How to Choose the Right Credit Card for You in 4 Easy Steps?
Finance 297

How to Choose the Right Credit Card for You in 4 Easy Steps?

How to Choose the Right Credit Card for You in 4 Easy Steps?

It is often observed that when someone applies for credit card and avails one, they tend use it for a long duration. Recent surveys have revealed that about 20 million consumers have never changed the card they use and another 25 million continued using it for more than 5 years.

There are well-defined options to change the credit card one owns and this offers ample reason to change it often. Still, the difficulty arises when the card is stored on online accounts, and an auto-pay option has been set up to use the card. So, this bears enough reasons why a card should be chosen wisely, as you might end up having a long term relationship with the credit card issuer.

Here is a 4-step guide to help you find the best credit card in India.

Determine the usage of the card

You must zero in on the sole purpose you want to utilise the card for. Thus, you will be able to chalk out the correct approach and will surely get hold of the credit card to suit your requirement the best. If it is just about meeting overall expenditure, then go for a card offering generous rewards and the lowest rate of interest. If the requirement is far higher as consolidating the existing debts or for business purpose, then you need to be more efficient in your research. You will surely find the right option as there are various choices of credit cards tailored to your specific needs.

Decide whether you want to carry your balance forward

If you wish to take your balance forward, then a low rate of interest will always come up as a surprise element over the reward programs and the sign-up bonuses. Typically in case of credit cards, the interest rates top at 15 per cent per year, and you usually earn 1-2 per cent in rewards for most of the purchases made.

Thus, it gives enough reasons why it is a better option to prioritise the payment of interest. If you have availed a credit card providing 0% annual percentage rate (APR) as a promotional offer on purchases then you can afford to continue with the finances. In case you repay the borrowed amount before the expiry of the promotional rate, or transfer the balance, you won’t have to pay the interest.

Understanding your spending traits

If you do not wish to carry your balance, then the better option for you would be maximising the rewards by smartly using the card. To do so, you must choose the right credit card that can match up to your spending habits. Some cards offer bonus rewards on purchases such as groceries, gas, restaurant bills, hotel accommodation, airline tickets, etc. Understanding your financial requirements comes first followed by forecasting where you will need the finances.

Find out the rewards to suit your requirements

Choose a credit card according to its reward offers or program. For instance, if you are earning free airlines miles without the need for them, you may have chosen the wrong card. On the other hand, if you will avail a credit card offering cash backs on dining and accommodation deposited in your bank account, then it will provide you with a welcome option to have some savings. Credit cards offering points to be redeemed against fuel for your vehicle is also a useful choice.

Several noteworthy financial institutions have come up with offers of credit cards bearing umpteen extra features. The Bajaj Finserv RBL Bank SuperCard is one such credit card offered by the reputed NBFCs such as Bajaj Finserv. It comes with various advantages including ATM withdrawals, secure EMI options, seamless EMI financing, and so on.

Bajaj Finserv also brings in pre-approved offers for credit cards as well as on home loans, business loans, business loans, personal loans, and a range of financial products. These offers simplify the process of financing and help you to save on time. It is all about submitting some necessary details to check your pre-approved offer.

So, as you will apply for credit card and finally have it in hand, do not assume that it is the single card you need to use forever. Just keep the above pointers in mind and have an understanding of whether the card is aligned to your spending well or not and is offering the rewards you need now. Opt for the best credit card in India according to your financial requirements.

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