5 Things to be Careful of Before Applying for a Credit Card

Credit cards have become popular due to their many advantages. But before you join the bandwagon and apply for a credit card, you need to be careful about certain things. Here we talk about things you need to know or be aware of before applying for and using a credit card.


The first and foremost thing to be careful of before applying for a credit card is to check your eligibility. While different banks may list out different eligibility conditions for issuing a credit card, the main factors they consider are the applicant’s income and his ability and willingness to pay his dues as reflected in his credit score. So do ensure that you meet the eligibility norms set out by the credit card issuing company. Applying without meeting the eligibility conditions may reflect badly on your credit score.

Check Credit Card Charges

Using a credit card involves certain fees. The issuer bank may charge the users an annual fee and interest on the amount due after the completion of the credit cycle. There may be late fees, charges on foreign transactions or any other costs associated with the use of this plastic money. So, if you are planning to get a credit card, do check the charges and other applicable fees and fines. This will help you manage your finances better.

Types of Credit Cards

The most popular cards are Visa and MasterCard, which have special tie-ups with banks in India. Consider your requirements when choosing the limit on your credit card. Look at all the special deals being offered, which may include discounts on air travel, movie tickets, restaurant bookings or shopping at specific outlets.

Rewards and Offers

Credit card issuers aim to attract more customers by making attractive offers in terms of good discounts on specific brands or deals or reward points on the use of the credit card at select establishments. These credit card reward points can later be exchanged for cashbacks, further offers, or discounts. Again, some cards may come with reward points that can be used to get discounts on your travel bookings or hotel bookings or even fuel purchases. So do compare the reward point system of the various credit card offers before choosing the one that suits you the most.

In addition to these factors, you may look into the issuer bank’s reputation and the quality of services offered by them. Do compare the terms and conditions associated with different credit cards before you submit your application. This will save you a lot of time and help you in making the right and the most suitable choice.

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