Credit cards can be extremely useful for a number of reasons. However, it is important for one to understand the odds of being approved for a credit card before applying for it. When you know how you can improve your chances of approval for a credit card, you will save yourself a lot of time.
If you do it the right way, you can get your credit card on your first application. Furthermore, each new inquiry you make for a credit card can bring down your credit score. Thus, it is advisable to apply for fewer cards. With banks tightening their lending requirements, you can enhance your chances of being approved with a few steps. In this article, we will address questions like ‘how to apply for a credit card’ and how you can improve your chances of approval.
How to Apply for a Credit Card?
You can apply for a credit card both online and offline. However, the process of applying online is simple and quick. For instance, you can apply for the Bajaj Finserv RBL Bank SuperCard in just three easy steps on the Bajaj Finserv website.
All you need to do is visit the issuer’s website and explore the different types of cards being offered. The next step is to select the card which is best suited to your requirements and click on the ‘Apply’ button. Furnish the requisite details, upload all the necessary documents and submit your form.
Alternatively, you can visit the credit card issuer’s office and apply for a credit card offline. In this case, you will need to fill the requisite forms, complete the formalities and wait for approval.
Now that you know how to apply for a credit card, the next question is how to get a credit card? You can take the following steps to strengthen your credit profile and improve your chances of getting approved.
Check your credit score
When a credit card issuer reviews your credit card application, the primary factors for them are your credit history and credit score (also known as the CIBIL score). The higher your CIBIL score, the more confidence a credit card issuer will have in your ability to repay the loan on time.
This, in turn, improves the chances of your application getting approved. Ideally, you should maintain a CIBIL score above 750 in order to get approved for a credit card. Thus, you should always check your CIBIL score before applying for a credit card in order to ascertain your qualification for the same. You can check your CIBIL score for free in just 2 minutes on the Bajaj Finserv website. Just fill in your personal details and verify your identity to get your CIBIL report.
Pay your loans on time
Ensuring timely payments of the EMIs on your loans and other credit card bills on time goes a long way in maintaining a healthy credit report. Avoid defaulting on your EMIs as it can create a dent in your credit history.
Keep the credit utilization in check
As a general rule of thumb, it is advisable to keep your credit utilization ratio under 30%. This means that you shouldn’t use more than 30% of your credit limit. Thus, you should keep your spending on your credit cards in check to stick to a healthy credit utilization ratio. If you are a frequent user of credit cards, opt for a higher credit limit.
Maintain different types of credit
Having credit is helpful as a person who has never availed any form of credit typically has a lower CIBIL score, making it difficult for them to obtain loans. Thus, you should include a healthy mix of various types of credit with a higher concentration of secured loans (home loans or gold loans) than unsecured loans. When you pay your dues on time, you build a strong credit history. This will help in improving your chances of availing of a better credit card and a lower rate of interest.
Number of credit cards
While having credit cards is beneficial while applying for loans, using an excessive number of credit cards can be counterproductive. This is because applying for credit cards from several banks can negatively impact your credit score. Additionally, you should ensure that you maintain sufficient gaps between applying for new credit cards, lest the lender forms the impression that you are chasing credit. Thus, you should limit the number of credit cards you own to a reasonable amount.
In conclusion, you must always maintain a good credit history and a CIBIL score above 750. You can do so by paying your credit dues on time, keeping your credit utilization ratio under 30%, maintaining a healthy mix of credit and limiting new credit card applications. The Bajaj Finserv RBL Bank SuperCard has an easy application and quick approval process. Thus, you don’t need to worry about questions such as ‘how to apply for a credit card?’.