To suitably fulfil the rising demand for short-term funding, financial institutions in India have come up with different types of credit cards. Even though this financial tool has become a go-to financing tool, not all of them suit an individual. Thus, card issuers have introduced some premium feature rich credit card that are rich with features to provide multiplied benefits.
Due to the progression and transformation of the present credit card market, presently, it is considered more than a debt tool. Hence, its features are designed to encompass various user needs. It has thus become important to know about these features before making a credit card application.
The process to obtain a feature rich credit card
1- Research and compare to select the best credit card
Initially, it may seem challenging to compare credit card features and pick the most suitable one. However, a step by step searching process can be beneficial. Firstly, individuals should consider their spending pattern to identify the most frequent and recurrent transactions. As per the spending habit, they can compare across the available card options.
Reward programs on credit cards are another of the significant benefits that borrowers should consider before credit card application. These incentive programs are designed to help users earn reward points, discounts, cash backs, coupons, vouchers, etc. on card transactions. Individuals can use these incentives to save on future purchases.
Applicants should always look for lower credit card interest rates as well, as default in bill payment can attract high interest rates.
For example, a premium card comes with various useful reward programs at competitive rates of interest. Furthermore, borrowers need to compare the applicable charges and penalties like transaction charges, processing fees, balance transfer charges, late payment penalties, etc. too.
2- Check the eligibility criteria and necessary documents
To obtain a feature rich credit card, individuals need to meet some mandatory eligibility requirements. Lenders reduce their financial risk by ensuring the repaying capacity of borrowers through these criteria. The credit card application can be rejected if the applicant’s profile does not match these parameters.
Moreover, multiple rejections also impact borrowers’ credit history adversely. Thus, individuals should always check their qualification criteria to avail any card before applying.
Based on the preferred card and financier, these parameters can change. However, some essential criteria include citizenship, monthly earning, CIBIL score, credit history and age. For these premium category cards, individuals must hold an excellent credit profile with zero default history and a score above 750. Also, depending on their residential area, the monthly income needs to be on the higher side.
Furthermore, applicants have to furnish documents like KYC documents, account statements, PAN, salary slips, etc. to ensure their credentials.
3- Check for below mentioned
Check for yearly percentage rates
It is also called APR, an Annual Percentage Rate which denotes the cost included in borrowing of the card calculated when you don’t pay off the amount each month.
Minimum repayment options amount
It is the minimum amount that you needed to pay when you not pay off your debt monthly
Yearly Fees to be submitted
Some cards will charge you an annual fee. Here the thing to be noticed is that these fees will be then added to your due amount, and you will need to pay interest on that fee until you have fully paid it.
All Charges Applied
Before finalising one, read your credit card agreement well to check if there are any other charges applied on the card or the credit card limit after you will be charged for.
Reward Points to Redeem
4- Proceed for a credit card application online
Once the comparison of credit card features is made, and eligibility measures are checked, borrowers can apply for their chosen card online. However, for a useful comparison and an informed decision, applicants should know the exclusive benefits of a SuperCard that other credit cards don’t offer.
As for the application process, after visiting the issuer website, users have to fill in a credit card application form with the right details and submit. Financial organisations can look through the application and verify credentials with a quick assessment. Meanwhile, applicants can check their application status online for quick tracking.
Next, they need to hand over the documents to a visiting representative who would also verify details. After the verification process and approval, issuers would send the credit card by post within 7 business days.
Obtaining a credit card is not a complicated process when undertaken step-wise. For quick and hassle-free approvals, applicants should know all the important things before applying for a credit card.
Nonetheless, whether it is a feature rich credit card or a regular one, this financial instrument comes with a repayment responsibility. So, while paying with cards, borrowers should be careful about their total value of the transactions and also clear their monthly dues in time.