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Online Credit Card Application – How to Apply For CreditCards Online

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How to Apply For Credit Cards Online – Account holders who wish to obtain a credit card but found it difficult should read this article carefully on how to apply for a credit card online. Follow the instructions for easy online application of your credit card.

 

Credit Cards

Credit Card makes transactions easy and accessible, carrying heavy cash is very risky and cumbersome too, credit card comes as a boon and is extensively used due to their convenience and safety. It may vary from one credit card to another, but there are few common features applicable to all credit cards.

Features of Credit Card

  1. Credit Limit & Interest Rate The maximum amount that the cardholder will be allowed to borrow will be as per the permitted credit limit, which is based on income earned, past credit history, etc. of the applicant.
  2. An interest rate is charged on an overdue balance. The interest rate can be anywhere from 0% to 79 %. Also, a late payment fee is levied if the minimum amount as mentioned on the bill is not paid.
  3. Time Limit & Incentives. The borrower gets credit for 20 to 50 days depending on the date of the bill and not on the date of purchase of goods/service. The due amount has to be paid by the mentioned due date and if the amount is not paid within the given date, a grace period of a few more days is granted after which interest is levied.
  4. The credit cardholders will be given incentives depending upon the type of credit card they are using.
  5. Parties involved in Credit Card Transactions. The following are the parties involved in credit card transactions:
  • Cardholder or applicant
  • The bank issuing credit card
  • Merchant – the individual or company accepting payments made through credit card for products and services.
  • Acquiring bank – The bank that processes all transactions between the cardholder, merchant, and the issuer.

Credit Card Benefits

  • The credit card also gives additional benefits such as incentives to the cardholder such as discounts on holidays, cashback offers, or insurance cover for purchases made.
  • It increases flexibility as there is no necessity of carrying more cash in hand for purchasing.
  • The mode of purchase becomes easier with a credit card and shopping is simpler as it can be done online or even by phone.
  • It is convenient for borrowing for a short period of time, as the interest is charged only on the unpaid amount of the cardholder and any subsequent purchases.

Disadvantages

  • The interest rates are very high and subject to change
  • Merchants accepting credit cards are required to pay a processing fee to the acquirer on transactions of cards.
  • In some cases, they pass the charges to the customer due to the agreement made between the parties. Thus the customer has to pay an additional charge over and above the cost of purchases.
  • Cards can be stolen or misused when neglected.

Credit Card Types

  1. Gold Credit Cards,
  2. Silver Credit Cards,
  3. Low-Interest Credit Cards,
  4. Business Credit Cards,
  5. Balance Transfer Credit Cards,
  6. Cash Back Credit Cards,
  7. Premium Credit Cards.

How to Apply For Credit Card Online

Credit cards are issued by banks and each bank offers different types of credit cards. The customer can choose the card according to their requirements. The card is issued for a period of one to three years.

To apply for a credit card;

1.  Choose the card that you wish to apply for.

2.  A duly completed application form along with a photograph has to be submitted.

3.  You have to provide the following identification documentation for proof and verification:

  • Proof of income
  • Statement copy of bank (previous 6 months).
  • You can send the documents through an agent or can even courier them to the given address.

4. The company would verify the details given by you.

  •  If all the details after verification are found in order, the company would send the credit card in 3 to 4 weeks starting from the day the application has been sent.
  • It would issue the credit card and send it by courier to the mentioned correspondence address.
  • The courier has strict instructions to hand over the card only to the applicant of the card. The company also provides details about the credit limit.
  • It is important to sign at the back of the credit card. It serves the purpose of authentication on the spot when the card is stolen or lost.

Reasons for Credit Card Application Rejection

There are reasons for which your application for a credit card can get rejected. The reasons may be any of these:

  • You have failed to clear the past loans or any payments in the bank.
  • The income criteria mentioned by the bank are not fulfilled.
  • If the applicant is not reachable when the representative from the company tries to contact them for the verification process.

Credit Card Receiving Procedure

The procedure of getting a credit card can be done in 3 ways;

  • Bank (in Person)
  •  E-mail
  • Internet

Credit Card Payment Procedure

  • Online payment
  • In bank

Banks Offering Credit Cards

  • Citibank Credit Card
  •  HDFC Bank
  • ICICI Bank
  • Standard Chartered Bank
  • SBI etc.

See More Guide that will help: Apply for a Credit, Debit or Prepaid Card | Visa | Mastercard (💳)

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