A credit card has steadily and slowly turned into a requirement for many. With numerous valuable features and benefits on offer, this card has nonetheless proved to be a magical tool. Instead of carrying huge cash in your purse for transactions, a credit card is much easier to manage and handle. With changing times, various individuals have transformed and adopted the regime of using credit cards, few are in transit mode, and others are cautious and do not want to use these cards. Those who find credit cards worthy often remark it as an excellent value for money due to their benefits like reward points, offering deals and discounts.
However, there are many who are not convinced of the advantages as they made an incorrect decision while picking up credit cards. For instance, suppose you are looking for a fuel credit card that can help you save on your fuel expenses; however, instead of opting for an HDFC Indian oil credit card, you make the decision to choose an HDFC freedom credit card. This is one of those choices, and they may make you regret your decision to choose the incorrect card. So, how can you correct this decision? Yes, you can correct this decision here by upgrading your HDFC freedom credit card to an HDFC Indian oil credit card.
In case you are in this zone and think you want to give credit cards a second chance, then you must read on because there are other ways too through which you can maximise your credit card benefits. Note that every credit card has different features that are specially targeted to a particular set of users. It’s you who must cherry-pick a particular credit card that best matches your lifestyle. One of the crucial things you must remember while availing of a credit card is that besides using them as per your repayment capacity, you must also ensure to make your repayments on time.
In case you do not make the repayment of your credit card balance every month in full and carry forward a few of the outstanding balances to the upcoming months, then your initial goal must zero on a credit card that charges minimum finance charges. However, in any case, ensure always to make full repayment of your credit card dues. Only during financial emergencies or mismatches not making credit card repayment acceptable; otherwise, it is not. This is because this specific card comes with high finance charges that may go as high as 52 per cent p.a. Thus, accumulating your outstanding month-on-month will accumulate not just a massive outstanding credit card due but also finance charges and late payment fees.
How must you select your credit card?
There are various crucial parameters that you must check before choosing a credit card. You must assess each of the parameters, benefits and features offered by the credit card issuer and select the one that would best work for you.
Also Check:HDFC freedom credit card
APR (annual percentage rate) – An APR is nothing but a numeric representation of your rate of interest. When determining between the credit cards, APR may assist you in comparing how costly a transaction will be for everyone. Most cards provide a grace period (interest-free period) for all new buys. If you make a thorough payment on or before the due date, zero interest constituent will be charged. However, if you choose to carry a balance on your credit card, you may have to pay the agreed interest on the outstanding balance. Thus, if you pay your credit card dues monthly in full, APR must not be a crucial criterion for selecting your credit card.
Annual fees – A high annual fee may nullify all advantages that you may get from a credit card every year. However, many credit card issuers hold a predetermined minimal spending limit. This is used as a threshold for the purpose of waiving the annual charges. For instance, HDFC Millennia charges Rs 1,000 annual charges and waives this off in case you spend Rs 1 lakh and above in a year. Thus, it is recommended to always review your annual spending pattern against your threshold amount by the credit card issuer before you choose your credit card.
Reward points – Credit card issuers incentivise customers with cash back and reward point offers for using the credit card that they provided. Few issuers offer 5 points on spending every Rs 150 at fuel, fine dining outlets as well as hotels. Thus, it is necessary to compare the offered reward points on every credit card before you opt for any one credit card. If you make an expenditure in grocery shopping in a specific month than dining out or fuel, then it makes complete sense to choose a credit card with higher grocery benefits.
Redemption of reward points – The reward points accumulated over a time period can later be redeemed for air miles, cash back, goods and services based on your credit card’s reward points. Few credit card issuers provide a plentiful of choices to redeem with a never expiring reward point program, while others offer a limited validity on reward points offered. You must ensure to pay attention to all the terms and conditions before you select a credit card that you think would work for you the best.
Due date – Ensure to check the credit card’s due date while conducting your research on different credit cards before you place the application request. A credit card with the due date as the 30th of each month may not work for you as your account gets credited with your salary on the 5th of every month. To avoid any delay in the repayment, you must ensure to be careful with the credit cards’ due date and must choose the one that is feasible for you.
Customer care – Customer care support plays a crucial role during your journey with a card. In case you are looking for a hassle-free credit card operation, ensure to opt for a card with world-class customer support. There may be times when you may not be able to repay your credit card due by the due date. An efficient customer care unit may listen as well as understand your issues or problems. It may be possible that post listening to your issues, your customer care support may extend you a grace period or an interest-free period by two more days without levying any late payment fee and finance charges.
Grace period – While most card issuers provide almost the same range of interest-free or grace periods, i.e., generally that ranges between 45 and 55 days, having an additional four days can, at times, make a massive difference. You may prefer a grace period or interest-free period of 52 days over a credit card providing a grace period of just 45 days.
