How to Apply For Credit Cards Online – Account holders who wish to obtain credit card but found it difficult should read this article carefully on how to apply for credit card online. Follow the instructions for easy online application of your credit card.
Credit Card makes transactions easy and accessible, carrying heavy cash is very risky and cumbersome too, credit card comes as a boon and is extensively used due to its convenience and safety. It may vary from one credit card to another, but there are few common features applicable to all credit cards.
Features of Credit Card
- Credit Limit & Interest Rate. The maximum amount that the cardholder will be allowed to borrow will be as per the permitted credit limit,which is based on income earned, past credit history, etc. of the applicant.
- An interest rate is charged on overdue balance. The interest rate can be anywhere from 0% to 79 %. Also a late payment fee is levied if the minimum amount as mentioned on the bill is not paid.
- Time Limit & Incentives. The borrower gets credit for 20 to 50 days depending on the date of the bill and not on the date of purchase of goods/service.The due amount has to be paid by the mentioned due date and if the amount is not paid within the given date, a grace period of few more days is granted after which interest is levied.
The credit card holders will be given incentives depending upon the type of credit card they are using.
- Parties involved in Credit Card Transactions. The following are the parties involved in credit card transactions:
Card holder or applicant
Bank issuing credit card
Merchant – the individual or company accepting payments made through credit card for products and services.
Acquiring bank – The bank that processes all transactions between the cardholder, merchant and the issuer.
Benefits of Credit Cards
Credit card also gives additional benefits such as incentives to the cardholder such as discount on holidays, cash back offer or insurance cover for purchases made.
It increases the flexibility as there is no necessity of carrying more cash in hand for purchasing.
The mode of purchase becomes easier with credit card and shopping simpler as it can be done through online or even phone.
It is convenient for borrowing for a short period of time, as the interest is charged only on the unpaid amount of the cardholder and any subsequent purchases.
Disadvantages of Credit Cards
- The interest rates are very high and subject to change
- Merchants accepting credit cards are required to pay a processing fee to the acquirer on transactions of card.
- In some cases they pass the charges to the customer due to the agreement made between the parties. Thus the customer has to pay an additional charge over and above the cost of purchases.
- Cards can be stolen or misused when neglected.
Types of Credit Cards
- Gold Credit Card,
- Silver Credit Card,
- Low Interest Credit Card,
- Business Credit Card,
- Balance Transfer Credit Card,
- Cash Back Credit Card,
- Premium Credit Card.
How to Apply For Credit Card Online
Credit cards are issued by banks and each bank offers different types of credit cards. The customer can choose the card according to their requirements. The card is issued for a period of one to three years.
To apply for credit card;
1. Choose the card that you wish to apply.
2. A duly completed application form along with a photograph has to be submitted.
3. You have to provide the following identification documentations for proof and verification:
- Proof of income
- Statement copy of bank (previous 6 months).
- You can send the documents through an agent or can even courier to the given address.
4. The company would verify the details given by you.
If all the details after verification are found in order, the company would send the credit card in 3 to 4 weeks starting from the day the application has been sent.
It would issue the credit card and send it by courier to the mentioned correspondence address.
The courier has strict instructions to hand over the card only to the applicant of the card. The company also provides details about the credit limit.
It is important to sign at the back of the credit card. It serves the purpose of authentication on the spot when the card is stolen or lost.
Reasons for Credit Card Application Rejection
There are reasons for which your application for credit card can get rejected. The reasons may be any of these:
You have failed to clear the past loans or any payments in the bank.
The income criteria mentioned by bank is not fulfilled.
If the applicant is not reachable when the representative from company tries to contact for verification process.
Credit Card Receiving Procedure
The procedure of getting credit card can be done in 3 ways;
- Bank (in Person)
Credit Card Payment Procedure
- Online payment
- In bank
Banks Offering Credit Cards
- Citibank Credit Card
- HDFC Bank
- ICICI Bank
- Standard Chartered Bank
- SBI etc.
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