A newcomer could find the world of Credit Cards perplexing. Various banks provide credit cards, each one has its unique features and advantages. When you have a limited budget, using a credit card is the most convenient way to borrow money from a bank and pay for products and services. Using a Credit Card is an ideal approach for building credit scores while simultaneously getting additional perks.

Here’s a thorough guide about “how Credit Cards function?” and to further assist you in “Credit Card Application”.

How Does A Credit Card Work?

Although, there is a credit limit on each card, which refers to the maximum amount you can borrow from the bank. A cash advance is also possible with some cards, although it’s not advisable you use it due to the high fees banks apply to them.

A Credit Card Application Process

There are several free credit card apply online services available, you may even get in touch with a issuing bank via phone or mail. A person from the issuing bank will assist you in selecting your card and lead you through the application procedure.

Following steps need to be followed before you apply for a credit card:

Check your CIBIL Score

One of the most important criteria your credit provider takes into account before approving your application is your credit score (CIBIL Score). It is a 3-digit number with a range of 300 to 900. So verify your credit score before applying for a credit card.

Ensure that you are Eligible for a Credit Card

Visit the website of your credit card issuer and review further qualifying requirements. These requirements differ depending on the credit card you choose and the issuing banks. The following are the prerequisites for a credit card that apply to all platforms:

  • You must be a citizen of India
  • When applying for a credit card, you must be at least 21 years old
  • A stable monthly income is required

Compare Credit Card Offers

Depending on the type of credit card, different features and advantages are offered. You will need to do thorough research about the welcome incentives and continuing benefits. Be careful of the yearly fees and interest rates associated with credit cards as well. Consider all the relevant details and then choose the most favourable one as per your requirements.

Fill out the Application Form

Visit your lender’s portal and click the “Apply Now” link after selecting your desired Credit Card Application Status. As soon as you arrive on a new page, you will be required to enter your personal and financial details, including your name, residence, PAN number and yearly income.

After that, upload the required documents after completing your application form, and then click “Submit”.

It is wise to double-check your information before submitting your application. Although the duration of the application procedure varies from issuer to issuer, you will be informed about your Credit Card Application Status within 10 to 15 days.

What Features Should My Initial Credit Card Have?

Credit cards often have features intended for first-time customers, some of them are:

No Annual Fee

The best criterion to consider while choosing your first credit card is choosing the one that doesn’t charge an annual fee. This will lower additional costs associated with the card and you can enjoy the benefits without worrying about the annual fee.

Minimal or No Security Deposit

For people who are new to credit cards, a secured credit card is a practical option. These credit cards are popular as they are available against a security deposit.

You have other options besides secured cards, i.e. unsecured cards. You would be able to avoid making a deposit that way.


A credit card allows you to earn points, and it is beneficial for you as you get to save money on your expenditures. Ensure the card you apply for meets all your basic needs and helps you earn points and other reward benefits on your transactions.

If you use a shopping credit card to make a purchase; the bank will provide you with a certain number of reward points or cash back. For each transaction, you earn rewards as per the card’s spending terms and conditions.


Getting a Credit Card is a great way to build your credit score and even finance your purchases. Before applying for one, you must have the necessary knowledge about it and the appropriate procedure to apply for it. After all, it will help you in making well-informed decisions as per your suitability.

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