre-approved offers which make the application process quick and convenient. These offers are also applicable to other financial products like business loans and personal loans. Individuals can look at their pre-approved offer by providing their phone number and name.
Lastly, whether borrowers opt for offline or online applications for credit cards, they need to compare the available option based on the aspects mentioned earlier to find out the right choice. Thus, they should know all the important things before applying for a credit card and eventually make an informed decision.