There are many credit cards available from different banks and credit card providers, so choosing the right one suitable for your requirements becomes an important decision. It would be best if you start by considering the purpose for which you intend to use your new credit card. A credit card offers multiple uses like paying for online purchases, covering your vacation expenses, or paying your monthly bills. When you choose to use your new credit card, it is of paramount importance that you clear the due amount every month. You can also take advantage of the interest-free period your credit card offers.
Even if you clear the amount due well within the stipulated time every month, you should check the interest rate and other credit card offers like cashback before opting for a new credit card. Additionally, you need to avoid frequent switching between new credit cards, since your operation is recorded on your credit file each time you apply for a new credit card. Your file also records the instances when your credit card application is rejected. Whenever a new credit card provider checks your credit report, your poor credit history might create a negative image, leading to your application getting rejected.
Thus, it is recommended that you take a cautious approach, and select a credit card that caters to your unique requirements. There are several aspects you need to take into consideration while choosing a new credit card.
Factors you need to consider while choosing a new credit card
- Annual Percentage Rate (APR): This is the cost that you have to pay for using the credit limit on the card if you cannot pay the outstanding amount before the due date. You should compare the credit card offers and check the APR for the cards; this helps you choose the most economical credit card.
- Minimum amount due: This is the minimum amount you need to pay to keep your credit card active, if you aren’t paying the entire outstanding amount.
- Annual fees: Some credit card providers charge an annual fee for using the card. This annual fee is added to the total due amount, and you need to pay interest on the fee along with your expenditure unless you clear all the dues.
- Additional charges: You should carefully check the credit agreement for the additional charges applicable on the card. These charges generally include the penalty for spending above the credit limit, late payment charges, and using the card to pay in a foreign country.
- Rewards: The reward points are offered based on the value of your expenditure, and you can redeem them to purchase goods. Credit card issuers provide all the details about the reward points and related attributes, so it is recommended that you read the fine print before choosing a credit card.
- Cashback offers: Most credit cards extend cashback offers these days. Several payment gateways and shopping outlets provide cashback offers whenever you reach a certain spending limit based on your purchases.
Steps to apply for a new credit card
You can apply for a credit card online, by visiting the nearest bank branch or by using phone banking services.
To apply for a new credit card through the online medium, you need to follow these steps:
Step 1: Log onto the issuer’s website
Step 2: Compare the different types of cards offered by the issuer
Step 3: Use online comparison tools (if available) to compare the cards’ features, offers and benefits
Step 4: Select the card suitable for your needs and click on the ‘Apply Now’ option
Step 5: You will be prompted to fill in the details. Fill in all the required details and upload the necessary documents
Step 6: Follow the further instructions and submit the form
Once your application is reviewed and the eligibility criteria are met, you will receive the card through a registered post.
If you are planning to apply for your first credit card, then the Bajaj Finserv RBL Bank SuperCard is the best choice. The Bajaj Finserv co-brand credit card comes with a host of features that you can benefit from, such as interest-free cash withdrawals for upto 50 days and the facility to get a cash advance as a personal loan at a nominal interest rate.