Your Financial Companion: A Complete Guide to Credit Cards and How to Apply

Your Financial Companion: A Complete Guide to Credit Cards and How to Apply

What are credit cards, and how do they work?

With the use of a credit card, you can borrow money from a bank with the understanding that you must pay back the borrowed funds by the due date of your payment in order to avoid interest costs (often referred to as annual percentage rates or APR).

You can spend money using a credit card up to a pre-determined limit. Your credit card company determines the minimum, but it must be at least 1% of the balance owed, plus interest, any default fees, and the annual fee (if there is one). 

An authorized credit card issuer, Federal Bank, and Fi.Money is working together to offer a co-branded credit card. The 5% Card is now available. A credit card that offers benefits for each purchase! Also, your prizes will alter as your spending habits do each month. When you spend on any of the top 21 brands in India, you can earn accelerated rewards of up to 5X. 

If you pay the account in full, you won’t have to pay interest on the amount you borrowed unless you drew money with your credit card. One will be charged interest if they don’t pay the bill in full; this interest is often retroactive to the day you made the transaction. 

How to choose the right credit card?

There are credit cards for every requirement, from earning straightforward rewards to receiving perks for traveling. The pick of the best card will rely on the benefit you want to use it for. Thus, the initial step should be to choose your credit card-related objectives. If you are starting out with credit, your options may be somewhat limited. 

Basic credit cards are the only ones that new users can be authorized for, but you should pick the best one out of the ones that are offered. You may occasionally receive emails for credit cards that have already been pre-approved; while you can take action on these emails, you should be aware that obtaining pre-approved does not ensure you will receive the card.

  • The straightforward advice provided here might help you get started on your quest for the ideal credit card:
  1. To determine where you spend the most and least, analyze your spending.
  2. Recognize your financial tendencies.
  3. Make a list of the main perks you would like to receive after reading up on credit cards.
  4. Understand your financial situation and how much extra you can afford to pay in EMIs.
  5. Make a decision regarding whether you want to pay an annual fee for a card.
  6. Make your inquiries rather than relying on the offered offerings.
  • Visit a bank’s website
  • If you already know which bank or credit card you want, you can simply go to their website and submit an application. This is a wonderful strategy if you want to begin your credit adventure with a bank you are already familiar with. 
  • On the bank’s website, you can apply for a credit card by entering your information in the relevant section. Alternatively, you can log in to your online banking account and submit your application there.
  • The branch visit
  • If you already have a particular bank in mind, you can also apply for a credit card in person at the nearest bank branch. 
  • Make sure to include copies of all pertinent documents, including those that attest to your identification, address, and income. A successful application will require each of these. Throughout the entire application procedure, a bank person will come and help you.
  • How can you use a credit card wisely?
  • Learn about your billing cycle

Your statement will be generated for the same time period as your credit card’s billing cycle. The bill due date normally occurs 10 to 15 days after the invoice is generated. Due to this, credit cards typically offer an interest-free grace period of 45 to 50 days.

Pay your invoices promptly and in full

The first and most significant thing to keep in mind when using credit cards is paying your invoices promptly and in full. As noted, lost and late credit card payments can result in significant interest fees, quickly adding to a mountain of debt. So, make sure to always make your credit card payments in full and on time. Even though you avoid the late fee by paying only the minimal amount required, interest will still be levied.

Keep a favorable credit utilization ratio

The percentage of your debts to your entire credit limit is known as your credit usage ratio, and it should be kept low. An improved credit score would result from a smaller ratio, which is regarded as better. Your personal restrictions can be established, like 30%. As soon as you hit this cap, attempt to refrain from charging any purchases to your card until you have cleared some balances. The bank may extend an invitation for a limit increase if it determines that you are a trustworthy borrower over time. To raise your utilization ratio, you should accept the same.

Often review your statement

Tracking your credit card usage should become a habit. Go into your credit card account to view your credit limit balance as well as the costs you have already incurred. It can sometimes be more effective to review your cost list. If you detect a fraudulent transaction on your statement, check with the bank right away and report it.

Never rely on credit cards to cover expenses

Using a credit card typically involves borrowing; therefore, you shouldn’t use it for discretionary costs. And if you do, be sure just to go as high as you can afford. Pay no attention to monetary advances. Use your credit card to purchase items you cannot afford to pay for in full upfront.


The key to raising your credit score is to use credit cards properly. Keeping a reasonable utilization ratio and paying all of your bills in full will help you achieve this.

Fi.Money’s credit card includes all the extras, such as Lounge Access, a Minimal Forex Fee, Quick Credit Card Issuing, Customized Reminders, Spend Insights, and more. Oh, and the welcome package includes premium brand-specific certificates worth 5,000! Take care of your costs from the beginning and establish good credit habits, and you will succeed.


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