This new year, avail the right credit card to extend your financial capability. Credits cards offer a pre-specified amount of credit extended by the credit card issuer to the user for purchases and transactions online or offline. This financial product effectively increases an individual’s purchasing power and is popularly available nowadays. According to the studies of 2019, the total number of credit card holders stands at around 50 million.
This instant payment tool comes with various borrower-centric features, and they do vary between different financial institutions. An individual should check for the features they can avail according to their purchase habits.
An individual should consider the following aspects to avail the right credit card for themselves –
- Interest rate – An individual who fails to pay their card outstanding within the pre-set due date is liable to pay interest. Note that credit cards are higher than on most other financial products. A user can face unforeseen circumstances, so, it is better to know which financial institution offers a relatively competitive interest rate. Other than knowing which financial institution offers a more affordable interest rate, for their own reference, an individual should know how such interest is calculated as well to best plan contingency finances in case they are unable to pay the accumulated debt.
- Credit amount – An individual is assigned with a certain amount with their credit card which is the total credit amount of that specific card. The assigned amount may vary as per the user’s income, credit score, employment stability, and various other factors.
- Charges – Most financial institutions offer quick approval on the credit card application of their customers. Financial institutions like Bajaj Finserv offer the Bajaj Finserv RBL Bank SuperCard with minimal annual and joining fees.
- Affordable EMI – An individual should choose their lender according to their repayment capacity. For borrowers, financial institutions who offer a comfortable EMI facility with part-payment policies can help financially. For instance, the RBL Bank credit card mentioned above offers comfortable EMI conversion for transactions above Rs.3,000.
- Security – One of the essential features to look for to choose the right credit card is to determine which financial institution offers relatively better security measures. NBFCs can offer security features like, ‘zero-fraud liability cover’, ‘in-hand security’ etc. which is used against cybercrime threats. Furthermore, online apps are available so the use can better manage their credit cards as per their convenience. Top feature-rich cards come with in-built security measures to help users avoid fraudulent activities against them.
- Rewards – One of the beneficial aspects of availing a credit card is to obtain various add-on rewards. An individual can earn reward points as per transactions or purchases. These credit card reward points can be redeemed in various ways for numerous attractive financial benefits.
- Cash withdrawal from ATM – An individual can choose the right credit card based on the feature of availing interest-free cash withdrawal from ATMs. Although most credit card issuers do not encourage using the card for cash withdrawals, leading financers offer a 50 day interest free period on such withdrawals.
A credit card can help an individual to substantially increase his/her purchasing power and meet financial requirements ahead of time on credit. Refer to a leading financer to avail the most beneficial credit card as per your financial requirements.