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How To Choosing And Applying For A Best Credit Card

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How To Choosing And Applying For A Best Credit Card

credit card is a payment card issued to users to enable the cardholder to pay a merchant for goods and services based on the cardholder’s promise to the card issuer to pay them for the amounts so paid plus the other agreed charges. The card issuer (usually a bank) creates a revolving account and grants a line of credit to the cardholder, from which the cardholder can borrow money for payment to a merchant or as a cash advance

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A credit card is different from a charge card, which requires the balance to be repaid in full each month. In contrast, credit cards allow the consumers a continuing balance of debt, subject to interest being charged. A credit card also differs from a cash card, which can be used like currency by the owner of the card

Choosing a credit card is an exercise that must be done with utmost diligence as it can have a significant impact on your financial well-being. Here’s a guide to help you with your credit card application and make an informed choice.

Do your research

The market is flooded with different types of credit cards offered by financial institutions. While every issuer claims its offering to be the best and serving your needs, it’s essential to do your own research. The information on various cards is readily available online and there are various aggregator websites for easy comparison.

During your research, go through the terms and conditions (T&Cs) and associated charges among others and apply for a credit card that best aligns with your needs.

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Analyze the card’s essential features

While making a credit card application, it’s important to know other important features of a card apart from the offered credit limit. Find out the duration of the interest-free period, penalty charges if the outstanding amount rolls over the due date, the billing cycle, etc.

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New-age credit cards like the Bajaj Finserv RBL Bank SuperCard allow interest-free withdrawals from ATMs for up to 50 days, charging just a 2.5% processing fee. You can also convert the credit limit into a personal emergency loan, if required, and repay it in 3 easy EMIs.

Find out your credit card eligibility

Gauging your credit card eligibility is another essential factor to consider. In case you fail to fulfil the eligibility as specified by the issuer, your application may be rejected. Generally, credit card eligibility factors in your age, income, city of residence, and present financial commitments among other.

Another crucial factor which can affect eligibility is credit score. A high score, above 750 in most cases, boosts creditworthiness and enhances eligibility. Hence, it’s prudent to check your credit score before applying. You can either check your score from the available credit information companies (CICs) in India or third-party websites by entering your name, DOB, mobile phone number, PAN and email.

Find out about reward points

Every credit card gives reward points upon purchase of an item or product. These points can be redeemed to avail discounts on future purchases. Before opting for a card, find out about its reward points, how you can accumulate them and the benefits you would get through those points.

For instance, you can earn up to 20,000 reward points through the Bajaj Finserv RBL Bank SuperCard and avail exclusive benefits on purchases made at Bajaj Finserv partner stores.

Some cards allow the reward points to be converted into air miles and avail credit card benefits on purchase of flight tickets or any other activity during travel.

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Lastly, do provide all the essential documents pertaining to your income, age, address, etc., to your card issuer to expedite the process.

So, what do you think about this? Simply share all your views and thoughts in the comment section below. For the latest tech,social media news and reviews, follow firebebble.com on Twitter, Facebook and Instagram



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