Finding credit cards that fit your lifestyle is an intimidating task. You may get confused about How To Choose a Credit Card for The First Time because of the vast options are available.
Moreover, overindulgence with wrong cards can land you up with a huge debt. So, picking up the right card becomes more essential.
Applicants must consider certain factors to apply for a credit card that caters to their necessities. This is more because each card has different features and benefits.
How To Choose a Credit Card for The First Time
So, if you are in search of a proper credit card suiting all your basic and secondary needs, consider a few aspects before filling the form.
#1. Choose according to your lifestyle & expenditure pattern
Your lifestyle mainly pulls the trigger when it comes to your financial condition. Time, income, and mobility are the three main elements required to lead a proper lifestyle.
However, your income and spending habits are enough when it comes to finding the best credit card. Many lenders offer cards according to your needs and lifestyle. For example:
#2. Purchase card
You can opt for a purchase card if you tend to spend on both high-end and mid-range purchases often. Such cards can help you earn attractive reward points which can be later redeemed for cashback and upfront discounts. These benefits can help you save more on your expenditures.
#3. Balance transfer card
Transferring your balance means moving all/part of your debt from one card to another. People usually use this facility to take advantage of the lower interest rates.
You too can apply for a credit card with this feature if you are high on debt. Some factors to consider when choosing a balance transfer card include:
- The interest rate you are currently paying
- The rate you will pay to the new lender
- Amount of balance transfer fee
Financial institutions like Bajaj Finserv come with flexible balance transfer options and a nominal interest rate.
They also provide tailor-made pre-approved offers on credit cards along with personal loans, business loans, home loans, and many financial products as well as services.
This scheme not only simplifies the process but also saves a lot of time. You can check your pre-approved offer by submitting a few necessary details online.
#4. Cards for overseas use
Look for an interest-free cash withdrawal facility if you are seeking a credit card to use abroad. With these, you don’t have to deal with the hassle of converting currencies and you will inevitably get one of the lowest possible rates.
#5. Travelcard
It is the best option if you are a frequent traveler. There is a lot of flexibility in the travel rewards. You can redeem these points to waive the luggage fee, access the airport lounge, and even get complimentary hotel stays along with discounts on flight tickets.
So, choosing a travel card is no doubt beneficial with such features. You can access luxury for less. Thus, the options are vast. With proper market research and self-evaluation, you can get one step closer to the right card for you.
#6. Select as per your purpose
Undoubtedly, you will apply for a credit card to address an emergency cash crunch without having a dip in your savings.
However, the bigger picture has something more to offer. You can select a card to build your credit score at a quick pace.
35% of your CIBIL score accounts from credit cards only. You may have a poor score and paying off bills in full each month can amend the same to a great extent.
A sound CIBIL score can help you avail future financial help to meet monetary discrepancies.
#7. Few things to remember before application
The application process for credit cards is a little comprehensive. You must match the required eligibility criteria to enjoy most of the features. New-age cards like Bajaj Finserv RBL Bank SuperCard come with favorable terms.
You can get a suitable one with a sound credit score of 750+, and by falling under the age group of 25-65 years. However, you should not be a defaulter in past payments.
So, getting the right rewards credit card is easier now. Make sure to keep all the documents handy for faster approval from your lender.
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