Applying For a Credit Card in 2018 – Things You Should Know

Do you want to know what are the things to know when applying for a credit card for the first time?

Using a credit card in shopping mall or online shopping has become a trend now a days. No one likes to carry hard cash with them and love to pay via card instead. Also banks are making this credit card section more useful & popular for the customers with many mobile apps & contactless cards.

In metros and mini-metros even you can purchase anything from a small shop using a credit card. Getting a credit card is not at all a big deal these days, although now bank will check your CIBIL Score before issuing a credit card. But still its not a big deal to have a basic feature credit card in your wallet to keep your style statement within your friend group.

But do you know what to look for when applying for a credit card. There are many small things that you should ask your bank or you should know before applying for a credit card for the first time.

Things to Know When Applying for a Credit Card

Here we will share few of the common factors to consider when applying for a credit card. You should inquire or ask these questions to your bank before you apply credit card online or offline.

1) Every credit card has some joining fee. If your organisation has certain collaboration with some banks then you might get this joining fee waive off. So its always better to go with such banks or you can ask for this.

2) Sometimes many banks offer credit card with 0 joining fee, but they will charge you on yearly basis in the name of membership charge. i.g. Standard Chattered Bank’s Manhattan Credit card is very popular feature packed credit card.

If you hold this card then you have to pay Rs 999 every year as membership charge whether you use that card or not. So ask your bank about this and decide whether you are going to use your credit card to such extent that you can afford to pay the membership charge.

3) Now a days you can withdraw cash from ATM with your credit card also. But do you know that this is one of the riskiest step as bank will start charging interest on your with-drawal money from day one. And in such case interest rate is also very high. So do a proper enquiry about the interest rates and try to use this facility only when you don’t have other options.

4) In many small shops using a credit card will add more burden you. They might charge you 2-3% more than the product value when you pay by credit card. Even in petrol pumps if you purchase petrol they will charge 2% extra for some credit cards. So be alert and aware about this and stop misuse of your money.

5)Always remember the billing due date, so that you can avoid penalty. In case you don’t have money to repay the entire amount then pay the minimum amount due to avoid penalty.

6) In case you lost your credit card then how to handle the situation and stop misuse of that card, ask about that to your bank and always carry those 24×7 contact numbers with you. Write all necessary details of your card in some note and carry with you.

7) In case you don’t want to use the card any more, in such a case what to do? Ask about the steps, any fees etc to your bank.

8) In case unfortunately you die due to some accident then who will pay your bill? In case you want to carry some insurance, you can ask and clarify from your bank. Otherwise your family might suffer unknowingly.

These are few tips before applying for a credit card & you should get detailed from your credit card issuing bank. Besides that you have to keep your card safe so that you can avoid any miss-use online or offline. Don’t purchase anything beyond your repaying capacity, which will further add your interest burden. If you can’t repay on time then banks will charge 3% interest per month which means around 36% yearly basis which is a very big amount. So be careful with your expenses.

Please share in the comments below if you think any more points should be added before applying for a credit card.

Recommended For You


  1. Very nice tips that can ease a person’s daily hectic n busy life. Thanks for sharing.

  2. very nice,Knowledgeable information.. thanks for posting this type of useful articles.
    in present days e-payments & plastic money is the trend. even its a better way to make you transaction without handling cash.
    you can use your credit cards in various ways.
    also get some bank offers & discount offers by using credit card while payments to any online marketplace.

  3. Great article. I also want to get a credit card but cibil score scares me. This is because I have heard that non payment in credit cards due to any reason also lowers down your cibil score. Is that true?

  4. Hi, great article.
    Unfortunately I am a victim of low cibil score and was looking measures to improve it as I also wanted to avail a personal loan to renovate my house. Please suggest me as the banks keep cibil score as the fundamental factor in giving loans

Comments are closed.