As the entire country went under lockdown during the coronavirus pandemic, people from non-metro cities and towns also started depending on online shopping. It led to an increase in the demand for credit cards from all parts of the country.
Now, as the entire world is on the path to economic recovery from the pandemic’s effect, card payments are fast replacing cash in online and offline shopping.
Apply credit cards online instant approval from the issuer follows, which makes getting credit cards a cakewalk.
As against common expectations, the demand for credit cards that offer discounts and rewards on fuel has increased by 10 times after the increase in fuel prices.
Types of Credit Cards
Credit card issuers offer a variety of credit card categories to suit the needs of different customers. These cards are broadly of two categories:
- Unsecured credit cards: Credit cards that are available to customers without asking for security in exchange are unsecured credit cards. Cash-back credit cards, travel credit cards, fuel credit cards, dining credit cards, and zero annual fee credit cards are all unsecured credit cards.
- Secured credit cards: Secured credit cards are available to customers against some security. Customers can loan an amount on their credit card and then make a purchase using it, or get a credit card against their fixed deposit. Card issuers charge lower-interest rates on secured credit cards since they come with collateral as security against default.
Benefits of a Credit Card
Credit cards are loaded with features and benefits for cardholders.
- Credit cards offer discounts and rewards on purchases and spending. Cardholders may get access to VIP lounges at the airports, discounts on dining, cash backs on shopping, etc.
- Credit cards can help build a healthy credit score if the cardholder is disciplined about his credit card bill payments. A good credit score helps get loans and credits in the future.
- Customers have the option of converting credit card debt amounts into easy monthly installments. It takes away the burden of paying large debts in one go.
- Credit cardholders get monthly statements for their spending. It helps them keep their spending habits under check.
- Most credit cards come with a zero-liability fraud cover. If the cardholder reports theft or unauthorized spending on the car immediately, he is not liable to pay the money to the issuer in this case.
How to apply for a Credit Card Online in 3 Simple Steps
Customers can apply online for a credit card in three simple steps given below:
Step 1: Visit the website or mobile application of the card issuer and go to the credit card section to compare the different credit cards offered by the issuer based on their features and charges.
Step 2: Apply for a suitable card and fill out all the details asked. Submit the required identity, address, and income proofs along with the credit card application.
Step 3: Applicants can track their application status on the issuer’s website. If the applicant meets the eligibility criteria of the issuer, he will get approval for his credit card.
How to use Credit Cards Wisely
Credit cardholders need to use their credit card wisely to avoid paying additional charges on them.
- Cardholders should select a card as per their usage needs. A premium card comes with a higher annual fee. If the cardholder is not going to utilise the benefits offered by the premium card, he should ideally opt for a basic card. He can always upgrade this card later.
- Cardholders should keep a track of the billing cycle of the card. Late payment on the credit card bill by even a single day attracts charges. Carrying the balance forward also attracts hefty interest rate charges from the issuer and puts a dent in the credit score of the cardholder.
- Cardholders can use the card for small transactions to build a healthy credit score. They can convert a large payment into EMIs for convenience.
- Credit cardholders should never share their card and PIN details to avoid misuse.
It is more convenient than ever to get a credit card these days. Most banks offer the facility to apply online for a credit card. To get the best credit card, apply online today and enjoy the benefits and perks it offers.