For years, applying for a credit card was a gamble. Unless one had a strong financial background verified by banks in advance, credit cards were out of reach. As a matter of fact, this cycle cut millions of Indians off from the formal financial ecosystem - which is now being broken. The credit card industry is seeing a paradigm shift, and the options on the table now are exponentially diverse compared to what the previous generations had access to.

Credit Score Is Not The Only Way In

It is a common misconception that one needs a completely clean slate in terms of credit history before applying for a credit card. In fact, there are credit card products in the market that are explicitly designed for people who do not have a strong credit history. A credit card without credit score requirements makes this possible, with the approval process relying on a fixed deposit or income proof as an alternative rather than a bureau score. This way, there are credit card products suitable for everyone: from first-time credit seekers to young professionals launching their careers to people with a flawed credit history.

Your Score Today Is Not Your Score Forever

It is important to note that a low credit score is not necessarily a permanent marker. The credit bureau system is adaptive, and what matters is one’s ability to repay loans and credit card dues on time. For people who fall under the ‘bad credit score’ category, there are credit card products that let one begin the road to rebuilding their credit history. If one were to Google “low CIBIL score credit card apply”, they would see that the requirements differ from a regular credit card application, as these cards require a fixed deposit as collateral. At the same time, using such a credit card responsibly (keeping one’s credit utilisation within 30%) helps raise one’s bureau score significantly. Everything done on the credit card, right from applying for it to making purchases, builds one’s credit history. Therefore, it is vital to use the credit card responsibly in order to build one’s creditworthiness.

Choosing The Right Credit Card From The Start

Not all credit cards are created equal. Depending on one’s financial standing and credit history, there are different credit card products designed to serve people at different stages of their credit journeys. The best credit card to apply for as a first-time credit-seeker is the fixed deposit-backed credit card. For people with a low-to-moderate credit score who are looking to build credit history, a cashback credit card is useful insofar as it allows one to keep spending on daily necessities while building credibility.

The four most important questions to ask before applying for a credit card include the following: How much credit limit will I get? How much will I have to pay as an annual fee? Does the credit card report to all credit bureaus? Do I have the documents mentioned in the application? Getting clear answers to these four questions before submitting any application saves time, prevents unnecessary hard enquiries on your credit profile, and ensures the credit card you choose is actually built for where you are right now.

Speed And Simplicity Now Define The Process

Thanks to a digitised and formalised application process, applying for a credit card is now simpler and faster than ever. Gone are the days when one had to go to a bank branch and fill out extensive paperwork. Now, there are instant online credit card applications with a digital KYC. This way, time spent on applying for a credit card is reduced drastically. Moreover, some credit card companies even let one view their card details online as soon as the application is approved. In other words, one can go from applying for a credit card to shopping online with it virtually within the same day. One can even apply for a credit card online without visiting a bank branch at all. In fact, the application fee for credit cards has also gone down significantly. In short, applying for a credit card is now a smooth digital experience with minimal hassle involved.

Conclusion

Whether you are a first-time applicant, someone attempting to rebuild a troubled credit history or simply someone who wants to expedite the credit card application process, this article mentioned everything you need to know before applying for a credit card. Maintaining a low credit utilisation ratio, paying bills on time and choosing the right credit card from the start will determine one’s financial trajectory long into the future. So, get started with a fixed deposit-backed credit card today.