Credit Cards are easy to use, and if smartly used, would help the user get lots of savings without having to pay any extra interest or fines. But it might not be always very easy to apply for a credit card and get the application approved. The caution that you need to exercise should begin at the initial stages, when you are ready to apply. Let us look at a few do’s and don’ts to be kept in mind while applying for a credit card :

  1. When you need a credit card, never apply at once to all the credit card companies or banks. It might seem that applying to multiple banks would improve your chances, but each enquiry by those banks would get recorded in the credit agency’s records, which ultimately would reduce your score. Also, all those records would indicate to the bankers that you are desperate to get a card, which might prompt them to reject the application.
  2. You need to match your credit card with your usage personality. A person who spends more on travel would need an entirely different card compared to a person who uses credit cards mostly for buying groceries. Before applying please go through the features of the card so that you can get complete benefits against your usage.
  3. It is instructive to read reviews of the card options that you are considering. The reason is that every credit card company would highlight its best features, but only a user would know the possible pitfalls of the card.
  4. Every credit card company would have different application criteria. It would save your time as well as the card issuer’s if you could go through the criteria and compare with your particulars, like age, credit score, salary levels, residential address (where you stay often impacts if your application would be rejected or not) etc. and only apply for those cards which you are eligible for.
  5. In case you are falling short of the minimum credit score needed, you might you’re your application rejected. A good solution would be to reach out to the card issuer and check if they would want some form of collateral from you. For example, many banks issue instant credit cards against lien marked on term deposits. Once you have built up enough good credit using this card, you could apply for a regular credit card on the basis of your improved credit