A report by CRISIL estimates that digital lending will account for 16% of all retail loans (credit cards, personal loans, etc.) in the next 5 years, which is currently at only 6%.
Another report by the Boston Consulting Group predicts that the digital lending sector for retail loans can be worth $1 trillion in the next 5 years, growing by five times the current market size.
The primary drivers of this market are increasing internet users and a growing number of fintech companies. Almost all financial institutions have made their application processes online. Now, availing an online credit card takes minutes and involves no paperwork.
The process to apply for a credit card usually involves only two steps –
After providing the above-mentioned details, an applicant can apply for the same. Credit card providers usually show whether the application has been approved or not instantly.
Generally, existing customers of a financial institution don’t have to go through any paperwork; new customers may have to submit a few documents with the representative of the company.
After applying, individuals will also be able to check their credit card application status online.
It should be noted here that individuals must be above the age of 25 and hold a credit score of 750 or above to be eligible for a credit card.
After knowing how to get a credit card, it is essential to understand how individuals can pick the right product for themselves.
Individuals must consider the following points before choosing a card –
The majority of credit cards focus on particular expenses, like travel, online shopping, fuel, grocery, etc. Individuals need to assess what they spend most on and search for a card accordingly.
For instance, they should look for a product that offers benefits on online shopping if their majority of transactions originate from the same.
The two primary charges that individuals should check are joining fees and annual fees. An annual fee is usually the same as the joining fee but paid yearly.
There are few credit cards which do not levy such charges. However, such cards usually require the applicant to have a particular income, which tends to be in the upper range.
Other charges that individuals should check to include –
Generally, an online credit card that comes with more features levies higher fees and charges.
Reward points are one of the most lucrative benefits that make credit cards more worthwhile than debit cards. These points can be earned through every transaction; however, some particular expenses may return higher points than others.
Customers can redeem their credit card reward points in the following ways –
Cardholders can not only earn reward points through transactions but also when opting for the card and crossing a particular amount of spends in a year or month.
Apart from reward points, individuals should also check the other benefits that an online credit card.
Some of these can include –
Credit cards like the Bajaj Finserv RBL Bank SuperCard also offer industry-first features. These include zero interest in ATM cash withdrawal and emergency personal loans for up to 50 days and 90 days, respectively.
After availing an online credit card, users should always pay their total amount due. Doing the same will improve their credit score.
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