Credit Card: Upon graduating from college, many people consider obtaining a credit card. Applying as soon as possible will help you begin the process of establishing your credit history. However, there’s a catch: banks and credit bureaus don’t have much information about your credit history when you’re first employed. This can make the approval process for a credit card difficult. When determining whether to grant you a credit card, banks carefully review your credit report and score.
Understand the Basics of Credit Score
All a credit score is is a number that ranges from 300 to 900. Better still, the higher. In India, you can start establishing your credit history and obtaining your first credit card by following these easy steps:
Consider Your Salary Bank
Consider submitting a credit card application at the same bank that handles your salary account. They may be more inclined to give you a credit card if you get along well with them.
Explore Secured Credit Cards
It’s okay if your salary bank declines. Even now, secured credit cards are available. This kind of card typically has less requirements and is secured by the money you deposit. Just make sure to choose one with reasonable costs and terms.
Building Payment History
Certain retailers allow you to pay in monthly installments for items like electronics or phones. This is a good way to demonstrate your ability to manage money responsibly and make regular payments. Just make sure the payment schedule is within your means.
Specialized Credit Cards
It’s confusing to select your first credit card. Before making a choice, consider factors like fees, cashback, and rewards. You might be able to get cashback on your favourite website’s credit card if you shop there frequently. A fuel credit card might be a wise option if you ride a two-wheeler.
Timely Payments
It matters how you use credit cards. Your credit score may suffer if you fail to make payments on time. Prior to the due date, try to pay the entire amount owed, not just the minimum. This maintains a healthy credit score.
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