What are the factors that determine the best credit card in India?

The concept of having convenient access to a large sum of funds can often terrify a person or even overwhelm them with self-indulgence. A credit card, for that matter, is the perfect tool that allows individuals to purchase products of large sums on borrowed funds from the bank or financial lender. However, at the same time, the credit card user will also need to repay back the borrowed funds, albeit with an added interest after a particular period.

However, with the right financial responsibility and the ideal credit card, you will be able to make financial expenditures that are financially viable to you. While the financial responsibility lies on your habits and decisions, choosing the right credit card needs careful consideration, especially with all the credit card factors offered by the lender. Here are some of the important factors you should take into consideration when choosing the best credit card in India:

Interest rate:

If not the most important, is the most imperative factor that needs to be taken into account when opting for a credit card. This interest rate, also known as the annual percentage rate in the terms of credit cards, is the rate of interest charged to the credit card on an annual basis. This charge is calculated on a part or full portion of the unpaid balance. Before applying for a credit card, always check the interest rate offers along with the possibility of hidden costing.

Credit card limit

The credit card limit on a card determines the maximum amount the lender will let you borrow on a single card. This limit is decided based on your income, assets, and current credit score. When applying for this credit card, you must ensure that your limit isn’t too high, as exceeding the limit can incur a penalty for extra expenditures.

Fees and penalties

A credit card comes with a variety of fees and penalties, which differ on the lender. Some of the fees that are included with a standard credit card include annual fees, joining fees and late payment amongst many others. You should also be aware of hidden fees, by diligently going through the credit card terms before applying for it.

Incentives and rewards

Apart from other factors of a credit card to consider, rewards and incentives are two factors you can look forward to. The best credit card in India do come with plenty of these programs, but it depends on the lender that is providing you with the credit card. The best way to make the most of these incentives and rewards is to opt for a credit card that matches your lifestyle. You can even ask your lender for an upgrade after a certain period.

Get full funding with the best car loans in India

Plenty of individuals dream of owning a car. However, with the possibility of increasing and additional expenses makes it difficult purchase a car. But the availability of a loan, such as a car loan, will make this purchase easy.

But like any other loan, there is a considerable difference it the loan amount you will apply for, and the loan amount you will get. With the right financial profile, you can get at most 80 to 90% of the value of the car, as the loan amount. You can even get 100% if you only take the right measures.

Here is what you need to do to get a full funding for your car loan:

Get the optimum credit score

Like any other loan application, your credit score will play an important role in determining your eligibility and loan amount. This credit score is a valid proof of your financial stability as well as your financial history. A good credit score of over 650 will get you an affordable loan. However, a credit score of more than 750 gives you a higher chance of getting a full funding for your car purchase. Since most cars have a value of more than ten lakhs, a full funding by a financial institute may be a risky investment.

Therefore, these financial institutes would opt for a credit score that is nearly perfect, in order to reduce the risk of the loan applicant, from defaulting on the loan. In order to get the best credit score, you can start planning for it, as soon as you start earning. Taking credit or debit cards with small limits will help build your credit score over time, to near perfection. Alternatively, you can take measures to eradicate errors from your credit score, which in turn can affect you loan application.

Approach the right institute

Apart from the credit score, the right institute will also provide you with the best loan options. For a car loan, you can always approach a bank, financial institute or even a dealership for the best loan. You will need to check their individual requirements and offerings. Do enquire about the requirement for a full funding if possible. As most institutes or dealerships will find a full funding as a risky investment, there will be plenty of criteria you will need to satisfy. Having a previous relationship with the institute will help you get a better chance of a good loan. Additionally, if you are opting for a car model that is considered a low risk by the institutes themselves, then you will have a higher chance of a good loan deal.

Personal finances

Your own finances will play an important role when it comes to this kind of car loan. In order to suffice a full funding, you need to have the required financial income to support it. This would include a steady and high income.

Are you aware of these factors before applying for a personal loan?

When it comes to the different loans available in the market, the personal loan has been a popular option for plenty. Not only does it offer a financial variability, but it also requires a short loan processing tenure, making it the most accessible loan. However, at the same time, you will need to expect certain disadvantages to this loan. Some of the drawbacks of this loan include high-interest rates and short tenures. Apart from these features, there are plenty more you will need to consider. Given below are a few important factors you will need to consider when it comes to applying for a personal loan.

Shopping for better rates is essential

Shopping around for different personal loan rates may seem like a tedious job. However, it is crucial that you take such a step as it not only offers you a wider opportunity to get the best of rates but also the leverage to negotiate for better rates. Additionally, if you apply for these loans only to check for the rates, it can affect your CIBIL score, which in turn can affect your credit score. To get an overall view of your loan and how it can affect you, you can always use the personal loan EMI calculator for better clarity.

