headercom

Did You Know?

We serve loans, the best way you can borrow

How to Choose the Right Credit Card for Your Needs?

How to Choose the Right Credit Card for Your Needs?

Salaried millennials can conveniently meet their financial requirements using a credit card. This contemporary world embraces the use of credit cards as a lifestyle accessory. From helping you make convenient payments to increasing your chances of an instant personal loan, it can offer maximum rewards. The thought of switching your credit card comes with an objective to get better rewards.

So, are you planning to switch credit to get lower interest rates and improved terms? Now is the right time to consider a new card. And on your challenging journey to finding a suitable credit card, this post comes as a saviour solution. Let's find out how to choose the best credit card in India in this post.

Selecting the Right Credit Card – A Step-by-Step Guide

If you are here to learn how to choose a credit card for the first time, you must first know the difference between credit card and debit card. Credit cards offer access to the line of credit issued by the bank. However, debit cards deduct the money from the account holder's bank account. Credit cards provide better protection and security against fraud when compared to debit cards.

1. Assess Your CIBIL Score and Credit Report

The first step to getting your new card is assessing your CIBIL score. Also termed the Credit Information Report (CIR), it's a document that enlists your repayment and borrowing histories. This score is based on other variables affecting your fiscal position.

Notably, the CIBIL score is a benchmark for creditworthiness in a country like India. It includes your credit score and other financial transaction details. This 3-digit number can be anywhere between 300 and 900.

Undoubtedly, 900 denotes the maximum creditworthiness. On the other hand, 750 or above is ideal for instant personal loans. This score is also suitable if you want a new credit card.

Now that you are planning to choose a credit card, it's imperative to maintain a good credit score. That helps you get lower interest rates and better terms for instant personal loans.

That's where understanding the difference between good credit and bad credit becomes imperative. Good credit is the credit that one can afford to purchase things. On the other hand, bad credit is the credit that the cardholder cannot afford.

2. Understanding the Credit Card Type Based on Your Needs

India offers various credit cards based on salaried individuals' needs and preferences. They come with benefits and rewards based on applicants' spending requirements and income. An applicant can select a credit card with benefits like instant personal loans and others. Here's a rundown of the types:

Fuel Credit Cards

This card will benefit you in each fuel transaction you make. A cardholder can save on refuelling by getting cashback and other fuel surcharge waivers. You can redeem your reward points for a predetermined value. Additional rewards with these cards include entertainment benefits, wellness offers, dining, hotel booking, etc.

Travel Credit Cards

If you are a frequent flyer, you can make payments via these cards. Certain banks or credit card companies collaborate with travel and airline companies to offer travel discounts.

Using such a card helps a cardholder earn air miles or get access to airport lounges. Rewards are converted to air miles that you can use on your seat upgrades or flight ticket booking. You can also get holiday and hotel discounts, dining, and so on.

Co-Branded Credit Cards

Co-branded cards come in association with a travel aggregator, retail brand, or financial institution. It lets customers enjoy benefits like rebates and discounts from a retail partner brand.

These cards have no restrictions on usage, meaning you can spend money based on your needs. However, you shouldn't undermine setting your limits and ensure timely payments. That will improve your credit score and chances of instant personal loans.

Other types of credit cards you can find on the market include the following:

  1. Premium Credit Cards: Allows for flexible spending time, complimentary insurance, and other rewards
  2. Entertainment credit cards (for marriage loans and other purposes): Buy-1-get-1 offers on movie tickets, shows, or events, entertainment rewards on shopping, and more
  3. Prepaid Credit Cards: Use it by loading an amount of money beforehand and making payments (it's the best option for salaried individuals who find it challenging to manage debt)

3. Compare and Buy the Best One to Increase Chances of Instant Personal Loans

The last step involves comparing the best deals while choosing the credit card.

Rebates and Discounts Offered

Almost all cards offer some rebates or the other. But if you are determined to carry a balance on the card, please select one with a lower interest rate. That will save money on the interest charges.

Maximum Credit Limit

You can't guarantee future monetary challenges, but you can secure your chances earlier by assessing the maximum credit limit. If you apply for an instant personal loan later in life, your lender will see your credit score. Ensure you check the credit limit set on your card even before choosing one.

Annual Fee

The last thing you would want is to end up getting a card with a huge annual fee. A few cards are available with a yearly fee, which greatly varies from one bank to another. So, consider the annual fee and whether you can afford it.

If you are unsure about the annual charges, make a self-plan and earn rewards to balance this payment. Also, look for the repayment options for instant personal loans while choosing the card (cash, EMI, etc.).

Finally:

Typing "Which credit card is best for me with no credit" on Google isn't the only way you can evaluate the right type. Determining your financial goals is also imperative. So, before you consider the best option, ensure that you follow these steps and prepare for a secure and healthy financial future.

Recent Blogs