Until the end of December 2017, there are almost 45 Million credit cards holders in India. And this number is growing as the country is being digital. Nowadays a person whose income is more than 15K per month can apply for credit cards.
But everyone who is using any financial product like Credit Cards or Loan before, and again going to apply for new one should cross-check few important points before credit card apply online.
3 Things To Remember Before Credit Card Apply Online
What is your own financial/Card requirements?
Credit Card is the unsecured loan which you can use to make payments. But you should be always careful about your all financial & card needs.
Look for your financial requirements that, do you really need a credit card or you just want to keep it in your pocket for show everyone?
Many times we never think about the requirements while applying for financial products like Credit Cards. Because sales associate always prefers us the product which gives them more benefits.
So if you need a credit card for travel and also want to use it for shopping and dining too, then ask for the multi-purpose card with both features. As an entertainment credit card will not give you Travel and Fuel benefits.
Crosscheck your existing credits & debt.
Have you taken any loan in the past? Are you paying any EMI?
If yes then must think before applying for any new credit card or Loan.
Because existing debts and financial liabilities can cut down your current financial status in front of banks and other financial institutions.
Example: If your annual income is 4 Lac and you are already paying EMI for a personal loan of 3 Lac and using 2 credit cards with a credit limit of 1.5 lac each.
Then you are already in the debt of more than your total annual Income.
These all financial details will be mentioned in your credit reports as the credit agencies always update our financial status in their database.
Try to maintain fewer credit cards:
How many cards do you already hold?
Holding too many credit cards is not a status symbol. Because this habit can destroy your credit score too! Yes, this is true.
Using too many credit cards means more liabilities and debt. So if you miss any payment bank will cut down your Credit Points.
Did you pay a minimum amount in any card in the last statement?
How many times have you done minimum payments for your card's? If it's more then 4 times then this is a sign of big trouble.
Because making regular minimum payments will not only affect your credit score also the repayment amount will increase due to multiple penalties and surcharges.
Don’t only depends on credit cards.
A credit card is a very useful product if you use it carefully. So use them while you really need it and you can get some benefits by using your card.
As buying any product for your home on EMI is a good idea, then booking an unnecessary travel trip just because you are getting some food and drink vouchers.
Try to avoid your card for buying everything with it. Use them while you can get some good benefits by paying with credit cards.
How should you use the credit cards for getting more benefits?
Never do overspendings with credit cards.
Always look for the best deals and discounts on the cards as many e-commerce sites also offer up to 50% discounts and value backs if you use credit cards for making payments.
Search for the best deals on cards where you can save some amount.
Try to avoid use your credit cards for cash withdrawal as bank charge more Interest on cash by Card facility. Make payments on time and save your money, time and energy.
Credit cards are the best for those who use it in the best way.