Are You Eligible to Get a Credit Card?
Credit Cards are one of the most popular financial products to carry out cashless transactions, both online and offline. With the incentivisation of cashless transactions by the Government of India, the popularity of Credit Cards has received a fresh lease of life. Now, you can use your card for various transactions and receive attractive discounts, cashbacks and reward points.
Features of Credit Cards
SBI Credit Card or other Credit Cards function as instant loans and work on the principle of line of credit, wherein you are assigned a pre-specified limit against your Credit Card. Every time you use the card to make a payment, the limit gets reduced and would get replenished only after you make the payment towards the amount outstanding.
The maximum amount of transaction that can be carried out with a Credit Card is the available limit on your card. Cards allow you to pay bills or make transactions even if you do not have adequate balance in your account and you get up to 60 days of the interest-free period to repay the said amount. If you make the payment towards the entire amount due within the interest-free period, you need not pay any interest on it, but if you fail to make the payment in this duration, you will be liable to pay interest up to @42% p.a. from the first day of the transaction itself.
Additionally, you can avail interest-free EMIs (Equated Monthly Instalments) on the purchase of various consumer products through your card at select outlets. Credit Cards are the only mode of payment that allows you to make payment in forex without requesting your bank officials for the same. All Credit Cards come with superior security features that ensure protection against frauds and phishing.
The flip side of using a Credit Card
Though, it’s not as if everything is only rosy about Credit Cards. They have their share of pitfalls also which must be avoided carefully. Easy availability of instant credit leads to impulsive shopping which puts pressure on your financial cycle. The rate of interest on cards is exorbitantly high and can go up to 42%, putting you under a mountain of debt. If not used judiciously, cards can affect your credit score significantly and make you ineligible for any loans in the near future.
That being said, if due care is exercised while using the Credit Cards, you can reap extensive benefits and build a decent credit score as well. The fault lies in the pattern of using the card, not in the card itself.
How to apply and check your eligibility for a Credit Card?
With the rising popularity of online marketplaces like MyMoneyMantra, you can easily compare different types of Credit Cards, their interest rates, benefits offered and various other terms and conditions and then get a card of your choice. When you have all the relevant information with you, it becomes easy to make an informed decision, and you can get a Credit Card that meets your requirements. You just need to fillup an online application form with some essential information, and if your profile matches the threshold specified by the card issuer, your new Credit Card will reach your address in a few working days.
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Before you apply for a Credit Card, you must check your eligibility for a one because making multiple applications for credit cards affect your credit score negatively. Here are the various parameters to ascertain your eligibility for a card:
1.Credit score: You must have a credit score of 750 or above to get your Credit Card application approved. Having a high credit score indicates your good credit habits and assures lender regarding your capacity to repay the amount on time.
2. Age: You must be over 23 years of age to get a card approved for yourself independently. If you are under 23 years of age, you can get an add-on card along with that of your parents.
3. Income proof: You must be an income taxpayer and have at least two years of income tax returns filed on time. Your eligibility and Credit Card limit would be ascertained based on your income level only.
4. Work experience: You need to demonstrate your work experience to be eligible for a Credit Card. Ideally, a work experience of two years is the minimum requirement for most card issuers.
5. Credit history: You must have a good credit history wherein you have repaid all your loans and EMIs on time without default, this would help the card issuers process your application quickly.
6. Exposure to debt: Ideally 50% of your income is considered towards payment of EMIs and Credit Card bills. If you already have a few loans running whose EMI takes up more than 50% of your income, your card application might not be accepted.
7. KYC requirements: You must be an Indian citizen and have a PAN card and Aadhaar card under your name. You must also have a savings bank account in your name, for making payment of Credit Card bills.
8. Security: If it is your first card, your banker may require you to make a fixed deposit and then a card will be issued to you with the limit being the amount of fixed deposit.
Having a Credit Card has become a necessity these days, but you must ensure that you use it judiciously to reap the maximum benefits and save yourself from a mountain of Credit Card debt.
Also Read: 9 Best Credit Cards You Should Own in 2018
To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 70+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.
Talk to our Loan Specialists toll-free at 1800 103 4004 to know more about our products and offers.
