Does the idea of owning a credit card seem intimidating to you? Do you have all sorts of questions like “How can I apply for one? Will I even get approved? What benefits will I get on the card?” So, without further ado, let’s dive into the details and throw light on everything you need to know about a credit card.
Are you Eligible for a Credit Card?
Just because you want to get a credit card, it does not necessarily mean you will get approved for it. Luckily for you, the generic eligibility criteria for a credit card are not too difficult to meet. Here is what you need:
- Age: The minimum age for applying for a credit card is 18 years
- Residence: You must be a resident of India or a non-resident Indian (NRIs)
- Income: You must have a regular, steady income
- Credit History: You should have a good credit history and credit score
Individual banks may have slight variations in these criteria.
What Documents do you Need for a Credit Card Application?
Do you meet the credit card eligibility requirements? Great. Now, all you need is the list of documents required for credit card. These will vary depending on if you are a self-employed or a salaried individual as well as per the bank’s internal regulations. Primarily, these would include your identity proof, address proof, and income proof. The documents which fall under each of these categories are listed below:
Identity Proof: This would be your Aadhaar Card, Passport, Voter ID, PAN card, Driving Licence, etc.
Address Proof: This would be your Aadhaar Card, Passport, Voter ID, Ration Card, recent utility bills, etc.
Income Proof: Form 16, salary slips of the last three months, bank statements of the last quarter, and income tax returns
You would need to select one document from each of the categories and submit a copy of the same as proof.
What Does A Credit Card Offer?
Most popular credit cards these days offer a host of privileges and benefits. Irrespective of the lifestyle requirements, you are sure to benefit if you apply for a credit card. Here are some of the common benefits you can expect to enjoy:
- You can buy big-ticket items whenever you want and convert the purchase into easy EMIs
- Most credit cards these days can be used at both domestic and international locations
- You can withdraw money using your credit card from an ATM with ease in case of emergencies
- You can earn attractive reward points depending on the transaction and card type
- The earned rewards can then be redeemed online and offline in the form of gift vouchers, exclusive discounts, movie tickets, etc.
- For some credit cards, reward points can be redeemed in the form of cash and can be used to pay credit card bills too.
- Apart from rewards, you can also get access to discounts and cashback against purchases.
- Some credit cards offer savings on fuel expenses through fuel surcharge waivers
- The top credit cards offer complimentary airport lounge access at both domestic and international locations.
- There are special credit cards that offer air insurance cover and accident cover.
- You can use a credit card at international locations to pay for your purchases without the need to withdraw cash.
- You even get birthday benefits on several cards as well as special e-vouchers from premium brands
- You get exclusive discounts on co-branded cards
- Premium cards are often backed with complimentary access to luxury properties such as Trident, Club Marriott, Oberoi Hotel, etc
- If you pay your bills regularly, your credit score will improve
- In case of cash emergencies, you can withdraw money from the available cash limit on your credit card.
- If you maintain a good credit history and pay your credit card bills on time, you can get upgraded to a more premium card with better benefits.
- Apart from these, there are several other credit card offers you can enjoy if you use your card well.
Now that you have a thorough understanding of credit cards, all that is left to do is select the right card and apply for it. As the specifics tend to vary from one bank to another, you can check out the best cards from popular government and private banks and compare them on the Bajaj MARKETS website. Once you have made your decision, you can apply on the same website or visit the official bank website to complete your credit card application.