As we move towards a cashless society, plastic money, in the form of Credit Cards, has emerged as a viable alternative to currency notes and coins. Apart from providing access to covering expenses on the go and rewarding you for your spends, cards help you build a strong credit history that can be an asset for the future. However, not everyone spends the same way and the following are some quick tips to help you choose the most suitable option for you.
- Check Your Eligibility
Whether you are applying for a card for the first time or getting an additional card to complement your current one, your net income and credit history inclusive of credit score is sure to play a key role in the approval process. Checking your eligibility prior to applying does not adversely affect your credit rating, however, an unsuccessful application does. You can now check your credit score from Equifax for free by visiting the Paisabazaar website.
- Be Sure to collate all relevant Documents
Applying for a Credit Card does require submission of quite a few documents, including government-issued photo ID cards such as Driving License and PAN Card, address proofs such as electricity bills, water bills and telephone bills. The requirements differ slightly for for salaried and self employed in terms of income proof. If you are salaried, key income proof documents required are:
- Salary slips for the past 3 months
- Bank salary account statements for the previous 6 months
In case you are self employed, key income proof documents required include:
- Latest CA certified IT returns with computation of income
- Proof of business continuity and ownership
Such documentation requirements are liable to change and often vary from bank to bank. Log on to Paisabazaar for the detailed list and more tips to on how to ensure a smooth application process.
- Compare and Choose
At present, credit card holders are spoilt for choice with cards designed to suit every type of spending. If you plan to use your credit card for specific expenses such as fuel or travel, it makes sense to choose a card that rewards you more for those specific expenses. Also, if you are going for multiple cards and already have a cash back card, you may decide to choose a card that provides reward points, which can be converted to free gifts or gift vouchers at a later date. For additional tips on how to choose between a cash back or rewards card, visit the Paisabazaar website.
- Read the Credit Card Agreement Carefully
Once you find a card that fits your requirement criteria make sure that you read through and understand key aspects of your credit card agreement such as the APR (annual percentage rate), interest free period, balance transfer offers, the rewards program, cash withdrawal limit, credit limit and over limit fees. Taking the time and putting in the effort to understand these key aspects before submitting the completed application would enable you to better utilize your card and derive the maximum benefits.
Also keep in mind that credit card agreements may be revised from time to time and your card issuer is legally required to let you know of these changes before they come into effect. So, be on the look out and make sure you understand how the changes will affect you to continue receiving the maximum benfits from your credit card.
As we move towards a cashless society, plastic money, in the form of Credit Cards, has emerged as a viable alternative to currency notes and coins. Apart from providing access to covering expenses on the go and rewarding you for your spends, cards help you build a strong credit history that can be an asset for the future. However, not everyone spends the same way and the following are some quick tips to help you choose the most suitable option for you.