The millennial generation is one of the fastest-growing segments of credit card users in India. From making a big purchase to boosting the purchasing power, a credit card can be a powerful tool in times of cash crunch. However, if you avail a credit card before entirely knowing about them, it can affect you negatively.
What are the things you should look before Applying for Credit Card:
It is crucial to get the best credit card and use it cautiously to save your time and money.
- Choosing the best card for you: If you are a first-timer, you must opt for a credit card wisely while there won’t be many options available to you as you have a nil or deficient credit secure. You can thus choose a secured credit card or any credit card which can help you to build your creditworthiness. However, you must remember that the first card can either build or ruin your creditworthiness, so make timely Credit Card Payments. Also, choosing the credit card that suits your financial need is crucial. These are different types of credit cards that can be considered by the first-timers.
- Credit cards for students
- Pre-approved credit cards
- Secured credit cards
- Credit cards with fair credit score
- Latest offers of credit cards: One of the most attractive things about a credit card is that it provides a lot of offers and rewards on purchase of specific benefits and on leisure activities such as moving, going for dining etc. It is essential to keep an eye on these offers provided on different credit cards.
- Different rates charged on a credit card: One of the essential things that you must look at before choosing a credit card is the rates and charges of different cards. You must check penalty fees, annual percentage rates, annual fees, rates for transactions outside the country and compare rates of different credit cards to reduce the cost of the credit cards.
- Interest-free period: If you have a good credit score, then banks also provide an interest-free period for the credit cards. This reduces the costs of having a credit card. You must thus look for interest -free period of the credit cards.
- Customer service: The efficiency of customer service is another factor that you must consider when taking a credit card. Most of the credit card companies provide customer service through telephone and mail and the website. There is a lack of human touch available to look after your queries. Also, make sure they have a customer-friendly site.
- Credit limit: You must also check the credit limits of the credit card provided by different institutions. While people who have a good credit history may get access to credit cards with a higher credit limit and people with no credit history may have to procure secured credit limits in which limit of credit is dependent on the amount deposited by you. However, you must keep the credit utilisation ratio balanced so that you can maintain a good credit score.
Thus, you must compare all these factors before taking a credit card at the best rates according to your financial need. Having a piece of complete knowledge about how these credit cards work can save yourself from credit card frauds. Also, choosing the best credit card can help you maintain a credit score and improve your creditworthiness.
Why you should compare different cards before applying one
The millennial generation is one of the fastest-growing segments of credit card users in India. From making a big purchase to boosting the purchasing power, a credit card can be a powerful tool in times of cash crunch. However, if you avail a credit card before entirely knowing about them, it can affect you negatively.