How to use your First Credit Card wisely 

What is Credit Card?

A credit card is a type of payment card that allows the holder to borrow money from the issuer in order to make purchases or pay for services. The cardholder is required to pay back the borrowed amount, plus any interest or fees, at a later date. Credit cards are issued by banks and financial institutions and are typically used for everyday purchases such as gas, groceries, and online shopping. They can also be used for larger purchases such as vacations or home repairs. Credit cards often have rewards programs that offer points, cash back, or other benefits for using the card.

How to get your first Credit Card in India?

  1. To get your first credit card in India, you will need to follow these steps:
  2. Check your eligibility: Different credit cards have different eligibility criteria based on factors such as your income, credit score, and employment status. Check the eligibility criteria for different credit cards and choose one that you are eligible for.
  3. Compare credit card offers: There are several credit card offers available in the market. Compare the features, fees, and benefits of different credit cards to find the one that best suits your needs.
  4. Fill out the credit card application: You can either apply online or visit a bank branch to fill out the credit card application. You will need to provide personal and financial details, such as your name, address, income, employment status, and credit score.
  5. Wait for approval: After you submit the application, the bank will review your details and decide whether to approve or reject your application. If approved, you will receive your credit card within a few days.
  6. Activate your credit card: Once you receive your credit card, you need to activate it before you can use it. You can do this by calling the customer care number provided by the bank or by activating it online.
  7. Use your credit card responsibly: It is important to use your credit card responsibly to avoid falling into debt. Always pay your bills on time and do not exceed your credit limit.

Which documents are required to get your first Credit Card in India?

To get your first credit card in India, you will need to provide the following documents:-
  • Proof of identity: This could be a government-issued ID such as a PAN card, Aadhaar card, or passport.
  • Proof of address: This could be a utility bill, bank statement, or rent agreement showing your current address.
  • Proof of income: This could be a salary slip or income tax return statement showing your income.
  • Passport size photographs: You will need to provide two passport size photographs for the credit card application.
  • Signature verification: You will need to provide a sample of your signature for verification purposes.
  • Form 16 or salary certificate: If you are applying for a credit card based on your income, you may need to provide a Form 16 or salary certificate issued by your employer.
  • Business documents: If you are applying for a credit card as a self-employed individual, you will need to provide business documents such as your GST registration certificate, business registration certificate, or partnership deed.

Which banks and NBFCs are providing Credit Card in India?

There are several banks and non-banking financial companies (NBFCs) that provide credit cards in India. Some of the banks that offer credit cards are:
  • State Bank of India (SBI)
  • HDFC Bank
  • ICICI Bank
  • Kotak Mahindra Bank
  • Axis Bank
  • Bank of Baroda (BOB)
  • Canara Bank
  • Union Bank of India
  • Bank of India
  • Punjab National Bank (PNB)
Some of the NBFCs that offer credit cards are:
  • Bajaj Finserv
  • Tata Capital
  • Fullerton India
  • Capital First
  • IDFC First Bank
  • Aditya Birla Finance
  • Reliance Money
  • Magma Fincorp
  • Muthoot Finance
  • Shriram City Union Finance

How to use your First Credit Card wisely 

  1. Use your credit card only for emergencies or planned purchases. Avoid using it for impulsive or unnecessary purchases.
  2. Pay off your credit card balance in full each month to avoid paying interest on your purchases.
  3. Shop around for a credit card with a low interest rate, especially if you plan to carry a balance on your card.
  4. Use your credit card for rewards programs, such as cash back or travel points, but be sure to pay off your balance in full each month to avoid interest charges.
  5. Use your credit card for large purchases, such as travel or home repairs, as credit card companies often offer additional protection for these types of purchases.
  6. Monitor your credit card statements regularly to ensure all charges are accurate and to catch any fraudulent activity.
  7. If you have multiple credit cards, consider consolidating them onto one card with a lower interest rate to save on interest charges.
  8. Don’t max out your credit card, as this can hurt your credit score and make it harder to get approved for future loans or credit cards.
  9. Consider setting up automatic payments to ensure your credit card balance is paid off on time each month.
  10. If you are having trouble paying off your credit card balance, consider speaking with a financial advisor or credit counselor to create a plan to pay off your debt.

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