Credit Cards are one of the most widely used financial products in the present times, and their popularity has witnessed a recent surge due to the rapid progress in the e-commerce industry as well as the push from the Indian government to encourage people for digital payments. Add to it the enhanced online security and fraud protection facility provided with every SBI Credit Card or other card offers, and you will understand the reason for everybody being eager to get a new Credit Card. Due to changing spending patterns of the users, many Credit Card companies have come out with special cards that offer additional benefits for specific transactions. Such has been the popularity of these cards that most people are looking to Apply for the Best Credit Card Online.
In order to accommodate to the growing demand for this plastic currency, most banks are offering a variety of cards as per the needs and requirements of the customers. You can browse the particular bank’s website or can also browse the various online marketplaces such as MyMoneyMantra, where you can access all the information about different Credit Cards and then apply for the best one as per your preferences.
How Do Credit Cards Work?
Credit Cards work on the principle of revolving credit and are a type of unsecured loan where you only need to pay interest on the amount utilised, not on the total sanctioned limit. You must make repayments toward your card bills every month. There are three options when you are making a payment towards a Credit Card bill.
- Total amount due: Every Credit Card comes with a pre-sanctioned limit, which is the total amount that you are able to spend on your card. Your card has an interest free period during which if you repay the entire amount due, then your interest liability is waived off. So, it is suggested that you make the full payment towards your Credit Card bill every month.
- Minimum amount Due: This is the minimum amount you must pay with every billing cycle to save yourself from late payment or overdue charges. You must use minimum amount due sporadically only and not make it a habit; as otherwise, you will pile up a substantial Credit Card debt.
- Amount of your choice: This amount must be more than the minimum amount and can be opted for if you are not in a position to repay the entire bill amount. This will reduce your Credit Card debt faster than the minimum amount due to
How to Get Your First Credit Card?
In the present times, it is essential that you have a Credit Card with you, in order to take care of your needs for digital payments as well as access immediate credit to take care of your urgent needs. As such you can follow the below mentioned three tips, that will help you get your first card without any hassles:
- Get an add-on card
This is one of the easiest and quickest ways to get a Credit Card for yourself. If any of your existing family members have a Credit card, then you can just apply with their card issuer to provide an add-on card. This add-on card does not have any separate limit, i.e., the total limit on the card would remain the same, it’s just that you will be able to carry around and use your own card, without requiring to borrow one from your family member or spouse.
- Open a new account
Most banks nowadays offer Credit cards to their new customers who open premium or high balance accounts and have a good credit score. So, you just need to tick the option for a Credit Card when you are filling out the application form for a bank account and express your wish to your relationship manager that you want to apply for a new card. If your credit score meets their requirements, your card would simply arrive at your address.
- Get a secured Credit Card
If your credit score is below the specified threshold (below 750), then you can consider applying for a secured Credit Card. Herein you basically make a fixed deposit with your bank, and the bank keeps it as a security and issues you a card with the maximum limit being 90% of the amount of fixed deposit. Your fixed deposit would continue to earn interest as usual, but you will not be able to break it or take a loan against it unless you settle your Credit Card dues in full. After you have used the card satisfactorily for some time, the bank can convert it to an unsecured Credit Card, and there would be no need to pledge your fixed deposit.
Credit Cards have become an essential financial tool in the modern-day uncertain economic environment, but they must be used with caution to get maximum benefits out of them.
To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.
Talk to our Loan Specialists toll-free at 1800 103 4004 to know more about our products and offers.