Your credit card is your best friend to easily finance from small to large purchases and make various transactions from shopping to booking movie tickets and from making hotel reservations to paying electricity bills. You can meet your apply financial needs and have a rewarding spending experience with the right card. So, here are the most important things to consider when you apply for a credit card online.
Assess your spending habits and financial profile
It’s important to review your spending habits, credit history and credit score to choose a suitable credit card. Here are some tips:
· If you spend a lot, choose a card that rewards you the most for reaching certain milestones. For instance, the Kotak811 Credit Card offers 4 free PVR tickets or cashback of ₹750 if you spend over ₹75,000 annually.
· If you have a good credit history, a high CIBIL score and a stable income, you can qualify for a card with surcharge waivers, bonuses, maximum reward points and more.
· If you have a low CIBIL score or little to no credit history, you can opt for a credit card on a fixed deposit, where the FD acts as a collateral or security deposit. The credit limit may be up to 90% of the FD amount.
Understand why you need a credit card
Benefits offered differ from one credit card to another. So, you can apply for a credit card online based on your specific needs. Here are some suggestions:
· If you are beginning to build credit, a card with zero annual fees can be helpful.
· If you wish to get a card with a low credit score and use it to improve the score, consider a credit card against an FD.
· If you travel often, get a card with rewards on travel, airlines and hotels.
· If you own a small business, you can finance company expenses using a cashback card.
Compare interest rates
A credit card has various interest rates like APRs (Annual Percentage Rates) for purchases, balance transfers, cash advances and more. These rates differ from one card to another. If you can pay your card bill in full every month, you are likely to afford one with a high APR. in case you’re unsure, consider a card with a low APR. If you wish to use a card for big purchases and repay the credit over time, go for a 0% introductory APR credit card.
Compare all fees and penalties
Annual charges, the primary credit card fees, vary across different cards. Usually, those offering more reward programs have a higher annual fee. So, ensure that the rewards and other benefits make the fees worthwhile. For instance, a card that offers fuel waiver, cashback on achieving spending milestones and redeemable rewards for shopping and other transactions may be worth a higher fee if you find these rewards useful.
Other fees include charges on foreign transactions, cash advances, balance transfers, and late payments. Go through the card document carefully to learn about all the fees before you apply for a credit card online. The charges you incur depend on your card usage. For instance, if you don’t wish to use a credit card for balance transfers or cash advances, you can opt for one that charges extra for such services. If you travel internationally a lot, you can consider a card with zero foreign transaction fees. By paying your card bills by their due dates every month, you can avoid late payment charges.
When paying back the credit, the minimum payment you need to make to skip higher interest charges varies among cards. It is typically 5%-10% of the outstanding balance. While you can go for a credit card with a low minimum payment requirement, aim to make full payments to avoid any interest charges.
Check rewards
Before you apply for a credit card online, ensure that the rewards it offers meet your requirements. If you are a frequent shopper, traveller or movie lover or use your own vehicle, get a card with rewards on shopping, flight bookings, movie tickets and waivers on fuel expenditures.
Make Your Credit Card Bill Payments Online At AU Small Finance Bank
Look for additional benefits
See if a credit card offers any extra benefits, along with the features you need. If yes, apply for it right away.
Check all the above factors and apply for the most suitable credit card online to enjoy a seamless spending experience and skip the hassle of carrying cash everywhere.
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Disclaimer: This is a syndicated feed. The article is not edited by the FPJ editorial team.
