More often than not, the barrage of information about credit card offers leads to a growing confusion regarding the credit card that would be the most suitable for their customized spending needs and requirements. While all such offers seem to be lucrative on all counts, it only gets challenging for a common individual to decide the best option.
Individuals come with varying requirements while spending patterns are distinct too. Credit card reviews show that there are certain basic parameters that must be taken note of to choose the credit card, which is most suitable. It is only then that customers can maximize the benefits derived from these payment tools.
Essential Things To Keep In Mind While Choosing A Credit Card
Following are a few simple tips to get the most out of your credit card –
- Define your specific requirements
Spending patterns can be distinctly dissimilar from one individual to another. Before opting for a suitable payment tool, it is essential to gain a fair idea of why you need a credit card in the first place.
Credit card reviews show that the requirements can be diverse. It may range from seeking to build a credit history, to earning reward points and availing cash advances, among several others. If a particular card does not include those specific features that are required by the users, the latter will not stand in a position to maximize the benefits.
For instance, if you need to travel extensively for work purposes or even otherwise, a shopping credit card that comes with attractive deals on online shopping would not be of much use to you. You would then need to undertake a credit card comparison to look for a travel credit card that offers attractive deals on hotel bookings, flight bookings, and other travel-related benefits.
- Cost-benefit analysis for the card
To assess what kind of benefits that an individual is set to gain when availing a specific credit card, it is better to go through various credit card reviews on cashback, free vouchers, discounts, reward points, and other lifestyle benefits. For instance, Bajaj Finserv RBL Bank SuperCard extends welcome gifts to the tune of 20,000 reward points.
If there are higher chances that the prospective cardholder may be in need of liquidity, then the focus should be on cash advances. Such requirements differ from a case to case basis and must be compared with the cost a cardholder is required to incur in terms of annual fees and other charges.
- Annual fee waiver
You must also make a thorough credit card comparison when availing a card as many companies extend the waiver of annual fee once spending exceeds a set benchmark. If a credit card loaded with such a feature is chosen, the cardholder can capitalize on it and end up saving significantly on the annual fee.
Consideration Of Credit Score When Availing A Credit Card
The credit score is relevant both before applying for a credit card as well as in the course of its use. Credit card companies check the CIBIL score of an individual prior to approving the application. On the other hand, timely repayment of credit card dues results in an improvement in the credit score of the individual.
If the applicant has a high credit score, availing a feature-loaded credit card with a high credit limit gets easier.
Financial institutions like Bajaj Finserv also provide pre-approved offers to existing customers to facilitate simplified credit processing. The offers are available on several financial products, like personal loans, business loans, etc. You can check your pre-approved offer by simply submitting a few basic details like your name and contact number.
Effective Use Of Credit Card
Once the suitable credit card is chosen and availed, one can use a credit card wisely by adhering to a few techniques –
- Pay the outstanding dues within time.
- Keep track of transactions and alert the credit card company immediately in case of any suspicious activity.
- Try to avoid withdrawing cash against credit cards as much as possible.
- The credit utilization ratio should be kept at 30 to 50%. You must not exhaust the credit limit and ensure that the ratio is maintained.
Now that credit cards have become essential in today’s lifestyle, one must focus on these factors before choosing it. If you simply go ahead to opt for the one with a host of attractive benefits, the credit card may not meet your requirement. So, make sure to go for a cautious selection of a suitable card before applying.