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You must know these 5 Important points of your First Credit Card

BUSINESS FINANCE

It is not uncommon to find investments in credit cards to be quite tricky because of the atmosphere of responsibility enveloping it. Opening your first bank account as a minor and getting a card in your name can be quite a daunting process if you approach the wrong person.

These plastic cards hold a lot of power in our lives as they have the capacity to better or worse our future if treated differently. If, for case, you have a history of credit default or you have not paid your monthly credit card bill on time, it can lower your credit score and there can be stringent restrictions placed on your credit limit. Investing in your first credit card can be an overwhelming situation if proper research is not at your disposal. Below, we give you five of the most important points to bear in mind before investing in your first credit card.

Although there are no direct ‘hacks’ to understanding everything about credit cards in one go, this article can serve as a beginner’s guide. In just five points, we highlight the basics of credit cards for credit newbies. Save yourself the trouble of reading individual articles by reading this one short guide to the credit world. We also provide you with a framework on how to apply for a credit card.

  1. Which credit cards are the best?

Credit cards come in several types, and these categories vary depending on the credit-granting institution you approach. Before investing in a credit card, it is imperative to be aware of which card is best suited for your requirements. A secured credit card in India is normally recommended to you if you do not have a decent credit history.

 Your debt levels, monthly credit bill payments, and misuse of other credit cards (if any) all contribute to your history with credit. Secured credit cards are procured once a security deposit is given to your pertinent institution. For a first-timer, the provision of a secured credit card is rare. You might be offered unsecured, rewards or student credit cards.

An unsecured credit card does not require a security deposit for attainment. It is the standard credit card with a credit balance and score. A rewards credit card refers to credit cards that have supplementary features that ensure you get cashback, reward points, or discounts.

These rewards also include travel and shopping rewards. Travel benefits include access to VIP lounges in airports, airfare discounts, and upgrades to better flight locations or statuses. Travel also includes vehicular rewards such as vehicle gas discounts and bus fares offers. Shopping rewards refer to the provision of redeeming a coupon or voucher after a few shopping transactions and discounts on selected stores. A student credit card is not very common and is not readily available in every bank or credit providing institution. It is a card given to students with special offers and discounts on student-related stores.

  1. Application Format

The start of the internet has made a considerable difference in our everyday lives. Applying for bank-related schemes has never been easier. Applying for a credit card, in specific, follows a simple format. After doing your research on which type of card you want from which bank, you can visit the online website or bank in person. All you would require to do to complete this step is to submit a form with details about yourself and provide documentation as evidence of your identification, residential location, and monthly income.

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  1. Newbie Terms

When leading your research, it is imperative to be aware of the exact details of what card you wish to apply for. Credit cards are commitments, and you do not want to regret investing in them later. To be safer, we recommend you look up the annual fee, late fee, and interest rate for the card under consideration. The interest rate is also recognized as the annual percentage rate (APR). For example, the Bajaj Finserv RBL Bank Platinum Plus FYF SuperCard provides their customers with appealing benefits at an overdue interest rate of only 2.5% (excluding GST) and no joining fee for the first year on its secured credit card.

  1. Late Payments have Repercussions

Late monthly credit card bill payments have adverse implications. A late fee spirit be charged to your extant payment amount which increases after each day. This, in turn, immediately affects your credit score. Your credit limit might reduce, and the next time you wish to apply for a credit card, it could get rejected (in severe circumstances of credit abuse).

  1. Credit Fraud? Fear No More

Situations involving credit fraud can be quite frightening, especially for first-time credit cardholders. However, with the way of time, it has develop easier to deal with such dire situations. If your credit card information is obtained fraudulently, it is essential to remember that the credit card institute will have to deal with its implications, not you. You can dispute fraudulent charges and eliminate them from your outstanding balance right away. Booking your card is easy too. Acquiring a replacement card is simple.

Joshua King

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