A credit card is a card that lets the user spend money up to a particular limit and repay that money after a period of time. The reason why people prefer credit cards is that it allows a person to borrow money from the card company and pay it interest free after a period of time. Generally, credit card companies give a grace period of around 20-25 days after the end of the month in which spends are made. By properly planning spends, it is possible to get an almost two month credit period for spends.
Each credit card comes with a defined credit limit beyond which the user can’t spend without clearing the earlier dues. This credit limit is based on the income of the user, the credit score, payment history etc. Credit card companies revise the credit limit based on the relationship between the user and the company.
Credit cards also come with a reward point system for amounts spent on them. These reward points can be converted into airline miles or redeemed on future purchases. Some cards give vouchers on crossing a certain spend and provide discounts on their dining and shopping partners.
Depending on the benefits you are looking from your credit card apply for those cards through their website or directly from the credit card company. One important thing to remember is that credit cards charge an annual fee for the convenience that they provide. Be sure to read and find out about the annual fee from the second year onwards since several cards may waive off the fees in the first year to attract customers. If the credit card fees are something you can afford and the reward point system is robust, then the credit card is worth getting.
How to apply for a credit card?
These are the ways in which you can apply for a credit card:
This can be done by filling a form on the credit card company’s website. Each credit card company or bank has an online form that has to be filled up to apply for the credit card. Once this is done, a customer care executive from the bank or the company will reach out to you to get the documents that they need for the application.
This can be done either by visiting the bank branch or by calling a number mentioned on the credit card company website. The customer care executives can then get the form filled up and collect the relevant documents.
Documents required for a credit card:
The documents required are:
Neha Sharma is a finance student who loves to write in her free time. She has spent considerable time researching about credit card. Through her work, she has given a step-by-step guide on how to apply for one