Applying For Credit Card? Keep These 10 Things In Mind To Maximise Benefits
Credit Card: Nowadays The Use Of Credit Card Has Increased. More And More People Prefer To Take Credit Cards. With This, The Issuing Companies Are Also Bringing Different Types Of Cards According To Their Needs. Currently There Are Hundreds Of Types Of Cards In The Market. From These We Have To Choose The Card That Suits Us. However, Those Who Are Thinking Of Taking A Credit Card For The First Time Should Know The Challenges, Benefits And Disadvantages of it in Advance. By Choosing The Card Carefully And Using The Credit Card in The Right Way, You Can Get Profit Without Getting Stuck In The Pit Of Losses. Now Let Us Find Out The Details.
Credit Card:
Nowadays The Use Of Credit Card Has Increased. More And More People Prefer To Take Credit Cards. With This, The Issuing Companies Are Also Bringing Different Types Of Cards According To Their Needs. Currently There Are Hundreds Of Types Of Cards in The Market. From These We Have To Choose The Card That Suits Us. However, Those Who Are Thinking Of Taking A Credit Card For The First Time Should Know The Challenges, Benefits And Disadvantages of it in Advance. By Choosing The Card Carefully And Using The Credit Card In The Right Way, You Can Get Profit Without Getting Stuck in The Pit Of Losses. Now Let Us Find Out The Details.
Also Read – How To Choose A Credit Card For The First Time
What Type Of Credit Card
Currently There Are Many Types Of Cards In The Market. Reward Points Include Credit Cards, Cash Back Cards, Travel Cards, Student Cards, Co-branded Cards, Business Cards, And Store Cards. Check Out Which One Suits You Best. It Is Better To Choose Entry-level Cards With Zero Or Low Annual Fees For First-time Borrowers.
Also Read – Credit Card: Couldn’t Pay The Credit Card Bill Within The deadline?
Choose The Card According To Your Income.
Credit Card Issuing Companies Weigh A Customer’s Ability To Repay. Thus, Your Income Plays an Important Role In Choosing A Credit Card. As Your Income Increases, More Options Become Available.
Also Read – Do Not Use Credit Card At All In Such Places
Credit Card Limit
Banks Issue Cards With Some Restrictions. In This Context, You Should Choose Credit Cards According To Your Needs. The Higher The Limit, The Higher The Cost. It is Better For First-time Card Takers To Take A Card With A Low Limit.
How Much Will Be The Interest
Credit Cards Allow A Certain Amount Of Time To Repay Without Interest. If The Dues Are Paid Within This Period, There Will Be No Interest. But, It Is Good To Know In Advance How Much Interest Will Be Charged After The Due Date.
Credit Card Fees, Charges
Know The Initial And Annual Handling Charges, ATM Withdrawal Charges And Late Payment Charges. Choose The Card With The Lowest Charges As Much As Possible.
Also Read – Best Cashback Credit Cards List
When is The Payment Due?
Issuing Companies Give You A Certain Period Of Time To Repay The Money You Have Borrowed Through The Credit Card. However, it is Better To Choose Cards With Longer Expiry Dates.
Also Read – Do Not Use Credit Card At All In These Places: You Will Lose Heavily: How?
Check The Details On The Card.
After Getting The Credit Card We Have To Check if it is Of The Type Applied For. Read The Terms And Conditions Document Carefully With The Card. Check Whether The Name is Clear On The Card. Most Cards Now Come With Self PIN Generation. PIN Can Be Generated Through Online Net Banking or Bank ATM. Do Not Write The PIN On The Card.
What Precautions Should Be Taken While Using The Card?
In Shopping Malls And Hotels, We Should Be Asked To Swipe The Credit Card In Front of us. Make Sure The Phone Number is Updated With The Bank Account. As Soon As The Transaction Takes Place, The Notification Will Come. Check Your Expense Bills And Credit Card Statements. If There Is A Difference, Complai.
If The Credit Card Is Lost
If The Credit Card Is Lost, A Complaint Should Be Made To The Concerned Organization Immediately. The Card Should Be Blocked. This Can Prevent Others From Transacting Through Your Card. Some Companies Offer Insurance On Credit Cards. If The Card Is Lost Or Misused, Some Money Will Be Reimbursed. Some Banks Offer Insurance For Free
Credit Score
A Credit Card Affects Your Credit Score. Spending Beyond The Limit Can Have A Bad Effect On The Credit Score. Credit Utilization Ratio Is Very Important Here. It is Better To Ensure That This Ratio Does Not Exceed 40 Percent.
Also Read – How To Check Your CIBIL Score?
