You have received your first pay cheque. You decide to open a savings or salaried account. Now that you have your account in place, how do you plan to use the money in it? Banks offer services such as debit or credit card for such purposes. In fact, the banks in India provide an assortment of cards that carry additional benefits like rewards, cashback, shopping miles, entertainment, etc.
After choosing a credit card of your choice, how can you go about using it? Following are some information about the credit card that you need to be aware of:
1) Interest rate: Remember, you are charged interest rate only when you carry forward your balance. If you pay off your bill all in once, you do not incur any interest. So, if you are someone who gets your credit card payment done entirely and on time, then interest rates should not matter
2) Annual fees: Some credit card carry annual, renewal or joining fees. So, opt for a card that does not have yearly charges. The annual costs sometimes waiver from bank to bank if you spend above a certain limit
3) Delayed payment: If you miss your credit card payment, banks charge heavily. They may also increase the interest rates. So, ensure to pay the bill within the specified due date, i.e. 15th or 20th of every month
4) Cash credit: By making use of your credit card to withdraw cash, can cost you heavily. They come with high-interest rates and no free credit periods. Before applying for a credit card, inquire about the cash credit details
5) Reward points: If your bank offers some reward points, do not get carried away by them. These reward points are just a small return for spending on your card. Usually, you earn 1 point for spending every INR 100
Following are some tips to remember before you choose the right credit card:
1) Know what kind of card you want concerning your requirements and benefits
2) Do not let the bank pick the card. You know what your needs are than the bank
3) Do thorough research before applying for your kind of credit card
4) When applying for a credit card via tele caller, ask the necessary information
5) Spend as per your budget. Do not exceed the credit card limit
6) Pay your bills on time to avoid high-interest charges
Banks offer credit cards that suit a person's taste. You need to recognise the perfect category that you fall under.
After choosing a credit card of your choice, how can you go about using it? Following are some information about the credit card that you need to be aware of:
1) Interest rate: Remember, you are charged interest rate only when you carry forward your balance. If you pay off your bill all in once, you do not incur any interest. So, if you are someone who gets your credit card payment done entirely and on time, then interest rates should not matter
2) Annual fees: Some credit card carry annual, renewal or joining fees. So, opt for a card that does not have yearly charges. The annual costs sometimes waiver from bank to bank if you spend above a certain limit
3) Delayed payment: If you miss your credit card payment, banks charge heavily. They may also increase the interest rates. So, ensure to pay the bill within the specified due date, i.e. 15th or 20th of every month
4) Cash credit: By making use of your credit card to withdraw cash, can cost you heavily. They come with high-interest rates and no free credit periods. Before applying for a credit card, inquire about the cash credit details
5) Reward points: If your bank offers some reward points, do not get carried away by them. These reward points are just a small return for spending on your card. Usually, you earn 1 point for spending every INR 100
Following are some tips to remember before you choose the right credit card:
1) Know what kind of card you want concerning your requirements and benefits
2) Do not let the bank pick the card. You know what your needs are than the bank
3) Do thorough research before applying for your kind of credit card
4) When applying for a credit card via tele caller, ask the necessary information
5) Spend as per your budget. Do not exceed the credit card limit
6) Pay your bills on time to avoid high-interest charges
Banks offer credit cards that suit a person's taste. You need to recognise the perfect category that you fall under.
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