How To Choose The Best Credit Card For You

By BankBazaar | March 22, 2017

How To Choose The Best Credit Card For You

We are living in a world where plastic money is increasingly becoming the common mode of payment for all kinds of financial transactions. Credit Cards have taken over our wallets as swipe now and pay later has become the norm.

Whether you’re a newbie to the Credit Card world or a Credit Card veteran, the process of selecting the perfect plastic mate can be a daunting task considering the hundreds of Credit Cards available in the market.

In order to choose the best Credit Card for your needs, follow the steps mentioned below:

  1. Check your Credit Score

Before you start the procedure of applying for a Credit Card, it is essential to check your Credit Score as it often dictates your eligibility for a certain Credit Card.

Want to check your Credit Score for free? You can on BankBazaar. Just click here

If your Credit Score is low, it will not only increase the Credit Card interest rate offered to you, but it can also lead to the rejection of your Credit Card application. Mend your spending habits and improve your Credit Score to enjoy the best Credit Card perks.

Additional Reading: 3 Ways To Improve Your Credit Score Quickly

  1. Choose the type of Credit Card you need

Credit Cards can be majorly classified into three types:

 Credit Cards to help with your Credit Score

If you are stull young and don’t have much of a  credit history, you should opt for a student Credit Card aka credit building Credit Cards that will help you build your Credit Score.

Additional Reading: How To Improve Your Credit Score Using Your Credit Card

Credit Cards with a low interest rate to save money

If you have a large outstanding balance on your Credit Card and want to save money by paying less interest, then you should look at Credit Cards with 0% APR. You can utilise the balance transfer option to clear your pending debts, interest-free (this will be for a limited period). You can also opt for cards with low interest rates.

Psst! You can compare rates and apply for a Credit Card on the BankBazaar website.

Additional Reading: Balance Transfer Between Credit Cards: Things To Consider

Credit Cards with exciting rewards and offers

If you want to enjoy cash back offers, reward points, and discounts on your Credit Card expenditure; then you should look for rewards Credit Cards.

Choose the type of Credit Card according to your needs.

Additional Reading: Top 10 Cashback Credit Cards In India

  1. Question and Answer:

Once you have selected the type of card you need, ask the right questions to streamline the search for your perfect Credit Card.

If you choose Credit Cards to improve your Credit Score, make sure you ask yourself the following:

Will it really help me build my Credit Score?

Check if the Credit Card issuer reports your good credit habits to CIBIL and other major credit organisations. If they don’t do it, your credit building activity will be hampered.

How much does it cost?

Since these cards are low on rewards, the processing fee and annual fee should be minimum. If opting for a secured card, take the one with the lowest security deposit.

If you choose low interest rate Credit Cards for debt clearance, try answering these questions:

What is the period of 0% APR?

If you are considering clearing your debt through a balance transfer, then check the 0% APR period of the Credit Card. If you can’t clear your debt within that period, make sure that the APR rate is low

Are there different APR rates for different uses?

Generally, a Credit Card might have a 0% APR for old debt clearance but might charge you a high interest rate for all new purchases.

Is there any limitation on the balance type and balance amount that could be transferred?

Some cards impose conditions such that only a certain kind of debt and only a certain amount of balance can be transferred. Also, don’t forget to inquire about the balance transfer fees.

Any rewards to offer?

Though offers and rewards are not your priority, it is good to know if the card offers rewards once you are done clearing the debt.

Additional Reading: How To Use Balance Transfer To Cut Down Existing Credit Card Debt

If you choose Credit Cards that are high on discounts and rewards, try answering these questions:

What do I spend most on?

Depending upon the answer to this question, you can decide what kind of rewards card you should opt for. For eg: If you are a travel junkie, then opt for Airline Credit Cards that give Air Miles.

What is the reward policy?

Some cards have loyalty tiers and spending caps that give out offers and rewards to only customers who use the card often and have spent a considerable amount of credit on the card. Opt for cards that give offers and rewards with a low spending cap.

How much are the rewards worth?

Check if the rewards like cashback, discounts, etc. offered by the card are worthy enough to warrant Credit Card expenditure.

Additional Reading: How Do Rewards Programs On Credit Cards Work

Once you have satisfactorily answered all these questions, you will have narrowed down your Credit Card search and possibly found your perfect match.

Choosing the right Credit Card is a meticulous process and requires patience. Don’t rush into it. Zero in on a card only after you have followed this three-step process to find your plastic soulmate.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.

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