How to choose the right Credit card???
We have already read a variety of interesting tit-bits about credit cards in our ‘good returns’ pages. We will see how to select the right credit card. Just like other credit avenues, we have to consider different aspects after reading & listening to others. Here is a list of important aspects we must consider before selecting the right credit card:
Annual payment - Annual payment is an important aspect. Generally, the higher the annual charges, the more are the benefits or concessions. However, it is better to choose the credit card to suit your specific needs. It is better to study the annual charges to benefits in detail.
Interest Ratio - This is another important factor which will ensure the best optimum use. If you default on the payment of loan, this ratio will determine the amount you have to pay. Even though it appears that all banks charge more or less the same interest ratio, some banks are different. For example, State Bank of India charges an annual rate of 27% for their SBI Advantage Bus Cards. For getting the best benefits, the credit card holder should keep some Fixed Deposit in that bank. Actually, the maximum credit limit is reckoned to be 85% of that FD.
Security - With the ever-increasing credit-card swindles security is another important aspect. Please check whether the new credit card given to you has all the security features. For example, check whether the card has facilities such as ‘PIN-enabled’ or ‘EMV-SIP Paste’.
Reward Points & Cash-back - this is another important factor. You will have to decide according to your specific needs. For example, there are cards which offer attractive rewards for people who travel frequently & extensively. If you are not a frequent traveler, it may not be of much use to you. Check why your reward points become useless.
Good benefits - It is better to consider the positive aspects as well. Some cards give a certain discount while buying fuel. Some other cards give discounts from departmental stores or supermarkets that have an understanding with that bank.
Sign-up bonus - many credit cards give sign-up bonus such as reward points or cash-back offers.
Customer Service - If
you become a trust-worthy card holder with regular payments, you will get the
best customer service.
