A credit card, if used wisely, may work wonders to improve your credit score and is way more useful than your regular debit card.
There are different types of credit cards that are available in the market. Choosing the right credit card may seem challenging because of the several features and benefits offered with each.
Given below are some factors that you should consider before you opt for a credit card –
- Grace period– For every purchase you make using your card, you will be given a billing period of 30 days as well as an additional number of days to make your payment. In other words, a total of 50 days will be given to you to pay your credit card bill. For example, if you have your bill generation date at the 10th of June, you will be given a number of days more to pay the bill amount. According to your billing cycle, your next bill generation date will be 10th of July. Thus, for any purchase made after 10th of June, you will get 30 days (that is the bill generation date- 10th of July) and an additional number of days to make your payment.
- Interest rate– Before you ask your credit card provider how to apply for a credit card, inquire about the interest rates on the card. While you are paying your bill amount within the grace period, you do not have to pay any interest. But, if you fail to pay the amount within the grace period, the interest along with late-payment fees will be added on your due amount. Also, make sure you know how to read your credit card statement correctly before you make any payment.
- Reward points– For every transaction you make using your credit card; you will earn a bonus in the form of reward points. These points can be redeemed for further offers and vouchers. Reward points vary as per the type and the amount of transactions made and also according to the terms of the credit card itself. An online credit card transaction will generate more reward for online transactions rather than on offline ones. Many credit card providers offer higher reward points for online purchases. Thus, you should know how to use a credit card wisely and consider these reward points.
- Balance transfer facility– This feature helps you to transfer your outstanding unpaid balance to another credit card at a lower rate of interest. Balance transfer facility enables you to avoid debts with higher interest, thus reducing the burden on your pocket. Many credit card providers also allow online credit card balance transfer to make the process easier for the user.
- Cashback- This feature enables a cardholder to receive a certain amount of the transaction as a cashback. However, make sure to inquire which transactions (online credit card transactions or offline transactions) will fetch you more cashback.
- ATM withdrawal- Many financial institutions and NBFCs provide credit cards with an ATM withdrawal facility at a certain amount of transaction fee. Bajaj Finserv offers the Bajaj Finserv RBL Bank SuperCard which comes with 0% interest on ATM withdrawals for up to 50 days. This card comes with other benefits as well including emergency personal loan for up to 90 days, robust security features, etc.
Bajaj Finserv also provides pre-approved offers on credit cards, secured loans like home loans, unsecured loans like business loans and personal loans, as well as on numerous other financial products and services. These offers make the process to avail finances simpler, quicker and easier. You can check your pre-approved offer by providing essential details like your name and phone number.
Consider the above-mentioned factors while you avail a credit card. Before you know how to apply for a credit card, make sure you are aware of its features and benefits first. Always plan your card usage and your finances to meet the total outstanding amounts on each statement. Use your card responsibly to avail better terms and offers on it.