• Know your credit card eligibility
  • Find out about the credit limit
  • Check out the associated charges
  • Understand the working of the grace period

In the digital age, when the thrust is on cashless economy, credit cards have gained immense popularity. Helping you meet unexpected need for money in an emergency and even otherwise, credit cards have become a necessity nowadays.

If you have already made up your mind about owning a credit card and are in the process for applying one, given below are some essential things to take note of.

Credit card eligibility:

Before applying for a credit card, make sure you fulfil the credit card eligibility of the card issuance company. Today, most financial institutions clearly spell the criteria which you need to fulfil before applying for a card. While the criterion may vary across institutions, the most common ones include your age and income.

At the same time, do check your credit score as a healthy score boosts your eligibility. You can check your credit score either from credit information companies (CICs) or third-party websites.

Credit limit offered:

Credit limit depends on several factors including your credit history, credit score, spending patterns and the documentation required by the bank during the application process. The better your credit history,the higher the credit limit offered.

Reward points:reward points

Every credit card on purchase of an item offers reward points. These points can be encashed to get discounts on future purchases. When you are applying for a credit card, find out more about the working of these points.

See the terms and conditions under which you can redeem them and whether there is any specific period within which you need to use these points.

Associated charges:

Every convenience comes with the associated charges and credit cards are no different. Before applying for a card, do take note of these charges. Some of the common ones are:

  • Joining charges – Levied at the time of owning a card. At the same time, you need to pay annual charges for card maintenance. However, today most companies waive them off to attract customers.
  • Finance charges – Levied in case you don’t make complete payment due by the due date mentioned in your card statement
  • Late payment fees – Charged in case you fail to pay the minimum amount due
  • Over limit penalty – In case you exceed the pre-defined credit limit, you need to pay this charge
Also, take a note of the processing fee, if any, while applying for a card.

Click here to apply for RBL Bank Credit Card.