Things to Look Out in a Credit Card
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There is no denying on the fact that not many people actually bother to read the fine print, before actually getting a credit card in their hands. Yes, because usually people pay attention to the lucrative offers and benefits offered by credit card companies. Moreover, it’s really important not to neglect the essential part and i.e. terms and conditions, and what actually it will cost you to afford that card.
However, if you do not want to be surprised by the figures, mentioned in your credit card statement, you should look out for the following things before you get your new credit card.
When it comes to interest rates, usually credit card companies become very creative. Yes, different banks provide you with different interest rates, depending on the card your are using. Some banks offer you low interest rates, whereas some high that also depends upon factors eligibility factors. So, before you choose one credit card, pay attention to the interest rate offered.
Next thing on which you need to pay attention is the credit limit being offered to you. Depending upon the credit limit, you can decide your monthly expenses. So, it’s important know for how much credit limit you are eligible for? Credit limit also varies from bank to bank as it depends upon the card type and various other eligibility factors. However, you can increase or decrease your credit limit, depending upon your uasge.
Many banks these days come up with credit cards, and offer users reward points on using them. Usually most of the banks or lenders provide 2 reward points, if you spend Rs. 150. That means you will get one reward on every Rs. 75 that you have spent. You can collect these reward points in your account, and can redeem them to buy any favorite product of yours. So, always remember to pay attention on reward points associated with your credit card, and redeem them within certain period to take the full benefits.
Interest Free Credit
Credit cards also provide you with the benefit of interest free credit, wherein banks usually provide you with the 50 days period to pay off all dues. During this period the banks will not charge you with any interest. Beyond this period, you need to pay the interest to the banks. So, look out for this feature before you get your credit card so that you can make the most of it.
Interest Free EMI
With credit cards also come the facility to avail the option of interest free EMI, wherein the customers can convert their purchases into free EMIs of 3,6,9 or 12 months. For example-If you buy one expensive item right after your billing, you can conveniently avail the 10 months interest free credit from the bank. Moreover, you need to be careful here as this thing us related to your substantial savings, especially when you buy some costly items after year, and can easily convert them into EMIs.
Cash back is another benefit offered by many credit card companies that you need to watch out. When you use your credit card for various services like-shopping, booking air tickets and many more, you are eligible to get cash back on your card. With the help of cash back offer, one can definitely save substantial amount.
Lucrative Offers & Huge Discounts
To grab the attention of many customers, banks now use the formula of providing lucrative offers and discounts on your regular purchase. Banks usually give you 2-5% discount on your many daily credit card payments. If you avail these offers, it will surely a benefit for you as you can save a couple of thousand every year.
With credit cards, you also have the facility of balance transfer, wherein you can easily transfer your balance to another account. If you want to minimize your expenses, transferring the balance of your credit card to another account is surely the most effective way to make that happen. Through this way you can spend less as you have limited amount on your credit card, and can invest that remaining money somewhere else. So, check with your bank, whether it offers you this facility or not?
It is also one important feature offered by credit cards companies on which you need to pay attention. In add-on credit the primary card holder can share the benefits of his card with his loved ones. An add on card is an additional card through which the primary card holder can assign one particular limit for his close relative such as spouse, siblings, parents or children to use for various purposes from his credit limit.
Whereas, in some banks you have the opportunity to share the same credit limit on supplementary card as well. However, this benefit may vary from bank to bank as different banks have different set of rules, but it is surely a great benefit to avail.
Annual Fee/Other Charges
Last, but definitely not the least, before getting a credit card, you need to consider the annual charges or hidden charges. Many credit card companies offer credit card at nominal fee or they have high fee structure, again depends upon the card type. Until and unless you are not sure or fully convinced about the charges, avoid getting that card. Confirm with your bank first, and then proceed ahead with a card.