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Top Things to Consider while Selecting your Credit Card

Aman Khanna
 


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Most people fear that they will come under massive debt because of the high interest rates charged in credit card bill. Well, the fact is the best credit cards in the market offer features and benefits that can be worth all the expenses if managed well. Plus, customers don’t have to pay the due amount with added interest always as these come with a grace period of up to 45 days to repay.

Nevertheless, consider the following points before you apply for a credit card:

  1. Annual Percentage Rate (APR)

The Annual Percentage Rate (APR) is the rate of interest that a credit card holder has to pay with the outstanding dues. The APR differs with credit card companies, and one must compare the same before applying.

  1. Annual fees

A customer will have to pay a joining fee when he/she opts for a credit card. They may have to pay this fee annually which can also include taxes. However, some companies waive the annual fee if a customer makes a specific amount of transaction with the card.

  1. Charges and penalties

Customers have to check all the charges and penalties before they apply for a credit card. These charges may include late payment, international transactions, increasing the credit limit, etc.

  1. Credit limit

Credit limit is the maximum amount that a customer can spend with the credit card. Usually, the limit is based on the customer’s salary and CIBIL score. However, it may vary with different financial companies.

  1. Joining bonuses

The best credit card will come with several reward points as a welcome gift when a customer opts for it.

  1. Reward or loyalty points

Reward points are one of the primary benefits why individuals apply for credit card. They earn such points with every transaction; some credit cards even offer additional reward points for shopping online. Accumulated reward points can be redeemed for gift vouchers, cashbacks and discounts.

  1. Type

Financial institutions provide credit cards catering to specific lifestyles of customers. For example, frequent flyers can opt for a travel credit card which provides them with reward points and discounts when buying flight tickets. Such credit cards also come with a concierge service, complimentary lounge access, and more.

For those who invest a lot in fuel per month can avail a fuel credit card. They can get fuel surcharge waiver with such cards and also free fuel up to a specific limit.

Credit cards like the Bajaj Finserv RBL Bank SuperCard pack in several benefits for its users like:

  1. Interest-free loan for up to 90 days.

  2. Interest-free ATM withdrawal for up to 50 days.

  3. Added safety features like Zero-fraud liability cover and In-hand security.

  4. Annual savings

  5. Free movie tickets every month

You can also avail pre-approved offers on credit cards, personal loans, home loans, business loans, EMI product financing, and other financial products and services. This makes the process of availing finance less time-consuming by making it more straightforward. You can check out your pre-approved offer by providing few of your essential details online.

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