types of credit cards.

Applying for Your credit card : Step By Step

A credit card helps you to borrow money from a bank in certain conditions. Although your monthly income plays an important role as a eligibility criterion for a credit card application, there are several factors you should know before starting that application. Credit cards are designed to help you manage your daily expenses. You should get a credit card only after realizing the various factors involved in the life cycle of a credit card.

Applying for your first credit card can be a difficult task. After all, there are hundreds of credit cards on the market and there are countless horror stories about their misuse. However, credit cards are powerful financial instruments that not only help you build a strong credit history but can also benefit you in many ways if used wisely. Here are some important things to keep in mind when you are taking the initial steps towards applying for your first credit card.

Here are the answers to all the things to keep in mind when buying a credit card.

1. Types of Credit Card

It is very important for you to know the many different types of credit cards in India. For example, if you are new to credit cards, you can opt for a novice level credit card with a lower annual fee.

2. Your Income

Credit card issuers will ask for your income information to check your repayment capacity. Your income plays an important role in applying for a credit card. This is proof to the issuer that you will be able to pay your credit card bill. As your income bracket increases, so do the card choices.

3. Start with low credit limit

Initially, credit card issuers offer you lower credit limits to reduce the risk. Once you get into the habit of managing your credit card, the issuers themselves give you the option to increase your credit limit. Also credit limit is related to your income so if you are a low paid earner then your credit limit may be limited by your earnings.

4. The very important card terms and conditions

It is important to know all the terms and conditions because they contain information that you agree to when you use the card. Read about the card’s APR range, applicable charges, how rewards work and all the other important details. Also take the time to read the fine print in terms and conditions.

5. How does interest apply?

If you repay your credit card balance on time and in full, you are obviously using bank money for free as you do not have to charge any interest. But if you keep the balance from one month to the next, you will be charged interest on the balance as per the APR (Annual Percentage Rate) of your card. APR is usually 30-40%.

6. How does the grace period work?

The incremental period is the period during which you pay the new balance in full and no interest is charged on the purchase made by the issuer before the due date. The extended period starts from the end of the billing cycle until the next payment due date. If you lose extra time by not paying your balance in full before the due date, you will be charged interest on the unpaid balance.

7. Fees and Charges related to the credit card

You have to keep an eye on joining fees, finance charges, annual fees, transfer fees, foreign transaction fees, cash advance charges, over-limit fees and much more. Make sure you know all these numbers before you get overwhelmed by the unexpected charges.

8. Penalty on late payment of credit card

You need to know how much you can charge after the due payment date is assumed to pay your balance. If you make late payments, not only will you be charged extra; but creditors will be able to report your late payments to the credit bureau.

You May Also Read This Post: How to buy cryptocurrency:


On the one hand;applying for the first credit card is a big milestone, but on the other hand; getting there is not an easy task; You need to fully understand how a credit card actually works and read all the terms and conditions related to it carefully, Understanding the possibilities and possibilities before choosing an option can save you money and help you build a good credit score.

Related Posts

3 thoughts on “Applying for Your credit card : Step By Step

Leave a Reply

Your email address will not be published. Required fields are marked *