A credit card can do wonders to the credit profile of an individual single-handedly and can be a great saving tool at the same time. India is not yet a credit-driven economy, and many are yet to understand the true potential of a credit card, which appears to be an extravagance to most.
Despite the odds, the credit card industry in India has witnessed a compound annual growth rate (CAGR) of 20% in the last five years and the number of credit cards crossed 78 million in July 2022. If you are looking to get a credit card in India, here’s a guide to help you apply for a credit card.
Step-by-Step Guide To Getting A Credit Card Online
You can apply for a credit card online, which is a very easy way of getting in touch with a bank. One can go to the website of the bank from which you want to have a credit card and find your pick from the website, which typically has a separate section for credit cards offered by the financial institution.
Procedure:
Select the credit card of your choice and click on where it says, “apply now”.
After clicking on “apply now”, another link will appear asking for a few details.
With the help of your details the bank will analyze the eligibility of the applicant and accordingly call them for the paperwork.
Paperwork:
After taking an appointment from the eligible individual over the phone, an agent visits the residence for the paperwork and takes details of the applicant for their database.
Some companies also do the required know-your-customer (KYC) details on a phone call rather than sending someone to the customer’s residence.
Issuance:
A credit card is delivered at the address of the applicant within five to seven working days with the users manual, if any.
Read More: Best Credit Cards in India
How to Apply for a Credit Card Through Phone/Call:
Procedure for those who are not existing customers:
- You can also purchase a credit card over a sales call from the company or bank offering the credit card. Here the customer is told about the credit cards offered by the company and after making a selection, a link is sent to the customer on their mobile number via an SMS.
- This link is sent from an official number of the company and is from the official website of the company.
- The customer will be asked by the agent to fill a form provided in the link sent.
- Upon filling the form, the procedure is complete and one gets the card in five to seven working days on the address filled.
- Some companies, rather than doing the KYC on a call, send their employees to the address of the customers to do the paperwork manually.
Procedure for existing customers:
- Existing customers (customers having a savings account or using a credit card of the same bank) will not have to fill any form and no link will be sent to them as the bank already has their details.
- They can get a credit card by using their mobile app while on a call by clicking on the subscribe button given with the name of the debit card they want.
Precautions to be Taken While Applying for a Credit Card on a Call
- It is recommended not to give any personal information like Aadhar number or PAN card number on a call and give the required information when the company employees visit your home. Alternatively, enter your details only at the link sent.
- Check that the URL of the link sent to you is the same as that of the original company. There have been multiple fraudulent cases where the URL of the link has been made to look identical to the original company’s and customers have been cheated. So never go for an identical-looking URL but check the URL of the original site and if it is the same, only then enter your details.
- Another important check is to verify the original source of the SMS sent by the bank or the financial institution. The SMS will always have the name of the bank that sent it. For example, one from the HDFC Bank will not have a number but the name HDFC as the sender.
- Avoid giving your Aadhar number; rather give the PAN card number as giving Aadhar is not mandatory, and a fraud related to Aadhaar can lead to severe implications. You can simply get a credit card with your PAN card.
Eligibility To Apply for a Credit Card
Before applying for a credit card one has to check his/her eligibility for that credit card. Following are the parameters to check the eligibility:
Your requirements:
Before applying for a credit card one has to check his or her requirements and identify the best suitable credit card. There are a number of credit cards available for various purposes, and not having the right credit card will only be a liability.
You can learn about the various kinds of credit cards from our article, “Types Of Credit Cards In India”.
Income:
Each credit card is designed for an income group and anyone below a certain income group is not eligible for certain cards. The minimum income requirement will be very clearly mentioned in the reviews of all the credit cards, except for some credit cards that are affordable for everyone.
Proof of regular income:
Applicants will have to produce a proof of regular income such as Form 16.
Credit score:
Before giving credit to an applicant, the bank checks the credit score of that person. If the person has a very good credit then they get the best credit cards without any hassle. Peoplw with low credit scores can not get a regular credit card easily, and can instead apply for prepaid cards or secured cards (explained below).
For People Who Are Bankrupt:
One can not apply for a credit card in India if they are bankrupt or have filed for bankruptcy. In the course of time, after a person who was bankrupt can open a bank account again, then can apply for a secured credit card or a prepaid credit card. Here’s how the two differ:
- Prepaid credit card: It has all the features of a credit card, but there is no credit limit from the bank. Users have to add the money beforehand, and can only spend up to the amount of money deposited in the credit card account;
- Secured credit cards: These credit cards are given to those applicants who have a fixed deposit with the bank; hence in case of a default, the bank can confiscate the unpaid sum from the deposit at their discretion.
Frequently Asked Question (FAQs)
How many credit cards can one have?
There is no limit to the number; one can have a number of credit cards as per their requirements.
