Needs of a credit card

Credit cards usually offer the cardholders a line of credit. This money is supposed to be repaid to the bank with the appropriate interest charges demanded by the bank at the time of the approval of the card. How often you would have to pay the interest/ the credit card bills and when you would have to repay the amount completely would be given to you in the terms and conditions of the credit card. The upper limit as to how much credit the applicant can use is given in the terms and conditions as well.

Credit Card can now be used for purchases at the point of sales, to withdraw cash from ATM, online purchases, shopping, etc. It also allows the transfer of money from one bank account to another. As mentioned above credit cards can be used for a variety of things. Such as for regular grocery purchases, buying clothes, electrical appliances in installments, withdrawing cash, and so on. What are the documents needed to apply for a credit card, so that you can avail these benefits?

The documents needed for the application of a credit card are :

I. You need to fill your application form completely along with your signature.

II. Attach your passport sized photographs along with the application form The required income proof documents for both salaried and self-employed individuals are: Bank statement of the past 3 months, salary slips, Form 16, income tax returns, the proof of your business, balance sheet- showing the profits and the losses etc.

III. The required identity proof documents are: PAN card, driving license, Aadhar card, voter ID, Passport, etc.

IV. All of these along with your residence proof documents : utility bills, driving license, PAN, Aadhar card, etc.

V. If you are a student who is applying for a credit card then you would need a letter from your college, your student ID card, letter from your parents along with their income proof.

How do we maintain a high credit score in order to get a credit card and for future purposes?

The importance of maintaining a good credit score is because it is one of the major factors which money lenders check before approving your request for a credit card. Building a decent credit score is not very difficult, you just have to make sure you choose the bank of your choice.

There are certain things that you should judiciously follow if you are applying and using a credit card for the first time in your life. They are:

I. You need to plan and set a budget and make sure you track all your purchases to see that they fit into the said budget. If you are really interested in making sure you stick to your budget then you should check out Oriental bank of Commerce Credit Card. They are extremely budget friendly.

II. Ensure that most of your payments are done using debit card or cash so that the use of your credit card is kept minimal and you would be saving a lot more from having to pay the bill.

III. Keep a track of your bank statement regularly. This is done to avoid any issues.

IV. Make sure you pay your credit card bill monthly, without keeping any installments. Keeping installments could negatively affect your credit score.

V. Do not hesitate to use the privileges offered to you to the fullest. You earned it.

Conclusion: 

A credit card is one of the most secure forms of electronic transactions and offers a series of advantages and privileges to the card holder’s provided they pay the monthly bill for the credit card and continue showing excellent credit behavior. The availing of a credit card is a very simple procedure, it just requires you to meet the above mentioned criteria and have the required credit score for your request to be approved. Else, the bank/lending institution would recommend a credit card which they can provide for the criteria that you have met, which might not exactly be what you wanted. And again a credit card can be used anywhere at any time of emergency, always remember that.