A Beginner’s Guide to Acquiring Your First Credit Card
Applying for your first credit card is a significant financial milestone. It can help you build your credit history, manage expenses, and even earn rewards. A credit card is a financial tool issued by banks that allows you to borrow interest-free money up to a certain limit to make purchases or withdraw cash. However, you must repay the borrowed amount within a stipulated period, usually with interest, if not paid in full by the due date.
Your first credit card is an exciting milestone, offering the convenience of interest-free spending and the ability to make purchases without carrying large amounts of cash. However, obtaining your first credit card requires careful consideration. It should teach you to manage your money effectively and help you build a credit history, which is crucial for your future financial growth.
Bankbazaar’s recent report on credit card highlights the key consideration for first timers and how they can apply and maximise their rewards. Let’s understand how to begin a journey for your first credit card.
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Age Criteria: Primary applicants must be between 18 and 60 years of age, while add-on card applicants must be at least 18-year old.
Income Requirements: Applicants need to have a stable income, typically a minimum annual income of ₹2.5 lakh to ₹3 lakh, varying by bank.
Credit History: A good credit history and a high credit score (750 or higher) significantly enhance the chances of getting approved for a credit card.
Nationality: Applicants must be either Indian residents or Non-Resident Indians (NRIs), with some banks issuing cards only to Indian nationals.
Employment Status: Stable employment, typically with a
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