Applying For Your First Credit Card? Here’s What You Should Know


Applying For Your First Credit Card? Here’s What You Should Know

Credit cards allow consumers to make instant credit transactions and have become a primary way for people to make payments. Credit cards have many advantages but can easily lead you into a debt trap if not used diligently.

Applicants must be 18 years of age and have a minimum income between 1 lakh and 3 lakh to be eligible. So if you are planning to apply for your first credit card, it is always better to research and learn to use your card to reap financial benefits. Let’s have a look at some important details.


There are different kinds of credit cards available, so it is important to identify the credit card that suits your needs and comes with a cheaper annual fee.

The credit card issuers will request for your income details to confirm your reimbursements. Your income gives the issuer assurance that you will cover your bill on or before the time limit. With a hike in salary, the variety of credit cards also increases.

To begin with, low credit limit cards is offered to minimise the detriment. But once the user settles into the rhythm and begins to pay the dues regularly, the lenders update your credit limit time and again.

It is necessary to carefully look at the terms and conditions and learn about Annual Percentage Rate (APR) nature of the card, the charges like joining fees, annual fees; reward points and all other important information that makes swiping your first credit card a smooth process. APR, which hovers around 30-40 per cent, is an interest levied on the unsettled amount within a specified timeline.

All credit card users are allowed a grace period to clear their dues, failing which interest will be charged on the outstanding amount. The grace period is the duration between the end of the billing cycle to the next billing date.

Missed payments adversely affect your credit rating and reduce your credit score. Financial preferences and debt recovery determine your credit score.

Therefore, being eligible to apply for your first credit card comes with a sense of achievement and a responsibility and a challenge to strike a balance between the amount spent and your financial comfort.



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