A credit card helps you manage your recurring expenses and add an element of convenience to your life when used wisely and systematically. Applying for a credit card these days is as easy as entering the required details online and clicking the ‘submit’ button. However, getting your application approved requires a healthy amount of planning.
When you decide to apply for a credit card, you can choose the one that offers you a number of added features and benefits. With the credit card, you can earn reward points and redeem them to shop for gadgets, electronics and lifestyle goods apart from booking flights and stays. Also, you can avail discounts on your shopping basket at selected retail outlets and portals, on movie tickets, groceries, home furnishings, and more. Moreover, you can control the credit and cash limit on your card and have in-hand security and zero-fraud liability cover to protect yourself against cybercrime. You can also address emergency needs by converting your credit limit into an interest-free loan for up to 90 days.
To make the most of these benefits, here is how to apply for a credit card and get the application approved in no time.
- Keep an eye on your credit score
Having a good credit score proves instrumental in securing approval on your credit card. Now a days, you can easily track your credit card application status online. Usually, a credit score below 600 is considered bad. If your numbers are somewhere in this range you should consider holding off your application until you improve your credit score, to avoid rejection.
Lenders consider a credit score of 750 and above as excellent. So, having a score within this range will not only assure quicker approval of the best credit card for you but will also allow you to get an increased credit limit. To improve your score, begin by making timely payments on your existing cards and bring down your debts to maintain a low debt to income ratio.
- Take a look at your credit report
If your credit score reflects lower numbers despite paying back debt on time and keeping a check on your credit utilisation, you must take action. You can go through your credit report for free once a year to make sure that there are no mistakes like an open loan amount that you have paid off. You can then get this corrected to boost your credit score.
- Reduce your debt
If you are working towards building a healthy credit score, it is imperative that you start reducing and clearing your debts. Ideally, you should not incur any debt until you have cleared existing dues. After that you must ensure that you do not spend more than 40% of your income towards servicing loans. Also, seek to have a credit utilisation of just 70% of your credit limit in order to be fiscally responsible and live within your means.
- Mention all sources of income on your application
If you have a low salary or no salary, you should mention your alternate sources of income in your credit card application. These may include income from rent or investments, income from hobbies, or a part-time job. This helps lenders calculate your debt to income ratio, which is key to your credit card approval.
- Think before applying for the first credit card offer you receive
Do not jump at the first credit card offer you get. Rather, spend a little more time cultivating a better credit score and reading more about the other fees and interest charged by the issuer. Improving your credit score will also pave the way for you to get better credit card offers. Making sure the charges are low will help you save money too. This way you can apply for the right card and enjoy the benefits customised to your lifestyle.
Follow these steps to increase your chances of getting a best credit card in India. Understand the set eligibility terms the issuer puts forth and compare them with your credit card requirements to apply for a card that is a win-win. To get a custom deal, check your pre-approved credit card offer right now. This way you can enjoy an instant approval and a bevy of attractive features.