Credit cards are one of the best ways to increase a person's purchasing power. They also offer rewards on your spending, such as cashback and discounts. To maximize these benefits, you should compare different credit card offers before choosing the right deal for you. Let’s take a look at features, benefits, and other important information about credit cards.
Features & Benefits of a Credit Card
- Rewards Program: When you use your credit card, there is a reward program that allows you to earn points or other rewards.
- Welcome Gift: Banks often offer new credit card applicants a welcome gift of bonus points, discounts, or vouchers.
- Cashback Benefits: Some credit cards offer benefits for their customers, such as cashback.
- Travel benefits: There are some amazing travel benefits that credit cards offer, including air miles, airline offers, airport lounge access benefits, hotel offers and more.
- Insurance Coverage: When you have a premier card, it provides comprehensive insurance coverage for incidents including air accidents, lost baggage and life.
- Airport Lounge Access: Some credit cards offer complimentary airport lounge access to their holders. It also varies from one bank to another, which is why it's important that you compare various options before choosing the right card for your needs.
- Balance Transfer: When you're applying for a new credit card, you can transfer the outstanding balance of your existing cards issued by one bank to the credit card account of another bank.
- Fuel Surcharge Waiver: Banks offer the cardholders a fuel surcharge waiver if they spend a specific amount of money on fuel every month.
Different Kinds of Credit Cards
- Shopping Credit cards
- Travel Credit cards
- Lifetime-free Credit cards
- Fuel Credit cards
- Rewards Credit cards
- Entertainment Credit cards
- Co-branded Credit cards
How to choose a credit card that's right for you
It may be difficult for you to choose the right credit card. Some people want a card that gives rewards on all their purchases, and others only want one with an Amazon co-brand. The best way to know which type of value-back is needed is by understanding your spending preferences and deciding what would benefit you most from a credit card purchase. A good starting point in choosing the perfect card is understanding how often you shop online across many websites/platforms or when shopping at certain retailers like Amazon.
To help you figure out which credit card is right for you, consider these questions.
- What are your credit options?
- What type of value would you like to receive? Rewards, cash back or airline miles?
- Are you already a credit card holder?
- What kind of purchases might you want to get the highest value for?
- Would you prefer an airline, shopping platform or brand?
Credit card Eligibility
With credit cards, the eligibility criteria vary for different card variants offered by the same issuers and from one issuer to another. The major difference in the case of credit cards is likely to be the income requirement - which remains constant across card variants. While the basic requirements like age, city of residence, source of income, and credit score are all necessary factors.
Salaried or Self-employed
Depends on one bank to the other
Good credit score (700 and above)
The list of required documents to apply for a credit card varies from issuer to issuer. Some of the key documents that are often requested include:
- Identity and Signature Proof including Passport, PAN card, Driving Licence, Voter ID card, Aadhaar Card.
- You will need address proof for your bank statement, rent agreement, voter ID card, ration card or passport.
- Your Voter ID card or Secondary School Certificate (class 10) is acceptable as proof of age. You'll need your Passport, Aadhaar Card, and birth certificate to prove your identity. A pension payment order or Receipt of LIC policy can also be used for this purpose if you don't own a voter ID card.
Which Credit Card is Right for You?
- Your spending pattern is a key factor in choosing the right credit card.
- There are several types of rewards credit cards offer, including cashback, reward points, and air miles.
- You can compare the interest rates and fees on different cards to find out which card is best for you.
- Some cards offer discounts or other benefits when you shop at a particular website or in an associated store.
- Some banks offer their customers a welcome gift and bonus points. The benefits of these gifts may be the latest gadget or additional reward points, miles, etc.
How to Utilize a Credit Card?
- Utilize the accurate card for the accurate purchase: If you have more than one credit card, it's crucial that the right card is used for the intended purchase. For example, if someone spends a considerable amount on travel, such as booking flight tickets and hotels with a specific card, they can earn reward points from doing so.
- Pay bills into EMIs: Convert your purchases into EMIs, and repay the bill as per your convenience. It is the most excellent method.
- Shop online using your reward points: With a credit card, you can earn 2x reward points on purchases made online.
- Redeem your reward points: Banks offer their credit card users a number of rewards to use in their everyday lives. These reward points allow them to redeem discounts on hotel bookings, flight tickets, etc., which provide exclusive shopping vouchers and cash back deals for the user
Why must you have a credit card nowadays?
- Helps build a good credit score.
- Interest-free credit period of up to Forty-five days.
- No hassle, fast transactions both online and offline.
- It is useful in emergency financial situations.
- In order to make big-ticket purchases and pay later with easy EMIs.
- All transactions are secure because they require OTP & PIN authentication.
Things to consider in mind before applying for a Credit Card
- Credit card statement: Credit card bills or statements are generated every 30/31 days. The first bill is created on the day you sign up for your credit card, and subsequent months follow that same date. In addition to the amount due, a statement provides a detailed record of all your transactions during the billing period.
- Credit Card Fraudulent Transactions: All the time, there are fraudulent credit card transactions happening. In today's world, phishing and vishing have become very common tactics used to steal your information, including your credit card number. You should be vigilant about any strange email or phone call that you receive from someone who seems suspicious and needs to be reported immediately by contacting your bank at least within two days of receiving it.
Just remember that with more cyber scams going on than ever before, you need to be careful where and how much personal info, such as a credit card, is given out so no one can use it against you!
Q: What do you mean by Credit card?
A: A credit card is an essential financial tool. It enables its holders to make purchases and pay back the amount later. A bank-approved credit limit will give you a certain amount of purchasing power, which must be repaid on the due date that's mutually decided by both parties: The holder and their bank.
Q: What is the limit on credit cards?
A: This is the maximum amount of money that one can spend on their card. Having a high limit for your credit card will allow you to spend more and help your score in return.
Q: What is the minimum credit score you need to get a credit card?
A: A good guideline would be that if your score falls below 750, then it's best not to apply.
Q: How to apply for a credit card easily?
A: If you're looking for a credit card, the best and easiest way to get one is to apply on our platform. It's easy to compare features and benefits, fees as well as interest rates from different cards before making your final decision.
Q: What is a premium credit card, and what are its advantages?
A: Premium cards offer perks like airport lounge access, concierge service, air accident insurance, etc., as well as substantial annual fees. And of course, not all benefits are included in the fees; international travel comes with several attendant expenses on top of it!
Q: What are the ways to check credit cards?
A: There are many ways to check the credit card balance. One is by checking your monthly statement or logging in and viewing your net banking account online.
Q: May I get a credit card without a job or work?
A: We have a range of credit cards without job requirements. Even if you do not have a job, you are eligible to apply for one with us.
Q: Are credit cards offered with any lounge benefits?
A: Yes, a lot of credit cards come with airport lounge benefits. Some even have international lounge access in airports.