Are you applying for a credit card for the first time?

Or applying for an additional card?

Or applying with a poor credit score?

The choice of cards and offers from various banks and credit card companies can seem very confusing. You are faced with a bewildering range of types of cards (fuel cards, airline cards, lifestyle cards etc.), various annual fees and processing fees, varying interest rates, varying credit limits. It can be very difficult to choose the best option among all these choices and to figure out which card you are eligible for. However, once you get the right card, you will realize how safe and convenient it is to use.

You can get a card in 2 ways:

1. You can apply directly to the bank online or in person at the branch and complete a basic application form. You will need to provide a few personal details (like name, date of birth), contact details (address, Email ID etc.) and employment details (type of employment, monthly income). Once you submit the application online, a representative of the bank will contact you by sms or email for further processing your application. The bank/card company will check your credit score and other details and decide whether to approve your application.

2. Alternatively, you can save yourself the tension of choosing the right card and avoid the possibility of rejection if you go through a credit management company like CreditMantri. We will do all the research for you and match you – for free - with the credit card best suited to based on your needs and affordability. CreditMantri can remove the confusion from this decision-making process and guide you on the best option. We ensure that you make the right choice and that you avoid the possibility of rejection.

Applying for a card for the first time?

If you have never had a credit card, you will have a short or non-existent history of repaying your bills. This is a problem since banks are unwilling to approve your application because they are unsure of your ability and willingness to repay your bills. There is a high chance that you will be rejected.

If you are applying for the first time, it is a good idea to apply for a secured credit card - which is provided to you against a fixed deposit. A secured credit card especially helps those with little or no credit history to build their credit profile so that they become eligible for regular credit cards and loans in the future. A secured credit card is also advisable for those with a low credit score who are unable to get a regular credit card.

Things to keep in mind when applying for a card:

1.Make sure you only apply for a card that you are eligible for. If you apply for a credit card that you are not eligible for, you will be rejected and your credit score will decrease further. Therefore, it is important to research all the offers available and only apply where you think you have the best chance of being approved.

2. Do not apply for multiple cards at the same time or within a short period of time. Sometimes, due to lack of awareness, people apply for several cards at once in the hope of increasing their chances of being approved. This is not a good idea at all!  If you apply for several cards at the same time, it signifies that you are ‘hungry’ for credit and it will cause a drop in your credit score. This in turn, will make it difficult to qualify for loans in the future.

In short, do your research thoroughly so that you do not apply for the wrong card and get rejected. You might unknowingly and unnecessarily cause your score to drop. If in doubt, CreditMantri can find the best card for you for free- and help guide you through the application process to ensure that you get the most suitable credit card.