How to Apply Credit Card Online
What is Credit Card
In this generation where carrying heavy
cash is very risky and cumbersome too,
credit card comes as a boon and is extensively
used due to its convenience and safety.
Features may vary from one credit card to another, but there are few
common features applicable to all credit cards. They are mentioned below.
Credit Limit & Interest Rate
The maximum amount that the cardholder will
be allowed to borrow will be as per the
permitted credit limit,which is based
on income earned, past credit history, etc.
of the applicant.
An interest rate is charged on overdue balance.
The interest rate can be anywhere from 0% to 79 %.
Also a late payment fee is levied if the minimum amount as
mentioned on the bill is not paid.
Time Limit & Incentives
● The borrower gets credit for 20 to 50 days depending on the date of the bill
and not on the date of purchase of goods/service.The due amount has to be
paid by the mentioned due date and if the amount is not paid within the
given date, a grace period of few more days is granted after which interest
● The credit card holders will be given incentives depending upon the type of
credit card they are using.
Parties involved in Credit Card Transactions
The following are the 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.
The following points explain the advantages of credit card that the customer enjoys:
● 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 cardholder 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 following points highlight the disadvantages of credit cards:
● 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
● 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,
● Premium Credit Cards.
How to apply for credit card?
Credit cards are issued by banks and each bank offers different types of
credit cards. The customer can choose the card according to their
requirements. The card is issued for a period of one to three years.
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
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
● The company would verify the details given by you.
Procedure for applying for credit card :
● 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 application
has 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.
Reasons for Application Rejection
There are reasons for which your application for credit card can get rejected. The reasons may be
any of these:
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.
Credit Card Receiving Procedure
The procedure of getting credit card can be done in 3 ways: it can be done
● Bank (in Person)
Credit card payments can be done in 2 ways:
● Online payment
● In bank
Banks offering Credit Cards
Some of the banks offering credit cards are:
● Citibank Credit Card
● HDFC Bank
● ICICI Bank
● Standard Chartered Bank
It is important to remember that having credit card is not the necessity of
life, it is only convenient mode of payment of money and the most important
thing is, the credit cards have to be used sensibly.