According to recent data, the total number of credit cards in circulation has doubled in the last 5 years. The rise in online payment methods with the introduction of digital India is responsible for the increase in the usage of credit cards.
Credit cards or plastic money are also accepted abroad, reducing the hassles of currency exchange. It is even more convenient than carrying liquid cash everywhere. With easy to meet eligibility criteria, it is also easy to avail a credit card.
Subsequently, credit cards are offered by most financial institutions in India. Some of these credit cards also come with additional features to suit different requirements and lifestyle of the borrowers.
Consequently, one should avail a credit card that complements his lifestyle. He or she should also consider the following points which will enable them to pick the best credit card.
Consider the following points while making credit card comparison –
- Spending habits – It is essential that you go for a credit card that suits your spending habits because transactions with your credit card have a substantial impact on your credit score. You can also use your credit card to improve your credit score.
- Rate of interest – Credit cards charge a substantially expensive rate of interest if the bill payment is made after the grace period. Avail a credit card that charges a low-interest rate if in any case, one fails to make a payment.
- Additional charges – With some credit cards, one has to pay joining fees, annual renewal charges, and so on. Accordingly, before opting for a credit card, make sure that these additional charges are as minimal as possible.
- Extra benefits – While carrying out credit card Comparison, consider the features and benefits that are being offered. Go for the one that comes with attractive reward points and welcome bonuses.
You can avail credit cards that offer attractive reward points on purchases. These reward points can be redeemed while shopping at partner stores to avail discounts or gift vouchers. One can also avail waivers on fuel by paying with a credit card. With Bajaj Finserv RBL Bank SuperCard, one can avail cash from ATM with zero interest charged for 50 days.
- Protection against fraud – A considerable number of users carry out online credit card transactions. It has led to a rise in fraudulent online activities. Just is why it is crucial to select a credit card that offers protection against such fraudulent activities.
- Fast approval process – Avail credit cards from financial institutions that offer instant approval for credit cards to individuals. In some cases, you can even apply online for a credit card. Applicants have to put in the required information and submit the necessary documents to avail of their credit card.
- Pre-approved offers – Financial institutions such as Bajaj Finserv bring pre-approved offers that make the process of availing credit cards quick and hassle-free. Apart from credit cards, one can avail of such offers on home loans, business loans, personal loans, etc. You can check your pre-approved offer by providing some essential details like your name and contact number.
Nevertheless, it is essential to monitor one’s credit card usage to enjoy the above-mentioned benefits. Accordingly, an individual should limit their credit card expenses to within 60% of their credit limit. It will not only help them to repay on time but also have a positive impact on their credit score. Apart from that, cardholders should go through their credit card statement to know more about reward points that can be redeemed.
Credit card comparison is, therefore, crucial so that you can choose the right credit card for yourself that will also suit your lifestyle. It will make your life easier since you will be able to save a substantial amount of money when you make financial transactions with a credit card.