Credit cards are a type of payment option that allows you to borrow money to make immediate purchases. When using a credit card, a borrower takes money from the credit card company and promises to repay the money with its due interest within the stipulated time period. There is a limit to the amount of money you can borrow from your credit card. Your credit card issuer determines this amount based on your credit score, income, and credit history. Credit cards are also accepted around the world, which makes them a popular choice to pay day-to-day expenses.
Credit cards are a popular personal finance tool because they offer several benefits to consumers including flexibility, convenience, and the ability to build credit. Credit cards also offer reward programs such as cashback, points, or miles, depending on the number of purchases you make with your card. When applying for credit cards, you must take note of the kind of benefits your issuer offers, what kind of fees they charge, and how much interest they take.
ApnaPaisa is one of the largest loan distributors in India, leveraging the power of technology and digital analytics to stand out from others. They offer a wide range of high-quality financial products, from which you can take your pick. Here is a list of 5 reasons why you should apply for a credit card on ApnaPaisa.
- Reward points: One of the best benefits of applying for a credit card via ApnaPaisa is the reward system. As you keep making purchases on your card, you can win reward points, get direct cashback, and collect air miles. Do you want to use your credit card for travel, daily expenses, or to build credit? Based on your requirements, you can select a card that aligns with your goal. For instance, if you travel frequently, a card with airline miles or hotel points would be most beneficial.
- Cash advances: If you need cash urgently, you can use your credit card to withdraw cash from an ATM. Most typically, cash withdrawals from an ATM do not have a grace period, which means that interest starts accruing from the moment you take out the cash. If you use your ApnaPaisa credit card to withdraw cash urgently from an ATM, make sure to pay that balance in full that month.
- Interest-free credit facility: The biggest benefit of applying for a credit card through ApnaPaisa is the 45-day interest-free credit period. During this period, you can purchase any item with your card at zero interest, provided that you pay off the minimum amount due and do not exceed the credit limit. Make sure to read through the terms and conditions before making any extensive purchase during this interest-free period because the interest will apply after the promotional period ends. This is why you should pay off the balance before the end of this period to avoid interest charges.
- Revolving credit: ApnaPaisa also offers a revolving credit facility to their customers. You can take out a certain amount of funds and still have access to the remaining credit limit. You can either pay the balance in full at the end of the month or pay the minimum amount due and carry over the balance to the next month. It is advised that you try to keep your payments updated, for credit cards typically charge comparatively higher interest rates.
- Converting purchases to EMI: ApnaPaisa also offers you the facility to convert your credit card purchases into EMIs. It allows you to pay off your balance for a longer tenure, typically ranging from 3 to 24 months, with fixed monthly payments and interest charges. The conversion process is simple. You have to reach out to ApnaPaisa, choose the purchase you want to convert, select the EMI tenure, and approve the terms and conditions. Do compare the cost and benefits before converting to EMI, for the interest rate on EMIs may be higher than the standard interest rate on credit card purchases.
Eligibility criteria to apply for a credit card via ApnaPaisa
- Age: You must be 18 years and above to apply for a credit card via ApnaPaisa.
- Credit score: You must have a credit score of above 750 to apply for a credit card via ApnaPaisa. Without an excellent credit history, you cannot apply for a credit card.
- Income: If you are from a metropolitan city, you must have a net income of above INR 20,000 and if you are from a non-metropolitan city, you must have a net income of above INR 15,000 to apply for a credit card via ApnaPaisa.
Documents required to apply for a credit card via ApnaPaisa
The list of documents required to apply for a credit card may vary from one lender to another. ApnaPaisa requires you to submit,
- Proof of identity: PAN card, Aadhar card, Voter ID
- Proof of address: Aadhar card, utility bills, lease documents, property purchase document, driving license, passport
- Proof of income: Salary slips, account statements, Form 16 for salaried professionals, ITR statements and bank transactions for self-employed individuals, partnership deed, GST registration, certificate of practice, and Shop Act License for people who run a business
How to apply for a credit card via ApnaPaisa?
Follow these steps to apply for a credit card via ApnaPaisa.
- Head to the official website of ApnaPaisa and go to ‘Credit Card’.
- Once the ‘Credit Card’ window opens, you have to click on the ‘Apply Now’ button on the top right-hand corner of the screen.
- Fill out the registration form with all your basic and professional details such as occupation, age, city of residence, contact number, and so on. Click on ‘Proceed’.
- A compilation of credit card options from different lenders will show up. Choose the one that best meets your requirements, based on your eligibility and credit score.
- You may have to fill in other additional details and submit the necessary documents.
- Once your lender approves your credit card issue request, they will send you an e-confirmation. Soon after, the ApnaPaisa credit cards team will get in touch with you to proceed with the rest of the documentation process.
Using credit cards for daily expenses is a great opportunity to build a credit history. However, one of the drawbacks of a credit card is the high-interest charges, fees, and the risk of accruing debt. It is quite easy to be carried away when borrowing money using a credit card. Hence, you must track your expenses and make sure that you have enough spare money at the end of the month to pay your dues in full. If you miss payments, the interest amount will snowball into an even more impossible number. You must also understand the terms and conditions of your credit card agreement and use it responsibly to avoid any financial pitfalls.