Your Credit Card And The Application : A Quick Checklist
The growth of Unified Payments Interface (UPI) transactions shows no sign of stopping. The figures by volume and amount are increasing month-on-month, making UPI one of India’s most popular methods of transactions.
That said, credit cards remain India’s most popular digital payment mode. They’re easier and more convenient than UPI as you use the bank’s money for payments. But that doesn’t mean you should get any credit card in the market. This article provides a thorough checklist you should use to shortlist the best credit cards in India.
Check the credit card annual fee
Ensure you know as much as you can about the repayment cycle of your credit card dues before you apply for a credit card. One way to do the same is to inquire about the credit card annual fee. Some banks charge an annual fee for their credit card services. You could also do away with annual fees by opting for a lifetime free credit card with IDFC FIRST Bank.
Compare credit card APR and interest rates
While looking for credit cards, you must know about the “Annual Percentage Rate” (APR) or the annual interest rate charged for failing to pay your outstanding credit card dues. You can calculate the monthly interest rate by dividing the APR by 12.
Confirm the length of the grace period
Every credit card issuer offers a grace period to their credit card customers, which is the period starting from the date of issuance of the credit card statement to the due date on or before which the dues must be cleared. This period may range between 14 and 21 days. You must know the length of the grace period before applying for a credit card.
Check the rewards on offer
Banks like IDFC FIRST Bank offer attractive rewards for using their credit cards. But ensure you research the rewards, cashback offers, and other benefits you can avail of from your credit card before applying.
Enquire about the balance transfer facility
A balance transfer facility allows you to transfer your outstanding credit card balance to a new credit card with lower interest. It helps you save on interest costs and gives you an extra period to repay your dues. Credit cards that offer a balance transfer facility are preferable to the ones that do not provide this facility.
Know about the flexibility of the tenure
Try to opt for a flexible tenure while choosing a credit card. You can choose a longer tenure to reduce the value of your Equated Monthly Instalments (EMIs), but bear in mind that doing so could result in higher interest costs. You must balance the number of EMIs and the credit card tenure.
A credit card is an excellent financial tool, but finding the one that suits your needs takes time. Following a tried and tested checklist can reduce your efforts and help you quickly find the right credit card.