HomeFinance5 points to know just before applying for a credit card

5 points to know just before applying for a credit card

Credit cards are highly effective tools if utilized appropriately. Treat credit cards like a sharp knife or a chainsaw. If you do not use them nicely, they have the capacity to inflict more harm than superior.

The time of money-primarily based transactions is rapidly receding. Credit cards and digital modes of payment are becoming the norm. Cashless transactions are gaining all the more prominence in a speak to-free of charge post-pandemic atmosphere. Credit cards are one particular of the greatest selections when in require of some immediate revenue. Here is what you should know just before you apply for a credit card.

Annual Percentage Rates



This is the interest price that you are liable to spend from month to month on the balances that you hold. Rohit Garg, Co-founder and CEO, SensibleCoin says, “One should note that such cards often carry penalty APRs, which are enforced in case of late payment. It can range from 15 per cent on the holding balance to as high as 42 per cent, depending on the bank.”



Perks

Your credit card may supply a loyalty point, cashback, or some other sort of discount or other thrilling presents. In order to provide competitive prices to their customers, credit card issuers generally companion with airlines, supermarkets, petrol stations, and distinct corporations and service providers to attract shoppers.

Add-On card

By opting for an add-on card, you can expand the perks of your credit card to your dependents and quick loved ones members. Garg, of SensibleCoin, says, “Keep in mind, an extra card is nothing but a credit card expansion that you are liable for paying alongside your primary payment.”

Your credit history

Credit card issuers report to organisations such as credit bureaus or credit rating agencies about your month-to-month credit card use. For every particular person with a credit card, loan, or other types of credit-primarily based account, these bureaus keep a corresponding credit history. Certain credit card errors — like late payments and higher balances — will turn up on your credit report and brings down your credit score. This tends to make it tough to attain more credit cards or loans in the future.

Comparing credit cards

If you are hunting to apply for a credit card, authorities say, evaluating distinct selections is one particular of the greatest points to do. When you examine the cards you are eligible for, you will be capable to establish a card that suits your specifications. Additionally, third-party internet sites can assist you examine a variety of credit card types issued by a couple of of India’s top banks.

Credit cards are highly effective tools if utilized appropriately. Garg, of SensibleCoin, says, “Treat credit cards like a sharp knife or a chainsaw. They’re powerful tools, but if you don’t use them well, they have the capacity to inflict more damage than good.”

Stay Connected

16,985FansLike
2,458FollowersFollow

Must Read

Related News

LEAVE A REPLY

Please enter your comment!
Please enter your name here