Credit cards are attractive because they allow credit transactions and also reward you on every purchase. Moreover, there are a lot of additional privileges and benefits which you can get with a credit card which is why most of you want to own a credit card. If you already have a credit card then you know about how to get the best card. However, if you are looking to avail your first credit card, here are some useful tips for you so that you get the best card and know what to expect from it.
Understand your spending pattern to choose the right type of card
Understand your spending pattern to choose the right type of cardThere are different types of credit cards which are available in the market – lifestyle card, premium card, shopping card, fuel card, travel card, co-branded card, etc. Each card’s reward program is designed based on the type of card it is. This means that travel cards would have maximum travel related rewards while shopping cards would give you shopping based rewards and privileges. So, you should, first, identify your spending pattern. Determine the type of spending that you mostly do so that you can find which type of credit card would be best suitable for you.
Compare different cards before choosing one
After you know the type of card that you need, find out the various cards available in the market in the selected category. Banks and financial institutions offer hundreds of credit cards and to get the best card comparison is necessary. Compare the credit cards offered by different financial institutions in terms of their rewards program, interest charges, joining and annual fees as well as other associated charges and benefits. Then choose a card which promises the maximum benefits and privileges and also has low interest rates and other charges.
Understand how the credit card works
Just availing a credit card is not enough unless you know how the card works. Though you know that you can shop using the card, there are some technical concepts which you should clearly understand. Know when is your billing cycle, the payment due date, the minimum amount due level, interest free credit period and the late payment charges associated with the card. Moreover, study the reward program in details so that you can reap the maximum benefits out of the card.
Check your credit score and fix it if it is bad
Credit cards are allowed if you have a good credit score which is 650 or above. So, before applying for any credit card, check what your credit score is. You can check the score easily online and that too free of cost. If the credit score is bad or below the required minimum level, try and improve the score before applying for the credit card so that your application is not consequently rejected.
Check the eligibility criteria
Credit cards also have specified eligibility criteria and if you meet such criteria can you avail the card. So, before applying for the card check whether you fit the eligibility parameters of the card issuer.
If you follow these tips you would be able to get your first credit card easily and quickly.
SEE ALSO: 5 Things to Know About Preapproved Credit Card Offers
Credit Card is a payment card issued to an individual (Cardholder) by the banks and NBFCs With this credit card, you can make purchases on credit, up to a predefined credit limit. It actually comes as a plastic card which is swiped on point of sale terminals placed at the merchant place. It is the flexible alternative to the cash payment and eliminates the risk of carrying a large amount of cash if in any situation.
Credit cards come with different features and benefits. The most popular credit card offers include cash-back credit cards, women credit cards, business credit card, entertainment credit cards, and low-interest credit cards, among others.