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How To Get Your First Credit Card?
Getting your first credit card can be a scary experience. The joining fee, annual charges, interest rates offered, reward point programs, and various other features make the entire experience very intimidating. You don’t know what to do, how to apply, what is the best card to choose, or if you could be getting a better card. There are just so many unanswered questions. But worry no more! We are here to help you apply for your first credit card.
How to apply for your first credit card?
There are two ways you can get your first credit card.
Apply for a card with your primary bank:
One of the easiest ways to get approval on your credit card application is to apply with your primary banker. If you have maintained a steady balance in your account, and your account is more than a year old, chances are that your primary bank would be happy to offer you a card. This is because the bank already has a steady relationship with you. This enables the bank to be more trustful of you when giving you a credit card.
Apply for a secured credit card:
A secured credit card is issued against a fixed deposit. Say you make a fixed deposit of ₹50,000. So, you can get a card with the credit limit of about 80% of the fixed deposit. The fixed deposit here works as a collateral. The bank is assured that in case you are unable to pay your credit card bills, they can always liquidate your deposit to extract the dues.
What are the things to keep in mind before getting your first credit card?
Before you apply for a credit card, there are various things you must keep in mind:
- Choose a card that rewards your needs: Different cards are designed for different lifestyles. Some cards might reward travel more, while others might reward everyday general spends, and so on. So, ensure that you choose a card that rewards the spends that you make the most often.
- Review all the details: While applying for a card, never ignore even the slightest of details. Read all card features properly and be aware of all additional terms and conditions on your card.
- Don’t make too many applications: Applying at multiple places can actually reduce your chances of application. So, choose one or two options you want to apply for, and do not apply at too many places.
- Be ready to prove that you can make the payments: Since this is your first credit card, and you do not have a credit history, the banks would want to do everything to ensure that you actually can make the payments. This might include checking your bank statements and requesting your salary slips. Don’t be deterred by this, and simply provide the paperwork.
The Biggest Tip of All –
The biggest credit card tip someone can give you is- use your card to build your credit history. A credit card can take you a long way when it comes to building your credit history. However, you can only do that if you can be sure that you can keep a handle on your finances. You have to make sure that you make all the payments on time, and don’t use the card for splurging. Like any financial advisor would tell you- be responsible with your card, and it can do wonders for you.
