Credit cards are gaining massive popularity among Indian cardholders due to the wide range of benefits it comes with. As many as 44.2 million credit cards issued in India till December 2018.
Credit cards come with various associated charges which may differ between credit card issuers. These charges can considerably increase the expenses associated with the card. However, there a lot of card issuers who offer a credit card without annual fee. Here is a step by step guide of how to apply for a credit card in 5 quick steps
Step 1 – Visit the card issuer personally or their website
To avail a credit card without annual fee, an applicant must visit the website of a card issuer or visit them personally. An applicant must provide a few necessary details to get the application process on track.
Step 2 –Check the options available for a credit card without annual fee
A card issuer offers an applicant with a plethora of options to choose from. An applicant must enquire about the details and benefits that are associated with each credit card. You must be aware of how to choose the most suitable credit card for yourself to benefit from it the most.
Step 3 – Fill up the application form
Applicants need to duly fill up an application form after they decide the right card for them. They can obtain this form personally from card issuers, or they can download it from the website of card issuers.
Applicants need to make sure that there are no errors in the application form. Any discrepancy between the details mentioned in the application forms and documents provided can lead to rejection of a credit card application.
Step 4 – Provide the required documents
Financial institutions ask for the required documents once an applicant submits a form. Applicants need to submit proper documents to continue with the process of availing a credit card.
The required documents that an applicant needs to submit can vary according to the requirement of different card issuers. Here are the documents that are mainly needed.
- Identity proof
- Address proof
- Passport sized photographs
Step 5 – Complete the verification process
Card issuers conduct a thorough check on the documents submitted by an applicant. Also, they may send personnel for physical verification of the address and the employment details. On completion of the verification process, card issuers decide if the application should be accepted or not. They usually dispatch the credit card within a few days if the application is approved.
Factors that affect the eligibility of a credit card with no annual fees
- Credit score
Financial institutions determine the creditworthiness of an applicant via the credit score. A good credit score indicates that an applicant is more likely to pay the bills in time. In such cases, card issuers are expected to offer applicants with various benefits including low credit card processing charges and no annual fees.
The Bajaj Finserv credit card that comes with minimal such charges but with multiple additional benefits such as –
- ATM cash withdrawal with zero interest up to 50 days.
- Emergency personal loan without interest up to 90 days.
- Joining bonus of up to 20,000 reward points.
They also provide pre-approved offers on credit cards to make the process of availing them quick and hassle-free. Pre-approved offers are valid on several financial products and services, including home loans, personal loans, business loans, etc. You can check out your pre-approved offer by sharing a few necessary details.
- Credit history
The credit history of an applicant is a crucial factor to avail a credit card without annual fee. An applicant with no prior record of defaulting is more likely to enjoy such cards.
- Income & employment history
Card issuers consider the income and employment history of an individual as a crucial determinant to gauge the creditworthiness of an applicant. A substantial amount of income with a constant employer indicates that the applicant is likely to make payments on time. Hence, card issuers tend to offer credit cards on favourable terms such as low processing charges, no annual fees, various reward programs, etc.
The points mentioned above should be able to help you to avail a credit card without annual fee. Make sure that you check the eligibility criteria before applying.