It is important to get the best credit card that is ideal for your financial status. Credit cards come in handy as they can be used to make purchases without the need to save up first. They also make managing your expenses a little easier. Nowadays, many people have credit cards and they make sure that they opt for the one that is suitable for their needs.
There are a number of tips that you can follow to get the best deal with your credit card in India and they are as follows:
Be clear about your financial situation
You should consider your financial status. There are many questions that you will need to ask yourself. For instance, are you renting a house or do you live in your own house? Are you self-employed or are you still a student? You will also need to check your debt situation.
Banks & Credit card companies offer special deals to people who earn a certain amount of money. There are even a few companies that offer credit cards to people who are in a bad debt situation. Making sure that you understand your financial status is important to find the best credit card for you.
Consider the amount you can pay monthly
Many people look for a credit card that allows them to borrow more money when it should be the exact opposite. You should be clear about how much you can pay every month.
The repayment could be a fixed amount of money or a percentage of the total amount that needs to be repaid. You will have to pay the higher amount of the two. It is important that you make a rough estimate of the minimum repayment before you decide to make a big purchase.
Consider the amount you want to borrow
An important factor to consider while choosing the best credit card is the amount of money you want to borrow. Not all credit card companies offer the same amount.
There are different set amounts and the company will set them according to their policies. You can apply to the credit card company to have the limits raised. However, you will have to go through a trial period so that the company can check your repayment performance before considering increasing the amount that you borrow.
Watch out for Special offers
You will find that each credit card comes with a number of special offers. In India, the market is highly competitive so you can find the best offer or deal for a credit card that is ideal for you. Every offer will sound appealing but remember that this is not the most important thing for you to think about. Consider how the deal will benefit you in the long run.
For instance, there are credit cards that help you accumulate points that you can redeem later to make purchases. There may be many offers that do not benefit you so think wisely before you make a decision on which credit card to opt for.
Compare annual fees
You should compare the annual fees of different credit cards. While you are doing this, make sure that you understand the ways and the time that the fees will be imposed. Do you have to pay at the beginning of the year? Or is it added to all the charges at the end of the year? You should also find out if the fee can be waived with a particular number of charges. If you feel that you still want a credit card in spite of the fee, you can ask the company to waive it for the first year. As credit card companies want your business, they will surely make an exception.
If you are planning to get a credit card, you should not make any hasty decisions.
You should take your time in reading all the terms and policies of the company you are checking out. If there are doubts or questions that you have, you should call the customer care and get clarification and explanation. You should consider all the factors regarding the credit card and make a wise decision based on your financial requirements as well as the lifestyle that you live.
If your present card does not offer too many benefits, it may be wiser to move on to another company for a new credit card.
Reference Articles : Forbes
Hi, Mani Karthik here. Having lived in USA, India & Middle East, and worked for big MNC’s to startups, I have a lot to share with you. My aim is to help people, by sharing everything I’ve learned in life, through this blog. It’s read today by more than 150K people world over! I currently live in LA, California and visit India occasionally. Here’s my full story on who I am and why I blog. Connect with me on Facebook, Instagram, Twitter or WhatsApp (+001-408-489-4785). Happy to help! 🙂