How to Apply for Credit Card
Parties involved in Credit Card Transactions
- Card holder or applicant
- Bank issuing credit card
- Merchant – the individual or company accepting payments made through credit card for products and services.
- Acquiring bank - The bank that processes all transactions between the cardholder, merchant and the issuer.
- It increases the flexibility as there is no necessity of carrying more cash in hand for purchasing.
- The mode of purchase becomes easier with credit card and shopping simpler as it can be done through online or even phone.
- Credit card also gives additional benefits such as incentives to the card holder such as discount on holidays, cash back offer or insurance cover for purchases made.
- It is convenient for borrowing for a short period of time, as the interest is charged only on the unpaid amount of the cardholder and any subsequent purchases.
- The interest rates are very high and subject to change
- Merchants accepting credit cards are required to pay a processing fee to the acquirer on transactions of card.In some cases they pass the charges to the customer due to the agreement made between the parties. Thus the customer has to pay an additional charge over and above the cost of purchases.
- Cards can be stolen or misused when neglected.
Types of credit card
Some popular credit card types that are available are as follows:
Gold Credit Cards, Silver Credit Cards, Low Interest Credit Cards, Business Credit Cards, Balance Transfer Credit Cards, Cash Back Credit Cards andPremium Credit Cards
Procedure for applying for credit card:
- Choose the card that you wish to apply
- A duly completed application form along with a photograph has to be submitted.
- You have to provide the following identification documentations for proof and verification:
1. Proof of income
2. Statement copy of bank (previous 6 months).
- You can send the documents through an agent or can even courier to the given address.
- The company would verify the details given by you.
- If all the details after verification are found in order, the company would send the credit card in 3 to 4 weeks starting from the day the applicationhas been sent.
- It would issue the credit card and send it by courier to the mentioned correspondence address. The courier has strict instructions to hand over the card only to the applicant of the card. The company also provides details about the credit limit.
- It is important to sign at the back of the credit card. It serves the purpose of authentication on the spot when the card is stolen or lost.
- You have failed to clear the past loans or any payments in the bank.
- The income criteria mentioned by bank is not fulfilled.
- If the applicant is not reachable when the representative from company tries to contact for verification process.
- Bank (in Person)
Credit card payments can be done in 2 ways:
- Online payment
- In bank
- HDFC Bank
- ICICI Bank
- Standard Chartered Bank