If you had recently started your pursuit of finding the most suitable credit card for yourself, then we understand the struggle that you are going through. All the alluring offers just add to the confusion. You might have already observed that every credit card has a different USP, some are interest free and there are some with cashback.
Things providers should know about
The bad news is that there are chances that you won’t be able to get the credit card that you want as the lenders are picky when choosing whom to issue the card. This has particularly become a problem after the credit crunch. Since, you are a new applicant with zero credit history; banks are likely to put you in the strict criteria. This is because the banks have the least idea about your repayment habits and they are only making speculations looking at your income and other things.
We would suggest you that you first get your credit report from a credit bureau, CIBIL or Equifax to name a few. If you have ever taken a loan and made all the repayments on time then it might make it easier for you to avail a credit card.
If you don’t get your card in the first shot then don’t lose hope as there has to be one card that might just fit your profile. But make calculations before applying to too many credit card providers. Doing this can leave marks on your credit history referencing to you as ‘credit-hungry’, which is the last thing you want to happen.
You should first reach to the bank in which you have your savings account. They have access to your transactions history and with its help they are more likely to accept your application. Though, the final outcome completely depends on your behavior in dealing with your savings account. If you were unable to maintain the minimum balance frequently, or there were not many new deposits, then you might be considered as a risky customer.
The market has a variety of credit cards that are solely aimed towards those people, who have bad or no credit history, but they come at the cost of increased and hefty annual percentage rates (APRs) and small credit limits. These credit cards are easy to avail and you are likely to be accepted instantly.
These are not the only cards and you have to research the market for the perfect credit card. Research thoroughly about the available credit cards and their APRs, credit limits, Terms and credit rewards!
With sensible usage these cards prove out to be a good add-on to your wallet. Making all the payments in the interest free period, and never exceeding the credit limit can help you build your credit score. You can avail the increased credit score to apply for more attractive offers down the lane.
You can also use some websites that allow you to compare different credit cards.
If your credit card is used wisely, then you will surely become financially sound and you can avail more credit in the future when you will need it.