Due to the increasing popularity of credit cards, even payment gateway providers and food-delivery companies, in association with financial institutions, have also started to launch their own products. With the usage, the number of credit cards has also increased substantially in India.
So, applicants need to know the importance of all the features and compare credit cards in India before applying for one. If borrowers can use it efficiently, a credit card provides the best financial aid for short-term needs and emergencies. No other lending option allows borrowers to avail of interest-free credit if the dues are paid within the due date.
Individuals need to compare and choose the right credit card as per their uses and apply for one. Applicants need to consider the following aspects while applying for a credit card –
How to select the right credit card in India?
Spending habits or pattern
While looking for a credit card, individuals need to assess their spending habits and choose the right credit card in India. Depending on the expenses, credit cards can be categorized into different segments like travel, fuel, dining, groceries, shopping, and business spending.
Thus, applicants need to understand their spending patterns from their past expenses. If they tend to spend more on travel, such as air tickets or hotel bookings, they should look for a travel credit card to earn higher reward points.
Fees and interest rate
Credit cards come with various charges and interest rates. So, individuals need to compare credit cards in India before selecting one.
Most of the credit cards have annual fees and joining fees. As the name suggests, joining fee is the amount an applicant needs to pay when availing a card. And, annual fees are to be paid at the end of each year.
Furthermore, there are processing fees, late payment penalties, etc. that also come along with credit cards. Also, if cardholders are willing to carry a balance or withdraw cash, the interest rate is a crucial determiner.
Features and benefits
A credit card in India brings different features and benefits like rewards, offers, bonuses, or gifts. Rewards come in terms of cash back, rewards points, travel miles, etc. Borrowers can redeem the rewards points for lifestyle shopping vouchers, dining, retail, travel, etc. However, cashback benefits the users are offsetting their bill amounts.
Credit cards also provide lucrative offers and bonuses on shopping with their partnered brands. So, applicants must know about all available offers on cards.
On-time payment is very crucial while using a credit card. Thus, individuals should check the various options to pay credit card bills before opting for a product.
Besides the above-stated tips, applicants should opt for higher credit limits and simple eligibility criteria while comparing the available credit card options.
When applicants compare credit cards in India, they should also check the application process.
Usually, credit card companies have a simple application process –
- As a first step, after selecting the correct credit card, individuals need to check their eligibility.
- Then, along with the application form, applicants have to submit the scanned copy of all the documents.
- After verifying all the details, financial institutions approve and issue the credit card.
Credit cards like the Bajaj Finserv RBL Bank SuperCard have a simple application process as the one mentioned above.
Furthermore, this company also provides pre-approved offers that help applicants with a quick and hassle-free application procedure. Other financial products like business loans, personal loans, etc. also come with this offer. Individuals can check their pre-approved offers online after submitting their mobile numbers and names.
Lastly, credit cards not only provide financial aid but also help to build an excellent credit history if bills are paid timely. So, it is important to compare credit cards in India and then avail the right one. Borrowers also need to know how to use a credit card wisely to manage their finances effectively.