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Credit Cards

How To Choose The Right Credit Card?

Previously we discussed that there are different types of credit cards available, each having unique features and benefits, but how to choose the right one for yourself. The wide range of credit card offers available can be quite daunting. So many options can make the task of choosing the right credit card for yourself quite difficult. Here are some of the things that you should consider while assessing different credit card offers. 


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Evaluate the features

Check out the features of the credit card and whether they match your spending type. For example, if you travel abroad often, you would want a card that has minimal foreign exchange fee, has frequent flier miles program and gives lounge access. On the other hand, if you shop online regularly, you would want a card which has great offers on online shopping. Check the reward points, cashback facilities, discounts and privileges to decide the right credit card for you. 

 

Interest charges

This directly affects how much you pay back to the card issuer and hence should be a primary criterion. Some lenders charge higher interest than others. Some also offer lower interest in lieu of an annual fee. 

 

Fees and charges

A very important aspect. If it is free for the first year, does it have any fees from second year onwards? Is it too high for you? What are the other charges? Evaluate the schedule of charges carefully.

 

Credit limit

What is your monthly spending? Is it high? Then you might want to choose a credit card with a higher credit limit and flexibility. 

 

Ease of usage and payment

Finally, consider how easy it is to use the credit card and pay the bill. While most lenders offer online payment, still this is something to consider.

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Units 6/12