According to the Reserve Bank of India (RBI), a total of 19.9 million credit cards were issued by 55 scheduled commercial banks in India, as of October 2014. HDFC Bank created av record of issuing the highest number of 5.6 million credit cards, followed by 3.3 million by ICICI Bank, during the same time period, as published by Business Standard. For new generation, credit card comes as a boon, since carrying heavy cash is very risky and cumbersome too. Also known as plastic money, credit cards gives cardholder the authority to purchase goods by borrowing money from the financial institution within the given eligible limit, called the credit limit.
Steps to Apply for Credit Card Online in India
Credit cards are issued by banks and other financing institutions, where each lender offers different types of credit cards. The customer can choose the card according to their requirements. The card is issued for a period of one to three years.
Step 1: Choose the Credit Card
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Gold Credit Cards, Silver Credit Cards, Low Interest Credit Cards, Business Credit Cards, Balance Transfer Credit Cards, Cash Back Credit Cards and Premium Credit Cards Types of credit card are some popular credit card types that are available in India.
Step 3: Features to look for in a Credit Card
Although features may vary from one credit card to another, there are certain common features applicable to all credit cards.
- Credit Limit: It is the maximum amount that the cardholder will be allowed to borrow. Credit limit would be based on income earned, past credit history, etc. of the applicant.
- Interest Rate: You should know that in personal loan interest rate is charged on overdue balance, which can be anywhere from 0% to 79 %.
- Late payment fee: Look for the minimum late payment fee structure levied if the minimum amount as mentioned on the bill is not paid.
- Time Limit: Depending on the date of the bill and not on the date of purchase of goods/service, the borrower gets credit for 20 to 50 days to pay the amount. If the due amount is not paid within the given date, a grace period of few more days is granted after which interest is levied.
- Incentives: Depending upon the type of credit card borrowers are using, the credit card holders will be given incentives.
Step 3: Application form
When applying online, visit the banks’ website and choose the “Apply Now” tab. You’ll be asked to fill your details in an online application form. You might also need to provide the soft copy of the
identification documentations for proof and verification along with proof of income and statement copy of bank of previous 6 months. Financing institution would verify the details given by you.
Step 4: Reasons Your Application Can get Rejected
In case you have failed to clear the past loans or any payments in the bank or the income criteria mentioned by bank is not fulfilled, there are high chances that your application for credit card can get rejected. Moreover, in situation, where you are not reachable when the representative from company tries to contact for verification process, things can go against you.
Step 5: Credit Card Receiving
If all the details provided by you are found in order after verification, the financing company would issue and send the credit card to you in 3 to 4 weeks by courier to the mentioned correspondence address.
Do know that the courier service is given strict instructions to hand over the card only to the applicant of the card. Once you receive the credit card, sign at the back of the credit card. Your signature will provide authentication, in case the card is stolen or lost.
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