Credit cards have emerged over the years as a preferred medium of transaction. They facilitate a hassle-free payment process. There are various iterations of this financial product in the current market, and the free credit card is one of the most popular currently. As you plan to apply for it, you must be well aware of the eligibility, necessary documents, and a few other areas to avoid delays in the process.
Eligibility Criteria for a Free Credit Card
General income requirements differ depending on financial institutions. Borrowers must have a steady source of income to be eligible for a credit card. You can either be a salaried individual of a company or a self-employed person to qualify for it.
Credit Score Requirement
Sometimes the credit card provider can have a specific credit score requirement, and the borrower must satisfy the same to be eligible for this payment card.
Employment Status Requirement
A stable job for years enhances the trust in your repaying capability. On the other hand, if you tend to switch jobs frequently, it creates an issue. Also, if your business is performing well, you will qualify under this criteria.
Documents Required for a Free Credit Card
Submitting these documents to your lender is obligatory to apply for a credit card.
- Identification Proof: PAN card, Aadhaar card, voter id, driving license, and passport.
- Address Proof: Utility bills, passport, Aadhaar card, and voter ID card.
- Income Proof: Salary slip and Form 16 for salaried individuals, ITR and profit and loss statement for self-employed individuals
- Employment proof (if applicable)
- Proof of business
Steps to Apply for a Free Credit Card
Research and Compare Credit Cards
The first step to get a credit card is to do a thorough research. You will get numerous credit card companies in the market offering a credit card. But all have different terms and conditions, including the credit limit, additional perks, and repayment terms. Before finalizing one, you should know all these details and see which aligns with your interests most.
Check Your Credit Score
Credit card companies prefer a good credit score. When you have a good credit score, your chances of getting approval for an increased credit limit are high. You should check your score with your credit card company and see how much credit limit you get. Go ahead with the credit card offering you the limit you will need.
Gather Necessary Documents
After selecting your lender, check the documents you need for the application. Gather all the necessary papers and keep them in one place to avoid future delays.
Fill Out the Application Form
The next step is to fill out the application form. You must find one from your credit card company’s official website or mobile application. Fill in all the details required carefully, and they should match your documents.
Submit the Application Form
After filling out the application form, you must make the final submission. Click on the submit option for that.
Wait for Approval
Now you have to wait for the approval message of your lender. Your lender will contact you on the registered phone number or email id.
Things to Keep in Mind While Applying for a Free Credit Card
Carefully Read All Terms and Conditions
Multiple credit card types are available in the market with different features and limitations. Lenders also have different terms and conditions for approving a free credit card. You need to read and go through these instructions carefully and understand them very clearly. Then only you can decide which one is best for you.
Understand All Charges Associated with the Card
Sometimes lenders may impose additional charges on your credit card, like annual membership and joining fees, ultimately increasing the cost of maintaining the card. You must check with your credit card provider to learn more about these charges.
Know the Rewards and Benefits Offered by the Card
Credit cards are famous for offering rewards and discounts. Some lenders offer benefits specific to one sector, like traveling and dining. Understand where you spend more and look for a credit card that maximizes rewards.
Use the Card Responsibly
Only getting a credit card is not the end of your credit problems. Use the card responsibly and maintain sound credit health. Overspending because you do not need to pay now will create a debt trap. You will end up paying a considerable amount later on.
Hopefully, now you know the application process and other essential details of a free credit card. Keep this guide handy and find a credit card that suits your requirements.