Learning about credit card usage is essential for exploring broader financial opportunities. First, you will have to comprehend what is the meaning of a credit card and how it can help you save money while shopping. Then, you can proceed to the learn key features and how to pick and apply for a credit card.
It’s essential to understand how credit cards can help you build a better future and aid your financial growth. When used properly, a credit card can be a powerful tool for building credit and earning rewards. Let’s dive into credit cards, their benefits, and how they can help you manage expenses and unlock benefits while shopping.
Credit Card – Definition
Credit card is an efficient payment tool that gives you access to a credit limit, which you can use whenever you want. With a credit card, you can buy products and settle your bill the following month or on EMI.
This allows you to make large purchases without having to worry about your monthly budget. There are three major ways in which you can use your credit card, namely:
- Use it like a debit card to swipe when you want to pay for something
- Convert your bill into EMI, which will allow you to make bigger purchases
- Use it like a standard credit card to make purchases and earn rewards
Credit Card – Different Types
There are a variety of credit cards, each designed to meet different financial needs and spending habits. Whether you want to earn rewards, build your credit history, or enjoy other benefits, there’s a credit card that fits your lifestyle:
| Unsecured Credit Cards |
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| Student Credit Cards |
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| Business/ Commercial Credit Cards |
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| Secured Credit Cards |
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There are numerous credit card options available, for different needs and purpose. The key is to start where you are, keeping in mind your financial situation and long-term goals.
Credit Card – Key Features
A credit card has the following features which you must consider while applying for one:
- Credit Limit – Based on your credit score and other eligibility measures, your credit limit will be set by your issuer
- Expense Tracker – Credit cards help track your purchases in the most useful way, allowing you to assess your spends and save invest mindfully
- Deals and Discounts – Every credit card company has exclusive deals with merchants, helping you save money when transacting
- Fees – You will need pay the joining fee and the annual fee, if there are any, and along with that, you also need to pay late charges and interest on unpaid balances, EMIs, cash advances and loans
Credit Card – Benefits & Perks
You may be a student, a freelancer, a homemaker or a working professional – a credit card has perks that everyone can enjoy. Let’s look at how you can save more with a credit card, irrespective of your current financial status.
To begin with, you can find the following benefits on your credit card:
- Reward Points
- Discounts and Offers
- Cashback
- Travel Benefits like Lounge Access and Insurance Covers
- Fuel Surcharge Waiver
- EMI Options
- Purchase Protection or Zero Liability Covers
Credit Card – How to Apply
To begin your journey with credit cards, you will need to find a credit card that offers you deals on products you love or purchases you make often. You can get your credit card in just three simple steps, which are:
Step 1: Check Your Eligibility
In most cases, you have to meet the following eligibility criteria, and if you are not eligible, you can always opt for a secured credit card. The requirements to get an unsecured credit card are:
- Age- You should be 18 years old or above
- Nationality- You should be an Indian national as some banks don’t issue credit cards to non-Indians
- Income- You must have a steady income
- Credit Score- You should have a good credit score, preferably 720 and above
Step 2: Check What Documents Need to Be Submitted
After checking your eligibility for the credit card, you need to collect the following documents for submission:
- ID proof
- Address proof
- Income proof
- Passport-size photos
Step 3: Start the Application Process
In this step, you have to fill out the application form. For that, you will need to choose whether you want to proceed online or offline. In both cases, you will have to:
- Fill out the form
- Submit the documents
- Complete the verification process
While there are rewards cards, shopping cards, travel cards and more, you may be looking for a credit card that offers you discounts across categories. That’s exactly what you can enjoy with
the One Credit Card. You can earn 5X monthly rewards on your top two spending categories and save with offers on dining, entertainment, shopping and more.
Its mobile app, the OneCard App, allows you to check offers near you via GPS and take advantage of discounts. It also helps you stay on budget and make recurring payments seamlessly. To make this lifetime-free credit card in India a part of your wallet, apply now.
