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What is Credit Card and How to Apply It Online?


Credit cards are a financial product offered by lending institutions that can be utilised for purchase or payment of various products and services. Unlike debit cards, these credit cards do not require you to pay before making a purchase. Instead, the spent amount is added to your line of credit.

What is the definition of a credit card?

To understand what is credit card, realise that here you borrow funds from credit card lenders at the time of purchase which is paid later by you. Subsequently, below are a few credit card terms that everyone must be aware of to get a thorough knowledge about credit cards.

  • Credit limit

Each credit card has a limit which is the maximum amount of fund that particular user can utilise using that card. However, exhausting the credit limit is not at all recommended as it can impact your credit score adversely. Usually, individuals should utilise around 30% of the credit limit available to them as that can be one of the ways how you can use a credit card to improve your credit score.

  • Billing cycle

A billing cycle is a period between which bills for a credit card is evaluated. This billing cycle is usually 30 days and can start from any day of the month depending upon the time you have availed a credit card. For instance, billing cycle can be from 15th of the present month to the 15th of next and not necessarily the first or end of every month. Note that this is the bill generation date after which you can pay the spent amount in full or parts.

  • Grace period

15-20 days additional time is granted to individuals for payment of this credit card bill post their bill generation date. This additional time given to credit applicants is the grace period. Individuals making payment within the grace period can avoid paying interests on the credit availed. Consumers can look for convenient ways to pay their credit card bills beforehand to ensure they don’t have to face any hindrance while making timely payments.

  • Interest calculation on credit cards

Interest is calculated on the spent amount only after an individual fails to make the due payment within the grace period. In case the applicant wishes to pay the borrowed amount in next month, interest will be levied on it. Besides, financial institutions let users withdraw funds via ATM and utilise it for emergencies. Bajaj Finserv RBL Bank SuperCard is one such card that let users withdraw 50-day interest-free emergency cash.

How to apply for a credit card online?

Applying for a credit card online requires candidates to follow up on these steps –

  1. Fulfil the eligibility criteria

A consumer knowing what is credit card and opting for the same should make sure that they fulfil the below-mentioned eligibility conditions first as this is a major factor of evaluation of their applications.

  • An applicant’s age must be within the range of 25 to 65 years
  • A credit card applicant must bear a decent CIBIL score of 750 and above
  • An applicant must not be a credit defaulter

  1. Look for an easy application procedure and apply

Easy application procedures reduce an individual’s burden and help them acquire credit cards without any hassle.

To accommodate users with such convenience, non-banking financial companies like Bajaj Finserv provide pre-approved offers on credits. These offers are applicable to several financial products that include credit cards home loans, personal loans, business loans etc. Check your pre-approved offer as you submit essential data such as name and contact information.

Subsequently, individuals can select the suitable type of credit card as per their lifestyle and fill up the application form online. On successful processing and verification of data, candidates will be provided credit cards.  This is the basic procedure an individual has to follow to know how to apply for a credit card.

Therefore, credit cards can help you get instant access to funds as they do not require you to pay at the moment. Rather the accumulated funds get added to your line of credit which is to be paid later.

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