Your credit rating is poor. Perhaps you have a history of delinquent payments that haunts you. Perhaps you filed for bankruptcy or defaulted on a school loan during the last ten years.
All of the aforementioned factors can prevent you from receiving the Best credit cards in India, such as a VISA or Mastercard.
However, terrible credit isn’t the only reason you could be turned down for a big credit card. Some people have never used credit before. People who prefer to pay cash and have never financed a car, taken out a college loan, or taken out a mortgage may have no credit history. Most card providers will reject your application in this instance, not because you have low credit, but because you have no credit history.
Many women who marry young and undertake all of their borrowing in their husband’s name find themselves widowed or divorced with no credit rating. On this basis, tens of thousands of women have been denied loans and credit cards.
Others have far too much debt to be considered a safe bet. You are unlikely to be awarded another card if you have a car loan, a student debt, a mortgage, two or three — out cards.
You can still get a card in any of the aforementioned situations. If you know the appropriate firm to call and how to make your application, you can get a VISA or Mastercard with a limit as high as 500000, no matter how bad your credit is or if you have declared bankruptcy.
Later in this study, we’ll expose these card firms and the processes for obtaining a VISA or Mastercard, but first, let’s go over some of the other things you should know about cards, such as yearly fees, interest rates, credit reports, and more.
Your Credit Score
How do SBI card issuers determine whether you’re a good or bad credit risk? It’s a kind of a Big Brother situation. Several significant agencies in the India’s track the borrowing and purchasing habits of nearly every American who has borrowed money at some point.
When you apply for a SBI card, the card company contacts one of the agencies listed above, which retrieves your file, if one exists, and informs the firm if you have any bad debts.
Your name will not appear in any of the following databases if you have never borrowed money or used credit of any type. There will almost probably be information about you if you have. This information will be available if you have ever missed a payment or walked away from a debt. If you have never defaulted on a loan but have made numerous late payments, this is also recorded and reflects negatively on your credit score.
Freebies and perks
Offering benefits like frequent flier miles or annual reimbursements is one of those sneaky ways. Use the card frequently enough to earn a certain number of frequent flyer points. Use your card to gain credit toward an automotive purchase. Is this a reasonable price? Almost never. As you might expect, the rebates and gifts are just an enticement to pay extremely high interest rates. You’ll rarely benefit from this type of offer unless you’re a large spender who travels a lot.
Selectively
To summarise, never sign up for a SBI credit card before comparing rates. Look for bargains. Credit card firms compete much like any other type of business. That entails a large range of interest rates. Always choose a card with a rate that is 5% greater than the current prime rate.
Most card issuers entice users with extremely low interest rates, as low as 5% in some cases. However, the interest rate increases back up after six months, which is only mentioned in the fine print that few people bother to read. Many cards that start at 6 percent quickly increase to 18 percent or higher. Most people have reach a point of equilibrium and are stuck. Most folks are just unaware when their rate rises. The card firms rely on it. They enjoy people who are uninterest in specifics. If you don’t keep an eye on them, they’ll keep an eye on you — and your wallet — and steal it in the most subtle ways possible.
Read Also: Different Kinds of Credit Bureaus Available in India
