When you are planning to apply for a credit card, you should be acquainted with a few important points. Online and offline are two ways to apply for a credit card.
If you choose to do it online, all you must do is visit the issuer’s official website, follow the set instructions, upload the necessary documents, and submit your application.
If you choose to do it offline, you will only need to visit your nearest branch with copies of the necessary documents and make your credit card application.
Qualifying for Credit Card Application
You must meet the eligibility requirements to qualify for a credit card. These requirements may vary depending on different organisations. While this is true, there are some things that remain constant across all financial institutions in India. These include:
- You must be an Indian citizen
- Your credit score must be at least 700 and above
- You must have a clean credit record for at least 6- months
- You must be 21 years old and above
- You must have a minimum income of Rs 20,000 per month
Credit Card Application: Documents Required
To successfully apply credit card, there are several documents you must submit along with your application. These include:
- Identity proof; PAN card, voter ID, Aadhaar card, passport, driving license
- Address proof; voter ID, Ration card, electricity bill, driving license
- Income proof; income Tax Returns File, form 16, latest pay slips
- Age proof; voter ID, Aadhaar card, passport, birth certificate
- Bank statement for at least 2 or 3 months
- Proof of business where applicable
Credit Card Application: The Process
Following the proper procedure is essential when applying for a credit card. Below is a step-by-step guide.
Choose your Ideal Card
Different institutions have different types of credit cards for varying purposes. Some credit cards are ideal for business, others for entertainment, shopping, travelling, etc. Credit cards for food are perfect for paying for meals in hotels, restaurants, and online food deliveries.
Before you apply for a credit card, find out what you want first, explore your options, and choose a credit card that works best for you. Also, remember to confirm the fees and charges applicable to that credit card before you decide.
Make your Application
Once you choose the type of credit card that suits you, now you can make your application. As mentioned above, you can apply for a credit card; either online by visiting your bank’s official website or offline by visiting your nearest branch. Remember to upload or submit the required documents along with your application.
Once you submit your application and the relevant documentation, the bank will start confirming the authenticity of your information. They’ll check all your documents and may even call your employer or any other references you’ve provided in your application for verification.
Checking Your Credit Worthiness
No bank wants to risk their money to a defaulter or risky borrower. As such, the next thing your bank will look at after verifying your application is your credit score. Your credit score reflects your ability and willingness to repay your loan. It will determine whether the bank will accept or reject your application. You will need a credit score of at least 700 for your application to succeed. The exact figure may vary from bank to bank, with some requiring a 650 credit score and others 750.
Activating the Credit Card
If your credit card application goes through, the bank will send your credit card to your address and your pin to your registered mobile number. Once you have the two with you, visit the nearest ATM and change your pin. You can also do this online, depending on your bank. Remember, you will always need this pin to authenticate all your credit card transactions.
Whether it is credit cards for food, credit cards for business, or any other type of credit card, the application process is as simple as that. If you want to make your application, you don’t have to worry about getting stuck because you won’t.