Never had a credit card? Here’s how to get one

In today’s times, getting a credit card for the first time has turned out to be one of the major perks of attaining adulthood. However, one should keep in mind that being old enough to apply for a credit card or qualify for a credit card does not suffice- one must be responsible enough to change according to his/her affordability and pay the bill every month without being reminded. It is imperative that you acquaint yourself with some of the basics so that you do not end up spelling disaster for your credit.

1. Understand the credit card landscape for young adults: it can be quite tough to get approval for your first credit card, especially if you are under 21 years of age and do not have a job. If you do not have a personal source of income, you will have to find someone who is willing to open up a joint credit card with you or make you an authorized user on one of their credit cards. Also, since you don’t have a credit history, which is one of the prime factors considered by credit card issuers, it becomes all the more difficult to get approval.

2. Get a stable job: when it comes to getting your first credit card, it is of immense help to have a steady source of income from a part-time or full-time job. It will reassure credit card issuers of your affordability to repay a credit card balance.

3. Where to get your first credit card: 

a. Major credit card issuers: if you are enrolled in college, you have a high chance of getting approval for a student credit card. However, remember that some of these have high interest rates and annual fees.

b. Your bank: if you have been handling a savings account, you can try applying for the best credit card in India with your bank. With an existing banking relationship, your chances of approval will surely get a boost, especially if you’ve been responsible in managing your account, without any overdrafts.

c. A retail or department: these stores typically ensure easy credit card approval. However, their interest rates are also pretty high, making it expensive to carry a balance from one month to the next. Also, their usage is limited- they can be used only in that particular store.

d. A secured credit card: if your credit history prevents you from getting a standard credit card, you can apply for a secured credit card with which you can make a deposit of against the credit limit of the account. The bank holds the deposit just in case you do not make your payments as agreed. Bajaj Finserv RBL Bank SuperCard does complete justice to its name by offering a host of exclusive, industry-rich features. Wait nor further and check out its features.

4. Look for cards that target moderate or limited credit: if you are applying for your first credit card, look for those that accept applicants with moderate or no credit.

5. Ask someone for help: be it your parent, or a relative, you should have someone who is willing to guide you in your journey to getting your first credit card, often by co-signing with you. Though co-signing is risky, it can be an effective means of jumpstarting your credit. You can avail financing in a simplified and time-saving manner by just sharing a few basic details, following which you can check out your credit card application offers.

6. Don’t be discouraged by denials: do not be disappointed if your first application is rejected, in fact, it may so happen that for the first few times, your credit card application is turned down. The letter in the mail, called an adverse action notice, will include the specific reason for the rejection. It can be quite helpful in planning your next step.