How To Look For The Right Credit Card

Planning to apply for a Credit Card? Are you looking for some great deals? Trying to find the right plastic buddy could be a little tiring. To ensure that you make the right choice, BankBazaar is here to guide you to keep some important things in mind.

Credit-cards

It’s not just about getting a plastic card that can make your life more convenient and cashless. There’s a lot more to it. Apart from just letting you buy stuff and giving you the option to pay later, here’s what a Credit Card does for you:

Go Cashless

Tired of carrying that loaded wallet all the time? A Credit Card can surely simplify your life and lighten your pocket as well. With your plastic friend in your pocket, the chances of losing money reduce significantly.

Improves Your Credit Score

If you pay all your bills on time, a Credit Card can help boost your Credit Score. A good Credit Score can also significantly improve your chances of getting a loan/Credit Card application approved. Just train yourself to use a Credit Card wisely and you’re all set.

Online Shopping

Online shopping becomes way simple with a Credit Card in your wallet. Using the ‘Cash on delivery’ option might not be a convenient choice all the time. Besides, online shopping with a Credit Card also lets you win cashback and some great rewards.

Emergency Money

You can always rely on your Credit Card in case of an emergency. Life is unpredictable. Someday, you might find yourself in a situation where you urgently need money but have no backup plan. In such a sticky situation, you can always rely on your plastic friend.

Rewards And Discounts

Another reason that makes Credit Cards a better choice over Debit Cards is –rewards and discounts. These rewards depend on the type of card you’ve opted for. Some other amazing rewards include cashback, free access to airport lounges, frequent flier miles and much more.

Record Of Your Purchases

Do you end up losing track of your expenses every month? With a Credit Card in your pocket, you no longer need to worry. With your Credit Card statement, you’ll be able to track your expenses, which can help you immensely when planning your monthly budget.

Getting a Credit Card is not a bad decision, as long as you maintain it right. Now, let’s tell you how to look for the right Credit Card:

Travel Credit Cards For The Travellers

Do you travel too often? If yes, you definitely need to get a travel Credit Card (along with a regular card).

Why so? Travel Credit Cards are designed to help avid travellers get discounts on flight tickets and hotel bookings. If you want to score some handsome seasonal discounts, try making all travel bookings using a travel Credit Card.

Additionally, the amount you spend is added to your air miles or points, which can fetch you more discounts on your next purchase. Not just this. You also get to enjoy some free bonus time at airport lounges. Go on, pamper the travel bug in you.

Shopping Cards For The Shopaholics

If you’re a shopaholic, you need to get yourself a Credit Card exclusively meant for shopping. These are mainly of two types—Cashback Cards and Reward Cards. If you shop way too much, reward cards are the best since they accumulate points every time a purchase is made using the card. These points can then be redeemed for a range of products.

If you don’t shop much, you can consider going for Cashback Cards. These offer upfront cash back for each buy, just like retailer discounts. Moreover, these cards can be used for any purchases and bill payments as well.

Co-branded Cards For Brand Fanatics

Do you love a brand so much that you only buy their products no matter what? Don’t worry! This brand loyalty can actually help you save better. How? That’s when co-branded Credit Cards come into the picture.

Co-branded Credit Cards are issued by banks in collaboration with various retail stores and brands offering dedicated discounts for their regular customers. You essentially get paid for your loyalty. How cool is that?

Fuel Credit Cards

For those of you who are always on the move, saving every penny on fuel can be a big relief. So, next time when you pay for fuel, do it with a fuel card or petro card, to accumulate points on fuel buys. Some fuel cards even offer upfront cashback.

Specialty Credit Cards

Specialty Credit Cards are designed exclusively by the company for certain specific purposes. These speciality cards include women-centric Credit Cards, student Credit Cards and other lifestyle Credit Cards that are customised for a specific set of users.

 

Now that you’ve explored different types of Credit Cards, choosing the one (or many) that suit your lifestyle is not difficult. Whatever your need may be, BankBazaar has a plastic soulmate tailor-made just for you!

Download the BankBazaar Mobile App now for the best credit card offers!

New to Credit Cards? Here’s All You Need to Know

So you’ve decided to take the plunge and get yourself a credit card. Unwrapping that shiny little piece of plastic opens you to a world of benefits and privileges. However, there are certain rules to live by if you want to avoid falling into a debt trap that could see your credit worthiness spiral downwards and make you a financial persona non grata.

credit cardbalance transfer

A credit card gives you the freedom to spend money that is not debited from your bank account up to a certain sum for a fixed period of time. Thus, credit cards make credit available to you as and when you need it. The amount is to be repaid based on your billing cycle to avoid penalties and fines. While the initial rush of swiping your card everywhere you go might seem the way to go, here are some points to keep in mind so card debt does not loom on your financial horizon:

 

  • Credit Card Charges:

A credit card usually comes with a whole list of Credit card charges, beginning with the joining fee. Additional charges include the annual fee, statement fees, service tax, surcharge, late payment fee, card replacement fee, etc. Exceeding your credit limit on your card will attract a charge as well. Delayed payment of your dues will also result in a penalty, which will be levied on your subsequent bill.

