Credit cards have become an integral part of our financial lives. You can reap many rewards with the right credit card, including cashback, rewards points, insurance coverage, lounge access, and more. RuPay is India’s domestic card payment network backed by the National Payment Corporation of India (NPCI). It competes with other global payment networks like Visa and Mastercard.
When applying for a RuPay credit card in India, you must consider several key factors to find the right card that meets your requirements and eligibility criteria. This blog discusses those key considerations in detail.
10 Factors to Consider While Applying for a RuPay Credit Card
Reviewing certain aspects before submitting your RuPay credit card application is important.
1. Assess Your Eligibility
When applying for a RuPay credit card, it is important to review the bank’s eligibility criteria. Though specific requirements can vary across banks, some common factors may be considered:
- Minimum monthly income: ₹10,000-20,000 depending on city and bank policy
- Credit score: 650-750+ preferred
- Existing credit: Fewer loans/cards better, 2-3 optimal
- Repayment history: On-time repayments help approval odds
- First-time borrowers can also apply
While the bank will determine actual eligibility based on their internal criteria, meeting these common prerequisites can improve the chances of RuPay credit card approval. The application process will verify if an applicant satisfies the requirements.
2. Compare Cards and Features
With so many RuPay cards available from different banks, comparing the features across cards is vital to finding the best credit card that suits your lifestyle spending needs. Some of the parameters to assess are:
- Joining and annual fees
- Interest rates and charges
- Rewards and loyalty programs
- Spending categories for extra rewards
- Insurance and other benefits
Assess which card rewards match your usage based on your monthly spending patterns.
3. Evaluate Credit Limit
The credit limit on your RuPay card indicates your repayment capacity. As a rule of thumb, your total credit limit across all cards should not exceed 30-40% of your annual income.
Some banks may offer a lower limit, but you can request an increase once you build a healthy repayment track record. The higher your credit score, the better the chances of getting a higher initial credit limit on RuPay cards.
4. Check charges
RuPay cards come with different fees, including:
- Joining/annual fees
- Cash advance charges
- Late payment fees
- Over-limit charges
- Foreign transaction fees
To avoid hefty charges, read the detailed fee and charge schedule before applying for a RuPay card. Opt for cards with lower fees or waived fees upon spending milestones.
5. Assess Lifestyle Usage
Analyze your lifestyle spending patterns across categories like dining, groceries, entertainment, fuel, travel, etc. This will help identify the optimum RuPay card that offers maximum savings and rewards on those high-spend categories through additional cashback or higher reward points.
For frequent international travelers, cards with lower foreign transaction fees and international lounge access may be more suitable. A dining and entertainment rewards card makes better sense if you frequently dine out or watch movies.
6. Factor in Digital Payments
RuPay cardholders can link their credit cards to mobile wallets like Paytm, Google Pay, PhonePe, etc. Some RuPay cards offer additional cashback on digital payments, which you can utilize. If you make many online payments using apps and digital platforms, look for RuPay cards that incentivize digital payments with more rewards points or cashback.
7. Assess Insurance and Other Benefits
Most RuPay cards come bundled with add-on benefits like complimentary insurance coverage, domestic lounge access, discounts on hotel bookings, buy-one-get-one movie tickets, etc. This may not be a decisive factor if you already have insurance coverage.
Otherwise, cards with complimentary air accident coverage, lost card liability coverage, etc., provide added financial security and peace of mind.
8. Evaluate Interest Rates
Interest rates vary widely across RuPay cards. Exorbitant interest rates can become costly debt traps if you revolve credit and incur finance charges by not paying your bill fully each month.
Hence, pick cards with lower interest rates for long-term financial prudence.
9. Check Pre-approved Card Offers
Many banks offer RuPay card pre-approved offers to existing account holders. Such pre-approved cards have a much higher chance of approval than fresh applications.
Check for pre-approved RuPay card offers from your bank before applying externally to other banks.
10. Follow Through Application Process
While applying online for RuPay cards, have soft copies of KYC documents like ID/address proofs ready for immediate upload. Complete and accurately fill out the RuPay credit card application form.
Follow through the application process diligently by providing documents sought by the bank for speedy processing and approval.
Why Consider AU SPONT Credit Card?
The AU SPONT Credit Card, a RuPay-powered offering, stands out for its customer-focused features and rewards. This card provides 1% cashback on UPI transactions, making it a perfect fit for those who frequently use digital payments. Additionally, it rewards users with non-expiring coins on their spends, ensuring lasting value. The AU SPONT card also comes with lifestyle perks, including complimentary airport and railway lounge access (on meeting specific spend criteria). It combines utility, convenience, and rewards, making it an ideal choice for first-time users and experienced credit cardholders alike.
Conclusion
RuPay credit cards offer a range of benefits tailored to Indian customers. You can identify the most suitable RuPay card from available options by assessing your financial situation, spending tendencies, lifestyle requirements, and eligibility.
Comparing cards across parameters and fees enables you to pick a card that delivers maximum savings and rewards on your money. Follow the application process carefully by providing accurate information and documents sought by banks for a quick turnaround.