How to Apply for Your First Credit Card
14 May, 2024
Synopsis
Credit Cards offer freedom for big purchases along with rewards and cashback benefits.
Before applying for a Credit Card, assess your credit score, repayment ability and desired features.
Get the Pixel Play Credit Card with customisable options like design, billing cycle and preferred spending categories for cashback rewards, exclusively on PayZapp.
Credit Cards are a convenient and flexible payment option for purchasing various products and services. They can be used for financial emergencies or to build a credit history while also earning rewards. If you are new to Credit Cards, you can consider the Pixel Play Credit Card. This card offers a seamless digital experience and customisable benefits with various reward offers. This makes it an excellent option to be your first Credit Card. Read on to know more.
Why Get a Credit Card?
Credit Cards offer numerous benefits that can make them a valuable financial tool when used responsibly. Here are some compelling reasons why you might want to apply for your first Credit Card:
Building Credit History
Your credit history is vital for loan applications, mortgages and renting. Responsible Credit Card use such as timely repayments demonstrates your ability to manage credit well and help to improve your credit score.
Rewards and Perks
Many Credit Cards offer rewards like cashback, points or miles on purchases, which can accumulate over time and you can use them for travel, merchandise or cashback.
Cover Unexpected Expenses
A Credit Card can serve as a backup for unexpected expenses, like medical bills or car repairs. They provide immediate access to funds when necessary, provided you have adequate credit limit.
Factors to Consider Before Applying For a Credit Card
Before you apply for your first Credit Card, it is essential to consider several key factors to ensure you make an informed decision:
Assess your Spending Habits: Identify which categories you spend the most on, like groceries, dining out, travel or gas. Choose a Credit Card that rewards these categories to maximise benefits.
Credit Score: Check your credit score to understand your creditworthiness before applying. If you’re applying for a Credit Card for the first time, you may not have a credit history. However, if you have an ongoing loan and you’re repaying it on time, you may have a good credit score.
Credit Card Fees: Be aware of the various fees associated with Credit Cards, including annual fees, late fees, and foreign transaction fees. Compare these fees among different card options and choose one with reasonable fees that align with your spending habits.
Credit Card Rewards and Benefits: Some cards offer cashback rewards, travel rewards, or points that can be redeemed for merchandise or statement credits. Evaluate these rewards and benefits to choose a card that aligns with your spending preferences.
How to Apply for First Credit Card?
The application process of every Credit Card issuer varies. Here are the general steps:
Check your credit score to find cards suited to your profile. If you don’t have a credit history, you can consider a Credit Card against a Fixed Deposit. A Salary Account with the card-issuing bank may also increase your chances of getting approved for the card.
Research cards with rewards, low fees and joining benefits.
Gather documents which may include your ID, income proof and employment details.
Fill out the application form accurately.
Wait for the approval notification. It may usually take a few days. Also, avoid multiple Credit Card applications at once.
Review terms like annual fees, applicable interest rates and rewards program rules.
Once approved, follow the instructions to activate your card and start using it responsibly.
Key Terms You Should Know When Applying For First Credit Card
If you are applying for your first credit card, it is important to familiarise yourself with the following terms.
Billing Cycle
It is the period between two consecutive statements. During this period, you can make purchases and repay your outstanding balance.
Interest Rate
This is the amount you will pay in interest on any outstanding balances that carry over from one billing cycle to the next.
Late Payment Charges
These charges are imposed when you fail to make the minimum payment on your credit card by the due date.
Cash Advance
It allows you to withdraw cash from an ATM or bank branch using your Credit Card.
Annual Fees
These are charges imposed by issuers for card ownership that you must pay each year. However, in some cases, you may enjoy an annual fee waiver if you meet certain spends criteria.
Pixel Play Credit Card For First-Time Users
The Pixel Play Credit Card is a virtual Credit Card designed for the modern, digitally savvy consumer. It offers a fully digital experience, allowing you to manage the card seamlessly through the PayZapp.
Customisable Benefits
You can choose merchants from various categories to earn cashback, select preferred card designs and even pick the billing cycle date.
Seamless Digital Onboarding with PayZapp
You can simply download PayZapp and apply for the Pixel Play Credit Card through the app.
Easy Card Management via PayZapp
You can manage card controls, rewards and cashback, manage EMIs and view statements via PayZapp.
Enticing Rewards Program
The card offers 5% cashback on selected categories, 3% cashback on a choice of one e-commerce merchant and 1% unlimited cashback on all other expenses.
Pay in Parts with EMI Options
You can convert your outstanding balance into EMIs with flexible tenures on PayZapp.
Experience The Benefits of Digital Credit Card with HDFC Bank
Getting your first Credit Card helps you learn responsible financial habits while giving you access to attractive rewards. However, it is important to use it wisely and avoid debt. So, if you are getting your first Credit Card, why not make Pixel Credit Card your first choice? It provides a convenient way to make online and offline purchases, pay bills and manage EMIs, all from your smartphone. Get started here.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Credit Card approvals are at the sole discretion of HDFC Bank Limited. Credit Card approvals are subject to documentation and verification as per the Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.
