Things to consider before applying for Credit Cards
Opening the envelope that includes your Credit Card is overwhelming. It provides an additional layer of financial freedom to spend and fulfil all your dreams. You can buy as many goods and luxuries as you desire within the credit limit and repay the bank later. Whether you wish to invest in a car, house, or any other asset, you can do so by paying through your Credit Card.
However, when you apply for Credit Card at a bank, you need to consider some aspects. Though it gives you funds to fulfil immediate needs, you should use it to your comfort and pay funds responsibly. Let us understand what is Credit Card and some facts about it.
Activation process
Activate the card before using it. First, call the given number and authenticate the details. Then, you get an OTP on your registered mobile number to set your card PIN. Alternatively, register from the Net Banking platform. Sign the white strip at the back of the card as ID proof.
Throw the old cards
If the new Credit Card is an upgraded version of the old one, destroy the old one by cutting through the magnetic strip. Maintain the practice of destroying old cards after the new ones arrive for ease of repayment and convenience. It makes your finances and wallet more organised.
Check the rules
Read the repayment rules thoroughly. Some cards have harsh policies and hold rewards that you are liable to receive. Understand the cashback and redemption facilities, amongst other benefits. Some banks also offer complementary facilities like airport lounge access to credit cardholders.
Consider the limits
However high your limit may be, control your expenses. To ensure a healthy credit score, make full payment of your dues once you apply for a Credit Card. This maintains your credit score and reflects positively on your report. You may also get attractive Loan options as you become a responsible borrower.
Check credit scores
After you apply for a Credit Card, do frequent credit checks to learn about your scores and how much you have progressed. Learn the measures to improve it. Credit bureaus like CIBIL offer one free report to all cardholders every year. Use it to know where you stand and identify any errors when you see suspicious changes in your score. Be vigilant and rectify the mistakes timely.