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Things to Look Out in a Credit Card

There is no denying that most people don’t read the fine print before getting a credit card. Yes, most pay attention to the lucrative offers and benefits offered by credit card companies only. But it’s important not to neglect the essential part and i.e. terms and conditions, and how much it will cost you.

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.

Interest Rates

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. The setting of interest rates also depends upon various factors. So, before you choose one credit card, pay attention to the interest rate offered.

Credit Limit

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 to know 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.

Reward Points

Many banks offer users reward points on credit card shopping at both online and offline stores. Usually, most 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, pay attention on reward points associated with your credit card and redeem them within certain period to take the full benefits.

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Interest Free Credit

Credit cards also provide you with the benefit of interest free credit, wherein banks usually provide you a 50-day period to pay off the dues. During this period, 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 getting a credit card.

Interest Free EMI

With credit cards also come the facility of interest free EMI option, 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 a 10-month interest-free credit from the bank. Moreover, you need to be careful here as this thing is related to your substantial savings, especially when you buy some costly items after year, and can easily convert them into EMIs.

Cash Back

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 provide lucrative offers and discounts on their regular purchases. Banks usually give you a 2-5% discount on your many daily credit card payments. If you avail these offers, it will help you can save immensely.

Balance Transfer

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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?

Add-on Credit

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 can share the same credit limit on supplementary card as well. However, this benefit may vary from bank to bank, but it is surely a great benefit to avail.

Annual Fee/Other Charges

Last, but definitely not the least, before getting a credit card, consider the annual charges or hidden costs. Many credit card companies offer credit card at a nominal fee or they have a high fee structure, depending upon the card type. Unless you are not sure or fully convinced about the charges, avoid getting that card. Confirm with your bank first and then decide what to do.

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