Not paying off the total amount due on your credit card will attract interest charges, which could be anywhere from 3%-4% a month. Doesn’t seem like much, you might scoff, but when annualised, the rate amounts to a whopping 48% on the higher end of the interest spectrum. This amount is also levied on each successive bill that has a balance carried over, which will inflate your overall amount due by a significant amount.

  • Picking a Credit Card that Suits Your Needs:

Picking a credit card that suits your needs is important, as this could be the deal breaker between you enjoying the perks of a card and drowning in a sea of debt. If you’re looking for a card merely to help you keep up with payments and aren’t looking for any perks, a no-frills card is the best bet for you. Looking for discounts each time you swipe at a store? A shopping credit card that offers cashback or in-store rewards is the one for you. Frequent travellers can benefit from a travel card, which converts points into air miles redeemable on flights or hotel stays.

  • Dates to Remember:

With your new credit card comes a host of important dates that you have to keep in mind, such as your bill payment date, the date the bill is generated etc. The date your bill is generated on marks the end of your billing cycle and lists your outstanding dues for that period only. The bill payment date is the date by which you are expected to pay off the outstanding amount or the minimum amount due to avoid late payment charges.

    • Credit Card Application Status

      Different banks have different ways of credit card application status but most of them have an online facility, where you can apply for a credit card online as well. The process then involves furnishing all required documents and information to the bank. Once, the application process is complete, you must track your application status to check how far long has it been processed by the bank so that you can follow up with the bank accordingly. Usually, it takes up to three weeks to receive your credit card from most banks. Credit card may take a month from the date of registration, as it undergoes processing request, followed by dispatch to your home address.

  • Minimum Due versus Full Payment:

Credit cards offer you the chance to pay off your debt in instalments, either before the due date or after it. It is always advisable to pay off your outstanding amount by the due date to keep your credit score and repayment history healthy. However, if you are unable to pay off the whole amount, you are required to pay a minimum amount, usually a percentage of your total outstanding amount.

Getting away with paying just the minimum amount brings with it a set of charges though, since you will be paying interest on the balance amount. You will also lose out on the interest-free period, meaning every successive transaction will incur interest from the day the purchase is charged to your card.

As seen above, there are quite a few pitfalls associated with credit cards that, if you aren’t careful to avoid, could leave you in debt for a considerable amount of time. Being prompt with payments, avoiding maxing out your credit card and being prudent with what you charge to your card will ensure that you reap the many benefits that come with credit cards.

 

Save Cash Using Credit Cards

Many people are aware of the fact that a credit card allows purchase of products or services on credit, but not everyone knows that this same card can help them save money as well. Yes, in India credit cards offer certain benefits using which cardholders can save cash. One must remember that the benefits differ based on the type of card being purchased.

Apply Credit Cards in India

Some of these benefits that help save are as follows:
Protection Against Fraudulent Activities – If you lose your wallet, you will  end up losing all the cash in it for sure, but if you lost your credit card, you do not have to be sad because most credit cards have zero lost card liability feature. This feature protects people from fraudulent transactions made using their cards in case it’s stolen or lost. Some cards protect the customers even before they lose their cards. Apart from this, credit card companies in India protect cardholders against online frauds through various ways. One of those is the multiple steps involved in the online payment authorization process.
Life Insurance – If you have a credit card that offers free travel or life insurance, you can save a lot of money and at the same time feel protected. Some cards even provide insurance against hijack to people when they travel by flights.
Low Charge for International Transactions – If you travel abroad a lot, then buying a credit card that charge less for foreign transactions is a good idea. Credit cards offer really good forex rates and there are some cards that only charge around 2% transaction charge. Even while purchasing products from foreign websites, using such cards might benefit you a lot.
Lost Baggage Claim – Some credit cards offer insurance for lost baggage when cardholders book their flight tickets using them. If you own one such card, then you can claim the amount mentioned in the card insurance policy easily if you lose your baggage.
Free Access to Airport Lounges – If you want to visit an airport lounge, you will be asked to pay an entry fee, but if you own a credit card that offers free access to airport lounges, then you can enjoy the facilities of the lounge and save money.
Free Club Memberships – Some credit cards offers free memberships of different clubs to the cardholders. For example – Golf clubs, Vistara Club, Hotel memberships, etc. These memberships help them enjoy discounts and other deals that are available exclusively to the members.
Credit History – Credit cards help you a lot in building your credit score. This score measures your credit worthiness and is used by banks while deciding if they want to provide a loan to you or not. Use your credit card wisely and pay the bills on time to increase this score.
Loan on Credit Card – Many banks provide loans against credit cards to customers. The credit worthiness in this case is decided based on the cardholder’s card usage pattern and credit limit. If cardholders have a very good history of bill payments, then banks may approve their loan requests easily.
These are some of the many credit card benefits that help cardholders save cash. Many people think that credit cards only offer reward points or miles. It is not true, credit cards have a lot to offer if you know how to use it well. People can end up with serious financial issues if they do not use their credit cards carefully.
All said and done, credit card is an amazing financial tool and if you don’t have one, apply for it today and enjoy saving while spending.