Consider your needs over eligibility

You must focus on your financial needs over your eligibility. If you need a fixed amount to satisfy your financial requirements, apply for a loan of that same fixed amount. Plenty of times, banks, and financial institutes can review your eligibility and offer you loan rates that are higher that what you need. While this extra financial aid will provide you with the convenience of funds, you will still need to repay the borrowed funds, the interest calculated on the principal amount as well as the additional charges. A personal loan EMI calculator will provide you with the calculated results of the different loan amount, as is the best tool that you can use to check whether you can afford the loan or not. After all, a personal loan may be the most convenient loan, but it is still the most expensive form of debt.

Ensure that you can afford the EMIs

While you may be able to afford the overall loan with the added interest and the additional charges, at the same time, you need to manage the EMI’s to repay this borrowed amount. You must be honest with yourself, after all, only you would be aware of your repayment capability better than anybody else. Use the personal loan EMI calculator, to calculate the different rates required to afford the EMI of your loan. If you can adjust the loan tenure or the interest rate to suit your needs, go for it.

Why should you use your credit card for online transactions?

Banking cards are a great convenience in today’s day and age. One of the main benefits of these cards is that it can be used for cash payments as well as cashless ones. However, amongst the different banking cards, the credit card has proven to be the most favorable one. It is used as a vehicle for both online as well as offline transactions, making it one of the most convenient tool. Here are different reasons as to why this makes a noteworthy tool for your online transactions today:

Get cash back and rewards for every transaction:

One of the main features of the credit card is usage of borrowed funds. Most credit cards provide you with a fixed days of not more than 45 days to pay of any incurred expenses. However, while you may use the borrowed funds to make a purchase, at the same time you ca get cash back offers on selected purchased items. These offers allow you to make purchases on a wholesaler’s price, which is the best solution for those who want to safe funds. At the same time, your card will also allow you to earn credit points, which can be later redeemed for other items for free.

Online purchases, payments and fund transfers:
Plenty of e – commerce websites have been coming up over the last few years, providing you with several opportunities to shop online for clothes, travel trips, accessories and other similar products. By using this card, you can purchase these items, especially if there is a great deal on offer. You can even use your card to pay bills, without requiring you to leave your home or workplace. With such online payment methods, you bills will be paid in mere minutes rather than in hours as it would take through the traditional route. You can even use your credit card to fund transferred from one location to another. You can even use this form of transfer for local transfers or international transfers.

Opt for customized cards:

Financial habits often reflect the financial needs of the individual. Therefore, not all generic credit cards will suit your financial needs completely. This is when you can apply for credit cards that are customized to suit your needs financially. These cards offer better rewards and discounts. Based on your income, your spending habits and your current debt, you can easily apply for any credit card that will suit your needs to perfection.

This form of plastic money has made all our lives considerably simple. Additionally, using the automated ECS transfers, you can simplify it much more. Through this card, you can avail numerous banking services, without visiting any financial institute.

Are you aware of this personal loan trick?

During some point in your life, you will face a situation, where you may require finances. In such a case, you can opt for a loan. A personal loan is designed to provide you with several benefits, especially since it can be used for multiple purposes. You only need to submit the right documents while also ensuring that you satisfy the required eligibility factors. However, at the same time, you must be aware of the different factors that can affect your loan. To assist you in getting the best loan, you must be aware of these tricks:

Credit history plays an important role

The credit history compiles of the record of an individual’s financial history. Through this credit report, an applicant’s financial past can be reviewed, especially if there are any late payments or current debts. This history is held in the form of a score, which the banking institute refers to, when considering your eligibility for the loan. You can also get an insight to how much of a loan you can expect by using the personal loan calculator to your advantage.

EMI calculator

In order to get the best personal loan, you will first need to research on the market. Plenty of institutes offer a variety of different loan packages, each designed to suit the financial requirements of different audiences. However, when opting for any of these loans, you need to consider the different variants pertaining to the loan. They include the repayment tenure, interest rate and the principle amount amongst many others. But while these factors can chance according to the market conditions, tools such as the personal loan EMI calculator will help assist you make a decision.

Employment

Your employment plays an important role when it comes to taking a loan, especially when it comes to the personal loan. As this loan is an unsecured loan, there is no requirement to provide collateral. However, to compensate for this financial risk, loan providers often provide a high-interest rate. Your income determines how well you can manage the overall loan, especially if you need to pay a high EMI. Additionally, there is a considerable difference between the loans provided to employees as compared to self – employees. In addition to this, your job profile also plays an important role. Government employees are more likely to get a better loan deal as compared to other applicants.

