As a credit card holder, you will be allowed to purchase goods and services on credit from the financial institution you hold the card with. The borrowed amount can then be repaid to the bank within a stipulated timeframe. Certain credit cards allow you to withdraw cash on credit.
While the money spent using a credit card is a debt on a cardholder, the cardholder benefits from it by availing attractive benefits, services, and points from the financial institution. Unlike a loan amount, the credit card amounts are smaller and can be borrowed by the cardholder from time to time depending on the need.
How Credit Cards Work
A credit card helps you swipe the card at the point of sale machines whenever you purchase services and goods. Each cardholder has a pre-set credit based on his previous records. The credit card balance is expected to be paid off every month and if you manage to pay the entire amount, there will be no interest levied on the borrowings. But if you cannot pay off the entire credit then a designated interest will be levied on the borrowings. Cash withdrawals attract a greater rate of interest than for purchases. By paying a minimum balance on your card you can continue using the card.
Applying for a Credit Card Online
It is always a given that before you enter into anything, do make a thorough research about what you are getting into. Same is the case with applying for a credit card. Banks and financial institutions offer a plethora of credit cards with various benefits and features. Before you pick on the one that suits you, make sure you are well aware of all the options laid in front of you.
Since the demand for credit cards is high these days, banks and financial institutions make this process easily accessible on their web portals. When you have zeroed upon the bank you want to apply for a credit card with, you will have to visit their portal and fill out the basic details in the online application. You can also apply for credit cards at PaisaWala.com an authorized partner with many banks.
Soon after, a representative will get in touch with you and help you in the process of setting up an account. The representative will collect all the required documents from you and your card will be couriered to your address in a few business days.
Applying for a Credit Card Offline
If you are uncomfortable with online dealing and would like to physically get in touch with the bank, you may do so by visiting a branch. The representative at the branch will help you understand the workings of every card available with them and help you sift through the card that best works for you. After making a choice, you may now fill up the required application form for a credit card.
Apart from filling up the application form, you will be required to provide the following documents to complete the procedure:
- Income Proof
- PAN details
- Address Proof
- Two Passport size photos
After the bank inspects your credentials, the credit card along with the pin will be couriered to your official address provided.