Got a new Credit Card? Here’s how you can set it up

When your much-awaited new Credit Card arrives, you look forward to start using it immediately to maximise its benefits. However, before you get going, there are certain things you need to understand about your new Credit Card. This article focuses on 5 things you need to put in place before you embark on your new Credit Card journey.

New Credit Card: 5 Steps to get started
 

Here are some things you need to do once you receive your new Credit Card:

1) Set up your Credit Card and online account
 

For a new Credit Card, you need to set up your online account, activate the Credit Card, enable a PIN, etc.

a) Setting up the online account 

You can set up a Credit Card online account by registering on the bank website or mobile app. You will need to enter/verify certain details, such as customer ID, account number, OTP, etc., to set up your online account. 

Now that you have set up your online account, you must be wondering how to activate the Credit Card.

b) Credit Card activation 

A new Credit Card has to be activated. Different banks may have different mechanisms for activating a Credit Card. Some of these include:

· Logging into internet banking or the mobile app, selecting the Credit Card and activating it

· Sending an SMS through your registered mobile number

· Calling customer care

· Doing the first transaction either online or offline

· Visiting an ATM, swiping the card and entering specific details such as registered mobile number, date of birth, OTP, etc., to complete the validation process and activation. 

Some banks will give you multiple options for activation of the new Credit Card. You may choose an option that you find convenient.

On 21 April 2022, the RBI issued the ‘Master Direction - Credit Card and Debit Card - Issuance and Conduct Directions, 2022’. As per these directions, a cardholder has to activate a new Credit Card within 30 days from the date of issuance. 

If the card is not activated within 30 days, the bank shall seek OTP-based consent from the credit cardholder to activate it. If the cardholder does not provide consent for card activation within 7 days from the date of seeking OTP-based confirmation, the bank shall close the Credit Card account.

c) Setting a PIN

You will need a 4-digit PIN to complete your offline transactions at POS machines and ATMs. Some banks send you the PIN through courier/post. Some banks will require you to generate a PIN. Just like card activation, there are multiple ways of generating the PIN. These avenues include:

· Though internet banking or the mobile app

· At an ATM

· Calling up customer care and connecting to IVRS

· Sending an SMS to a certain number with specific details

d) Transaction settings

Before you start to use the Credit Card, you can enable or disable certain transactions and limits on them. These include:

· Contactless transactions: You can choose to disable contactless transactions if you wish to.

· International transactions: If you don’t do international transactions frequently, it is recommended that you disable this option.

· Online transactions: If you want to use the Credit Card only for offline transactions, you may disable online transactions.

· ATM transactions: Some banks give you the option to disable ATM transactions on Credit Cards.

· Setting limits: You can set maximum limits on a single transaction and maximum daily limits for all transactions in a day.

Once you have activated the card, the next step is to know about the Credit Card reward structure.

2) Learn about rewards

Different Credit Cards have different reward structures. Some of the ways in which banks reward their credit cardholders include:

· Instant discounts: Using these offers, you can get an instant discount ranging from 5% to 20%. Usually, there is a minimum transaction amount and a maximum discount amount.

· Base reward points: These are given based on every Rs 50 to 200 spent. For example, the base reward rate for IDFC FIRST Classic Credit Card is 1x (1 reward point for every Rs 150 spent).

· Accelerated reward points: All IDFC FIRST Credit Cards give 3x reward points for offline spending and 6x reward points for online spending. The IDFC FIRST Classic Credit Card gives 10x reward points on incremental spends above Rs 20,000 per month and for spends done on your birthday.

3) Use your Credit Card regularly to improve your credit score
 

Having understood the reward structure, it is now time to start using the Credit Card. You can put all your regular spending on your Credit Card. It will give you benefits like instant discounts, base reward points, accelerated reward points, etc.

While using your Credit Card, you should be disciplined enough to pay your monthly bill in full and on time. Regular use of Credit Cards and timely bill payments help you build your credit score. The higher the credit score, the better it is for getting loans - that too on favourable terms. 

4) Understand your Credit Card statement
 

The Credit Card statement is a summary of how you have used the Credit Card during the billing cycle. It gives you details such as:

· Dates: It specifies the period or billing cycle (from and to date) for which you have used the Credit Card. The statement also mentions the due date, i.e., the date by which you have to make the payment.

· Amount: The section mentions the total amount and the minimum amount to be paid

· Transactions: The section gives a date-wise break-up of all the transactions done during the billing cycle. Every transaction will have details like date, description, amount, reward points, etc.

· Reward points: The section gives details of reward points like opening balance, points earned during the billing cycle, points redeemed, points lapsed, and the closing balance.

· Offers: If the bank is running any specific time-bound offers, festive offers, etc., they are mentioned in this section. 

5) Enable autopay or create a payment reminder
 

Now that you understand your Credit Card statement, paying your monthly bills is very easy. Many banks give you an auto payment option. In this case, once the monthly bill is generated, the amount is automatically debited from the linked savings account, and the bill payment is made.

Autopay ensures timely bill payment, which helps you to be disciplined and maintain or improve your credit score. If you do not opt for autopay, you will have to make manual bill payments every month. Banks usually send you SMS reminders for bill payments. You can also create a payment reminder on your laptop or mobile phone for your bill payments. Apps like CRED also send you regular reminders for bill payments.

Credit Card journey from online account setup to bill payment 
 

By now, you will have a good understanding of the entire Credit Card journey, which includes setting up an online account and card activation, learning about reward points, using the card regularly to improve your credit score, understanding the credit card statement, and finally paying monthly bills through autopay. 

So, go ahead and make the best use of your Credit Card and enjoy the rewards. If you are new to the Credit Card world and still don’t have one, you can apply for an IDFC FIRST Bank Credit Card. They are lifetime free, which means they have neither joining fees nor annual renewal fees. What’s more, they have one of the best reward systems with up to 10x reward points that never expire. The APR is dynamic, ranging from 9% to 42% per annum. 

Why not apply for a new Credit Card on the IDFC FIRST Bank website? The best part is, if you are found eligible, your card will be instantly approved!
 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.