Apart from these factors, there are plenty more you can refer to. However, it is crucial that the loan you opt for and the loan features satisfy your financial needs before you proceed with the application.

What are the main reasons that can change your EMI during the loan tenure?

A loan is a great way to satisfy all your financial requirements, especially if you require a large amount on short notice. While the loan application process has now been made easy, there are certain factors you still need to consider. For one, the EMI of the loan needs to be considered.

Equated monthly installments, known as EMI, determines the amount you will need to pay on a monthly basis in order to repay back the borrowed funds, along with the added interest. By using the EMI calculator, you can calculate the ideal amount that suits your needs while allowing you the flexibility to repay back the loan. However, at times, this EMI amount can also change during the tenure of the loan, which can affect your repayment process. But in order to be prepared for such a situation, you must understand the reason as to why this can occur. Given below are a few reasons as to why your EMI can change during your loan tenure:

Interest rate on your loan changes

Different loans come with different interest features. Loans such as the home loan come with an option of floating rate and fixed rate. While the floating rate depends on the current financial market conditions, fixed rates depend on the market condition at the time you are applying for the loan. Therefore, if you opt for a floating interest rate, the rate will be reset, depending on the lender you have approached for the loan. When this change occurs, it will also affect your EMI’s. By using the EMI calculator, you can calculate the possibility of each change that can occur for your interest rate. At the same time, you instruct your lender to adjust your loan tenure as opposed to your EMI in order to compensate for the modification.

Prepaying the loan

Plenty of lenders offer the feature to prepay a loan well before its loan tenure. However, EMI’s are calculated based on the principal amount, interest rate, and the loan tenure. In this case, the principal amount will be lowered, whereas the interest calculated on the new principal amount will change. In other words, prepaying your loan will change the loan tenure, which in turn will change the EMI’s. However, at the same time, you may need to pay a prepayment penalty, which can depend on the amount you pay prepay. To avoid such a situation, you must use the EMI Calculator and calculate the ideal amount that will prevent this situation.

You opt for progressive EMI’s

Some lenders offer the benefit of repaying a loan through staggered EMI’s. Through this process, you can opt for a fixed EMI for a particular tenure. After the term has passed, you will need to pay larger EMIs. This is an ideal option for individuals who have just started to work and are unable to afford large EMIs until they grow in their profession.

What are the main reasons that can change your EMI during the loan tenure?

A loan is a great way to satisfy all your financial requirements, especially if you require a large amount on short notice. While the loan application process has now been made easy, there are certain factors you still need to consider. For one, the EMI of the loan needs to be considered.

Equated monthly installments, known as EMI, determines the amount you will need to pay on a monthly basis in order to repay back the borrowed funds, along with the added interest. By using the EMI calculator, you can calculate the ideal amount that suits your needs while allowing you the flexibility to repay back the loan. However, at times, this EMI amount can also change during the tenure of the loan, which can affect your repayment process. But in order to be prepared for such a situation, you must understand the reason as to why this can occur. Given below are a few reasons as to why your EMI can change during your loan tenure:

Interest rate on your loan changes

Different loans come with different interest features. Loans such as the home loan come with an option of floating rate and fixed rate. While the floating rate depends on the current financial market conditions, fixed rates depend on the market condition at the time you are applying for the loan. Therefore, if you opt for a floating interest rate, the rate will be reset, depending on the lender you have approached for the loan. When this change occurs, it will also affect your EMI’s. By using the EMI calculator, you can calculate the possibility of each change that can occur for your interest rate. At the same time, you instruct your lender to adjust your loan tenure as opposed to your EMI in order to compensate for the modification.

Prepaying the loan

Plenty of lenders offer the feature to prepay a loan well before its loan tenure. However, EMI’s are calculated based on the principal amount, interest rate, and the loan tenure. In this case, the principal amount will be lowered, whereas the interest calculated on the new principal amount will change. In other words, prepaying your loan will change the loan tenure, which in turn will change the EMI’s. However, at the same time, you may need to pay a prepayment penalty, which can depend on the amount you pay prepay. To avoid such a situation, you must use the EMI Calculator and calculate the ideal amount that will prevent this situation.

You opt for progressive EMI’s

Some lenders offer the benefit of repaying a loan through staggered EMI’s. Through this process, you can opt for a fixed EMI for a particular tenure. After the term has passed, you will need to pay larger EMIs. This is an ideal option for individuals who have just started to work and are unable to afford large EMIs until they grow in their profession.