Do You Own the Right Credit Card?

You Own the Right Credit Card

With a large number of financial institutions in the country, there are several Credit Card offerings in the market today with thousands of more features.

Hence, there are high chances that you might have jumped the gun while choosing your Credit Card without searching for the perfect fit. It’s time to re-evaluate your decision against the benchmark of what an idealCredit Card should look like. This will help you make a better decision in the future when you Apply for Credit Cards.

Here is everything you need to know for deciding if the Credit Card you own is right for you or not:

1. Consider the Effective Annual Percentage Rate (APR)

APR is the entire annual price you pay for borrowing money from the bank in the form of a loan or Credit Card. Compare the APR of every card before choosing one to determine the cheapest possible option you can get.

2. Determine the Credit Limit You Require

Settling for a credit limit that is lower than your needs will leave you in a quandary when an emergency strikes. Also,availing a credit limit that far exceeds your requirements can lead to a debt trap.

Here is how you can aim for an optimum credit limit:

  • Find out the maximum Credit Card limit you are eligible for.
  • Chart out all your needs for which you can use yourCredit Card to understand your monthly credit requirement.
  • Find a suitable equilibrium between the two and include a breathing space for emergencies.

1. Choose the Types of Rewards You Want

Credit Card rewards have turned from elite features into marketing instruments for banks today. This makes them a common occurrence in every Credit Card deal. Hence, it pays to understand how you will be using your card to take the maximum possible advantage of such deals. The types of rewards that you can choose are:

  • Cashback: Cashback rewards that pay you back a certain percentage for every purchase you make.
  • Travel Rewards:These are air miles or fuel rewards that pay you a fixed amount of points when you pass a certain threshold related to travel expenses.
  • Shopping Points:Rewards that you get for every purchase you make at partner brands.

1. Understand Related Fees and Penalties

Credit Cards are the perfect ways for banks to make some easy money from their customers. More often than not, this is done via various subtle charges like fees for transactions such as balance transfers, cash advances, request for credit increases, or making payments by phones. Not only this, you can end up losing a lot of money on penalties for paying the bill late or overshooting your credit limit.

Enquire about all one-time and recurring expenses for maintaining the Credit Card along with every possible fee or penalty.

2. Balance Transfer Needs

In case you are aiming to get a new Credit Card by transferring the balance from a card you already have, you can consider Credit Card Balance Transfer facility.

Factors that you should consider in such a scenario include:

  • The current rate of borrowing that you are paying.
  • Introductory APR offers in the new card.
  • The original rate payable after the introductory offer.
  • Balance transfer fee that needs to be paid to both the banks.

To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 70+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.

Also Read:5 Best Credit Cards for Salaried Individuals in India

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