To avail maximum benefits from a credit card, make sure that you choose one that offers rewards that add value to your life. Consider your spending patterns and look beyond the common offers that issuers provide, such as free movie tickets or no maintenance charges for the first year.
Instead, pick a credit card that gives you rewards year-on-year. For instance, when you choose the Bajaj Finserv RBL Bank SuperCard, you get interest-free cash withdrawal for up to 50 days from ATMs, the option to shop on No Cost EMIs, zero-interest emergency loan for up to 90 days once every year, robust security and affordable charges.
To ensure you get an equally good deal, take a look at 5 essential tips that you must keep in mind when selecting a credit card.
1] Check the rewards and see how they fit your lifestyle
Before selecting a credit card, analyse your spending habits and plan how you will use the card. For instance, if you are a stylist and for professional reasons you have to always be dressed well and need to shop frequently, you can swipe your credit card to do so and pay credit card bill online when you receive payments for your work.
In this case a credit card that offers shopping benefits such as cashbacks, discounts, or extra credit card reward points is ideal for you.
2] Look into the interest rate
When you opt for a credit card, the first thing you should look at is the interest rate. The interest rate an issuer charges can either be a flat or a flexible rate.
In case of flat rate, the rate will be constant and will only change under certain circumstances like a change in credit card rules, when you delay your payment beyond 60 days, or after the end of the promotional period when you got the card.
On the other hand, a flexible interest rate will fluctuate every month. Nevertheless, if you always pay your credit card bill in full, the interest rate does not come into play. But since you can’t predict the future, play it safe and take into account what the interest rate is.
3] Examine the credit limit offered
Once you have shortlisted a card based on rewards that add value to your life, check the credit limit. While a high credit limit will help you meet all your needs with ease, it may also tempt you to swipe more.
On the other hand, a low credit limit may mean you end up utilising it fully. This can adversely affect your credit score. So, aim to achieve a balance between the two options.
4] Evaluate the fees and penalties
Common charges issuers levy on your credit card are fees for balance transfer and for cash advances, penalties for delayed payments and for over-utilising the credit limit, and annual fees. So, you should look for a card that not only charges you lower interest, but also levies reasonable fees and penalties for a rewarding experience.
5] Understand the balance computation method
In case you plan to carry forward a part of your credit card bill due to the next billing cycle, it is important for you to know how the interest and penalty are calculated. This is because these charges show up in your total amount due and can be confusing to decipher.
The billing cycle differs across issuers and to calculate the interest, the most common method used is average daily balance. Under this method, the daily balances are added up together and divided by the number of days in the billing cycle. Then it is multiplied by the monthly interest rate to arrive at the total interest due.
Consider these handy tips when selecting a credit card to get a true winner. If your goal is to accumulate the most credit card reward points, apply for the Bajaj Finserv RBL Bank SuperCard.
With this credit card you can not only get up to 20,000 welcome reward points, but also earn points on every transaction. To apply, you only have to conform to easy eligibility criteria and check your pre-approved offer to get your credit card application approved instantly!