You will feel financially liberated once you start using a credit card. Credit cards offer many benefits to customers, including pre-approved credit limits, up to 50 days of interest-free credit, and value-added features such as cashback and rewards. Therefore, online credit card apply and owning a credit card has numerous benefits. There is no doubt that when it comes to online credit card applications, the number of options available might seem overwhelming. However, considerations such as your spending habits and the need for a credit card are the most important aspects that will help you make the right choice. Further, credit cards also play a very important role in building your credit score and damaging it.
The banks may offer you credit card deals when you perform online credit card application, but that still does not suffice as a convincing reason for you to take up the credit card. If you use them sensibly, they can be beneficial to you in various ways. In cases where you can obtain a secured credit card instead of an unsecured credit card, you should take advantage of it to at least improve your credit score by paying your credit cards on time. To get a credit card, you need to have a sufficient understanding of the process and be sure that you will be able to use it effectively for your benefit, but you should not hesitate to apply for one once you have this understanding.
Important Factors to Know Before Applying for a Credit Card Online
Charges
- Membership and Annual Fee: You will be charged a one-time joining fee when you perform the online credit card application process for a new credit card. Some banks offer credit cards with zero joining fees, while some premium credit cards have a membership fee. Therefore, you should consider a card with no joining fee when applying for a credit card.
- Annual Fees
There is a fixed annual fee that you will be charged every year, which is usually the same as your joining fee. You may also be able to waive this fee upon meeting certain spending milestones.
- Finance Charges
The amount is rolled over to the next billing cycle if the cardholder fails to repay the outstanding balance for the billing cycle. In addition to the finance charges on credit cards, additional charges range from 24 to 48 percent annually. If all other factors remain the same, the best option is to choose a card with a low-interest rate.
- Payment Late Fee
A late payment charge will also be assessed in the following statement cycle if your payment is completely missed.
- ATM Withdrawals
You will be charged between 2.5% and 3.5 % per transaction when using credit cards to withdraw cash from ATMs. When you withdraw cash, you should only use it for emergency purposes. For this reason, new users are advised to stay away from this facility.
- Over Limit Fee
A credit card comes with a predetermined credit limit; as you exceed this limit, you will be assessed an over-limit fee. The fee can range from 2.5% to 3.5% on average.
Interest-Free Period
The majority of credit cards, such as Fuel credit card India, movie credit card India, and rewards points credit card India comes with an introductory interest-free period that lasts from the transaction date until the date on which the payment is due. If you can make full payment of the amount you have used on your credit card before the end of the interest-free period, you will not be required to make any additional payments to the bank. You will, however, be required to pay the applicable interest fee, which is typically quite expensive, after the date on which your payment is due. It is best to practice paying the total amount due regularly to avoid incurring additional fees or charges. The account is subject to the imposition of these various fees for various reasons. Before moving forward with the online credit card application process, it is necessary to read the terms and conditions of the card in detail.
Minimum Payment
As part of the credit card agreement terms, you will be required to settle either the minimum payment or the full amount, depending on the transactions that you have made using the credit card. You always have the option to pay more than the required minimum payment if you so choose. The minimum payment amount is determined by either taking a predetermined percentage of the total interest accrued on the account or taking that total and adding one percent to the principal balance. The formula to determine the minimum payment amount can vary from card issuer to next. Before you put your signature on the credit card application form, you must make sure that you fully comprehend the method used by the card issuer to determine the minimum payment.
Conclusion
Taking out a credit card for the first time is a great accomplishment on the one hand, but it is not an easy task to do on the other hand. To properly use a credit card, you must fully understand its functionality and read all the terms and conditions.