There is a misconception among many individuals that if someone is good with their management skills, they can get a credit card. While that is true to some extent, it is not always true. Irrespective of what lending institution you are considering, a few factors determine your approval for a credit card.
These factors vary from one lender to another. However, there are some common factors which determine approval or rejection. Two of the most important factors are eligibility and creditworthiness. With these two in place, you may make a shortlist of lenders and find out which one you have the highest possibility of getting approved. In this blog, we will take a deep dive to determine how these two factors influence the best card selection.
Table of Contents
The financial situation
Let us first clear up the air that there is a notable difference between credit card and debit card. Before you go on with your card selection, it is time that you take a strong look at your financial situation. Consider the existing debts, if any, income, and expenses before you go on and decide on different cards. Understanding your financial situation will help you determine how much credit you can manage responsively without debt. It is very important that you have a clear idea of your budget and how the credit card fits into the shenanigans.
Interest rates
The interest rate is the first and foremost priority when you are deciding which lender you will apply for a credit card. Yes, the interest rates vary from one lender to the other, even among the best credit cards. If you plan on carrying a balance from one month after the other, look at the interest rates the different lenders offer to see which suits you best.
Credit limit
So basically, credit limits can be considered your best friend. Despite the belief that a credit card limit is something that can prevent you from utilising a credit card fully, it is actually in place to help you be within the limit of your spending. It helps you become accustomed to your spending limit, and as soon as the lender notices that you have a good grasp of your management, they will allow you to increase the credit limit on your credit card.
Application Process
Last but certainly not least, when you are looking forward to getting a credit card, you should also be mindful of the application process. In addition to checking the eligibility criteria, you must ensure that you diligently and correctly provide the information the application asks.
Wrapping Up
The biggest answer to ‘what is the difference between credit card and debit card’ is that many monetary benefits come with it. If you are looking for a credit card that comes with zero hassle with its application, consider checking the IDFC FIRST Bank credit card.
