Credit Card is one of the most useful and handy financial instruments. However, it can impose execrable harm if not utilized properly. Using it with responsibility can generate a good credit score and in future will help to access loans at a favourable interest rate. With everyday purchases, one can qualify for reward points, which can be redeemed later for gifts, flight tickets, vouchers, etc. There are an array of offers on different categories like dining, travel, shopping bills payments, etc. It is one of the safest ways to make payment for stores and online as the transactions are verified through OTP or PIN.

 

Know your Credit Card: Before applying for a credit card, one must be well aware of the type of credit card he is purchasing. Every credit card comes with different interest rates, various fees and a host of benefits. A single credit card will not offer the best combination of all these three criteria, though one can compare and rely on the available option that suits their needs and usage. Credit cards offering lower interest rates, lower fees and benefits that match a customer’s financial requirements can be the perfect one. The functioning of a credit card is effortless, as the issuing company will allow you to spend on most types of expenses you make through the card. But one must be cautioned and informed that after a specific time period and expenditure limit, one needs to pay back the due amount in a set frame of time. Failing of this can lead to the payment of higher interest for delay. It can even damage your credit score. If you are an HDFC Bank customer, then you can check your HDFC credit card status by visiting the official page of the bank.

 

Spending Wisely: Credit card can be tempting and drive users to spend more and more on purchases. But higher payments also translate into higher repayments which you may not afford at times. No one wants a situation where they end up maxing out their credit limit. It is wise to be familiar with your credit limit so that you can calculate your expenditures before proceeding to spend an excessive amount. On the contrary, if you think you won’t be using your credit card to make payments, then after a certain period of time it can incur additional charges. Credit cards are not a weapon to be operated only for financing an emergency condition but one can use it to make small purchases. This confirms that you pay off the balance before the pending interest.

 

Rates and Fees: While most credit card companies will reveal you the monthly Credit Card Interest Rate, it can be a bit simpler if they show you the annual Credit Card Interest Rate. APR is one of the reliable sources, that will tell you how much you need to pay on your credit card outstanding every year. One can also transfer the amount from their credit card to another credit card and a balance transfer fees will be charged on it. Currently, HDFC Bank charges 1.10% as balance transfer fees. Late payment fees are charged if any credit card holders do not make the minimum payment on the credit cards, which is 5% of the statement balance within the due date or time. Though it may not sound that serious for credit cardholders, frequent late payments can deteriorate the credit score ratings.

 

Credit Card Rules: It is always better to apply for a single credit card and know its details properly. Once you proceed to apply for a credit card, there might be many lucrative offers available in different cards, but it can land you in trouble. You can select a single card based on features that match your needs and preferences. Beware, the more number of cards you own the more will be the burden of debts added on you.

 

Refer to the credit scores: A credit score of an individual can be a hindrance in getting the best deals on credit cards. It is better to track your previous credit history before applying for a credit card as it reveals whether you are an eligible candidate or not. Get assistance from a credit reference agency to know the numbers. This will not only help you to survive from the unseen events but also, correct the past blunders. To measure the creditworthiness of repaying the debt, there is a system of credit score. The credit score is rated on a scale ranging from 300-900. The average credit score is around 650, while anything below 620 is considered bad, and anything above 700 is considered excellent. A credit score can affect the capability to fetch a credit card. However, it is wise to improve the credit ratings before applying for a credit card.

 

Application form: Once you have finalized the appropriate credit card that fulfills your needs and requirements, you can move ahead to fill the application form. You can also make an online application for the same through net banking. Furnish complete details regarding your address, identity, and income. It might take around 10-15days for the card to arrive. On the contrary, if your application is rejected, it is worth to get a copy of the credit file, to find the areas of lagging and get an alternative solution.

 

Getting a first Credit Card can be a milestone achievement but there require some adjustments to balance out its ill-effects. One might have a general idea of how a credit card function, and it can also look pretty simple, but it should be always handled carefully. The above-mentioned guidelines will help to venture further while you are applying for a credit card.