Is it your first time that you are applying for a credit card and the task seems intimidating to you? Well, then this guide is your perfect ally in making the process easier.
We have broken down the process in to 5 simple steps, which are as follows:
- Choosing the perfect card
- Analyze your credit score
- Check your eligibility with online tools
- Review all the offers
- Complete the application
We have described all the steps below in detail.
- Figure out which card suits all your needs
The first step is to analyze which type of card will be perfect for you.
To choose the best card first figure out why are you looking for a credit card? If you want to pay off any existing debt then a 0% balance transfer card is the call for you, or maybe you are an avid spender and want some cashback or rewards on your expenditure then you might find reward cards your best friend.
You should use a systematic approach to cut down to your needs. Choose a credit card that fits your primary need completely as it is all about priorities.
- Find your credit score
The first thing that all the providers and lenders look for is your credit history. Your credit card has a major participation in lender’s filtering process of all the applications.
If your credit score is higher, then you are more likely to get any credit you are looking for. A lower credit score may fetch you a card, but with unattractive terms and conditions like higher rate of interest, lower credit limits and shorter interest free period.
Therefore, you should get your credit report from any of the credit bureaus e.g. CIBIL, Equifax and others. Check your credit score, if it is low then execute improvement steps and then wait to apply.
- Get help online
You might not want to blindly go applying for every credit card that you think is right for you as it will leave stray marks on your credit history. Therefore, it is wise to check your eligibility using some online eligibility checker.
- Understanding the game of APRs
You have to understand that you will not always get the advertised APR as they are just for advertisement purpose which are based on certain assumptions. You will be offered a personal APR from the provider that will be unique to you as per your credit history.
The law states that only 51% of the applicants must be offered the advertised APR. The clear implication is that a large number of applicants would never qualify.
Keep in mind that banks may offer you a higher rate of interest, but you can always deny the offer. Plenty of other options are also available out if you do the research.
- Apply for the card
Now, as you have finally figured out which credit card fills all your needs, the time has come to fill the application form and finally apply for it.
You should be able to apply online. Make sure all the information furnished by you is accurate and honest. If you feel uncomfortable doing stuff online then you will like to use the offline mailed form. The application form will be mailed to your correspondence address.
Another option is to fill the form over phone, the customer care executive will ask for all your details and a field agent will be sent for verification.
The last way is to directly barge in the office and fill the form there with the help of the executives there.
But it is a matter of fact that the best offers are available online only.
If your application is rejected then get your copy of credit file to understand why your application was rejected. Improve on the areas and apply after some time.
If you application is accepted then it should take around 10 to 15 days to reach you.