In today’s era, credit cards are extensively used as an alternative for making payments when you are short on funds. Moreover, the ease of using a credit card for day-to-day spends merely is undebatable. Whether to book flight tickets, shopping, dining or hotel-stay, the benefits offered by credit cards are endless.
A credit card is a significant financial product provided you manage it well. However, one of the biggest challenges faced by many people is choosing the right credit card for themselves, considering the full range of choices available in the market. Some cards come with a high joining fee but with a no pre-set spending limit, while on the other hand, some cards offer no joining fee but have a cap on the credit limit. This further complicates the choice of the best credit card in India.
Moreover, with a growing demand for credit cards, banks and other financial institutions are increasing their credit card base to cater to the unique requirements of their customers. This means more cards with varying benefits in the form of offers, discounts, cashback, fee, reward points, etc. This is why one needs to play smart. Choose a credit card based on your requirements and spending pattern. Here are a few tips that can help you choose the best credit card in India and get maximum returns on it.
Chart your spending habits
The first and foremost thing to do before you apply for a credit card is to assess and chart your spending habits. A reasonable idea of your spending pattern will help you choose your ideal credit card. This is because most credit cards aim at a specific type of expense and offer higher reward points and other benefits on those particular expenses.
You may spend on shopping, dining, entertainment, travelling or paying fuel expenses. Regardless of major costs, choose a credit card that will offer you maximum benefits depending on your spending habits and lifestyle. For example, as a frequent flyer, you may want to opt for a credit card that offers perquisites like airport lounge access, air miles and complimentary hotel vouchers.
Consider fees and associated charges
Credit cards come with various types of fees and charges, which you have to pay to obtain or maintain the card. These include annual fees, joining fees, cash advance fees, late payment fees, etc. Fees and charges vary from lender to lender and depend on the card category. These paid cards also offer a host of benefits that might be useful to you. However, a few credit cards have no fee and associated costs but may lack certain benefits. Some lenders may waive off the initial joining fee while others may waive off annual charges making it a free-for-life credit card to attract the customer base. You need to analyse all available options and choose the one, which fits your requirements and benefits you the most.
Benefits and rewards
Credit cards offer a host of benefits like cash back, discounts, reward points, bonus points, air miles, introductory offers, etc. While choosing a credit card it is important to understand its benefits. Some benefits are linked with conditions such as extra points on shopping from partner retailers, bonus points on a minimum spend, etc. Hence, it is a good idea to check all the conditions correctly and make a choice. Look for a credit card whose benefits outweigh the cost of the card.
Ease of payment
Another crucial parameter to consider while choosing a credit card is the convenience to pay off your balance. Check all payment options provided by the credit card issuer. Most issuers offer you with the opportunity to pay via net banking, NEFT, cheque deposit or by linking your bank account to the credit card account for secure payment. These facilities offer excellent convenience and ease the payment process ensuring you don’t miss a timely payment. All you have to do is, check if your convenient mode of payment is available with the issuer.
Read the fine print
Most people often ignore the fine print, sign on the terms and conditions box, and check on ‘I agree’ without a second glance. It is critical to go through the terms and conditions thoroughly before making a decision. Read the clauses carefully and identify additional charges on any offer or costs if you haven’t used the card for a certain period. Reading the fine print can put you in a better position to understand your card offerings.
The next time you buy a credit card, keep these tips in mind and choose a card aligned with your purchase habits. Besides the above tips, you also need to look at the rate of interest, credit limit, free credit days, etc.
Looking for the best credit card in India?
If you are keen on getting a credit card, consider the Bajaj Finserv RBL Bank SuperCard. The card is loaded with great features and benefits such as interest-free cash withdrawal from ATM, welcome rewards, emergency loan, robust security, affordable charges, instance approval process, exciting and reward points. With a host of benefits, RBL credit card is the best credit card in the market.
To know more about the credit card requirements and documentation, visit the website.