If you think credit cards are just another payment tool, you may be wrong. Smart and disciplined credit card usage can help you enrich your lifestyle experiences.
New Delhi. Are you also thinking of getting a credit card? If yes, then you should know the essential things related to it. This will facilitate you in selecting the right credit card.
Eligibility
More than one credit card is offered by most of the banks in the country. However, you may not be eligible for all credit cards. Some cards require a high income and a very good credit score. You should always choose the card according to your eligibility. Refrain from applying for a card for which you are not eligible as your application may get rejected.
Depending on the
spend pattern, there are many cards that you are eligible for, but they may not be the right one for your needs. You should choose a card whose benefits match your spend pattern. For example, if you are planning to get a card for online shopping, then you should choose a card that gives maximum benefits for online shopping.
Budget
pattern apart from getting a card that matches your monthly budget. For example, if your monthly card spending budget is Rs 20,000, then you should choose a card that offers 10% cashback on spending up to Rs 20,000. With this, you will be able to easily save on your expenses.
Credit limit
The credit card limit is decided by the bank considering your income and credit score. Depending on your income and credit score, different banks may give you different credit limits attached to a credit card. But you should take such a card in which more limit is given. Credit bureaus look at your credit utilization ratio while calculating your credit score. This ratio is the ratio of the total credit limit used by a cardholder. Generally, credit card companies consider CUR to be above 30 per cent as an indication of debt. Therefore, increasing your credit limit can improve your credit score.
Annual fee
There is no dearth of zero annual fee credit cards in the market, but most of the basic variants are there. You should take a credit card whose annual fee does not affect your budget and the benefits associated with it are high. There are many cards in which the fee is waived for spending a certain amount in a year.
Additional Perks, Privileges and Conveniences
There are many credit cards in the market with which additional perks, privileges and facilities are associated with cashback and reward points . You should choose the card with which you get the most additional perks like complimentary travel insurance, free lounge access, joining gifts, option to avail loan against your credit card, easy EMI facilities etc.
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