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As per the report by Reserve Bank of India, in November 2019, PoS transactions approximately worth Rs.182.5 million were made using credit cards. This number is one of the indicators that Indians are slowly shifting to contactless tap-and-go forms of payment options. Additionally, the number of individuals using multiple credit cards in India is also on the rise, thanks to the convenience and features this payment card accompanies.
Nevertheless, managing multiple credit cards and paying the bills in time also require critical prudence. Therefore, individuals who already hold one or multiple credit cards need to pay heed to some essential factors before applying for another one.
Tips to increase the chances of approval for the next credit card
A credit card is a versatile financial tool that helps individuals in different financial aspects, like establishing credit, increasing purchasing power, and acting as a financial lifeline, especially during emergencies.
However, existing cardholders planning to opt for another credit card can consider the following credit card tips to get their application approved instantly.
- Maintain a gap between two applications
While more credit cards mean improved benefits, card providers do not consider this as a good practice. Therefore, individuals who already carry a credit card should wait for at least a year before applying for another one to build a reliable credit history.
Moreover, frequent credit card applications can make you look credit hungry and also simultaneously increase the chances of defaulting. Therefore, try to maintain a gap of six months to one year before making another application for a suitable credit card in India.
- Lower your credit utilization ratio
Though all credit cards in India offer a credit limit as per user eligibility, it does not mean you need to exhaust the limit every month, especially if you are aiming for multiple credit cards.
Most financial experts advise using not more than 50% of the total credit limit available. It thus, in turn, helps in increasing your eligibility for multiple credit cards due to reliable repayment capacity. Therefore, use your existing credit cards wisely to improve your eligibility for the next ones, for instance, avoiding numerous big-ticket transactions in a single month, etc.
- Clear all monthly credit card debts in full
Another excellent way to get your next credit card approved conveniently is to clear the recurring monthly bills in full. While it assures the issuers about your repayment capability, it becomes easier for you to represent a disciplined credit habit.
However, it is advised to consider the pros and cons of carrying multiple credit cards in India. It helps you manage your existing debts efficiently.
- Opt for a pre-approved offer
If you are planning to apply for multiple credit cards, you can look for cards with pre-approved card offers.
Credit cards like the SuperCard are also available with pre-approved offers that make the credit card approval process straightforward and prompt. Such an offer applies to several financial products offered by the concerned card provider, like personal loans, business loans, and others. All you need to do is submit your name and contact number to check your pre-approved offer.
Along with this feature, the card also accompanies a host of benefits. They include the likes of interest-free ATM withdrawal up to 50 days, emergency personal loan against the unutilized credit limit, attractive reward programs, among others.
- Take essential measures for credit score improvement
Since the number of defaulting on credit card debts is gradually on the rise, card providers keep the credit history and score as an essential requirement for applicants to qualify. Thereby, you need to maintain a good credit score of preferably 750 and above to convince your issuer of your repayment capacity and credit habits.
Along with that, before applying for your next credit card in India, check the eligibility criteria with your selected card provider. If you can tick off most of the eligibility criteria, it would indicate an improved chance of approval.
Along with following these tips to increase your eligibility for the next credit card, you can also learn about how to tackle the bill payments of your credit card efficiently. In this regard, you can consider taking aid of any payment app to make all credit card payments in just one click. It will, to a great extent, reduce the hassle of managing multiple credit card payments.
