Credit cards are payment instruments that come with a usage responsibility. While they come with the potential to build a credit profile, its unplanned usage can also damage the pattern and personal finances. Thus, individuals should also carefully pick up a credit card with right and useful features. However, users should understand the process of how to get a credit card well before applying.
As a starter, one should opt for card issuers that can offer these credit instruments with essential qualifying criteria and easy documentation process. Individuals should also carry an excellent credit score above 750 to avail of a card with attractive features.
Following are some aspects to be taken under consideration while choosing which credit card is right for me –
Decide the Purpose of Obtaining the Card
Individuals should start by identifying the primary objective of availing the card. This assessment helps to pick which credit card is right for me to meet regular expenses efficiently. For example, if the main reason is general spending, individuals should consider cards that come with reward programs for daily transactions.
Nonetheless, if the purpose involves business transactions, debt consolidation, or any specific purchases, a user should compare multiple features before applying for one.
Observe your Spending Habit
Looking at the spending pattern is also essential to maximize the incentive benefits that accompany it. Users should thus look for a card that can match their spending habits. Credit cards offer bonus reward points, cash backs, discounts, vouchers, coupons, etc. for specific transactions.
These expenses may include groceries, travel purchases, dining, entertainment, gas or fuel purchase, business spending, etc. For example, individuals who are likely to spend frequently on restaurant bills should go for credit cards that offer rewards points for dining.
Check the Credit Limit
The credit limit signifies the maximum amount that a borrower can spend through the card within a billing cycle. One should always check for credit cards whose limit matches their repayment capacity. Moreover, expenses on cards can also affect an individual’s credit profile significantly.
Thus Cardholders are always advised to maintain a good credit utilization ratio that measures the total spending as a percentage of the credit limit available. For a positive impact on the credit history, it is ideal for maintaining the ratio under 30%. It also helps avail the best card.
Individuals should pay attention to this component mindfully while acknowledging which credit card is right for me.
Consider Competitive Interest Rates
Even though repaying the entire monthly bill before the due date does not accrue any interest, it can be beneficial to obtain a credit card with affordable interest rates. As, if borrowers have to carry a balance during adverse financial scenarios or miss bill payment, a low-interest rate should accumulate substantially less outstanding.
Look for Cards with Useful Reward Programs
While considering reward programs, borrowers should check the usefulness of it. For instance, hotel bookings or online shopping with some cards can earn you accelerated reward points, discounts, or cash backs. Therefore, applicants should sign up for credit cards with useful reward programs as per their expenditure requirements.
Pay Attention to all the Terms, Fees and Penalties
A credit card also comes with several vital norms and charges. So, users need to check across all these underlined aspects minutely. Some universal standards include the minimum amount due, the total amount due, grace period, etc.It is responsibility of the user to chick which credit card is best for me.
Also, borrowers should look for lenders that can waive off the annual fee or charge a comparatively lesser processing fee, late payment charges, transaction fees, credit card cash advance fees, etc.
Some cards come with more generous rewards on specific purchases. For example, applicants can opt for cards like the Bajaj Finserv RBL Bank SuperCard that brings excellent reward programs alongside an extended grace period and secure bill payment options. To maximize their utility, individuals should also know all about the SuperCard.
Also, this card issuer provides pre-approved offers to simplify the process of financing and help save time. These offers are also available on other financial products like business loans and personal loans.
As for card usage, individuals should use a credit card wisely as the financial tool provides funding but also helps to improve credit history. So, as one should know how to get a credit card, they should even understand how to use it properly.