
4 Tips for Choosing the Best Credit Card
With the rise in the popularity of credit cards, competition among card issuers has also increased. As a result, more and more credit card users are turning to their cards for an extended period instead of using them as short-term financial tools. If you’re thinking about applying for your first credit card, take note of these tips before you do so.
Keep an Eye Out for New Card Offers
Many credit card issuers will regularly offer new card users special deals and savings. To keep track of these offers, consider signing up for your card’s email newsletter. You can also check the card issuer’s website or social media accounts for updates on special promotions. If you haven’t yet signed up for your card’s newsletter, do it right away. Credit card companies regularly run special offers, and you don’t want to miss out on any of these deals.

Decide How Much You Need to Borrow and How Often You’ll Repay It
Before you even think about applying for a credit card, be sure to figure out how much you need to borrow and how often you want to repay it. A lot of people get confused about the concept of debt and borrowing. In simple terms, debt is the amount of money you need to borrow to purchase an item, such as a car or a house. You don’t have to repay debt until you sell the item. If you have to pay off the debt, you have to make payments until you do. On the other hand, a credit card is a revolving line of credit. This means that the credit card company loans you the amount you need, and they charge you interest on the amount borrowed. This is how credit cards work. If you don’t repay the credit card debt, the credit card company can take legal action against you.
Factor in the Annual Fee
Another factor to consider when choosing your first credit card is the fee associated with it. Most credit card issuers charge an annual fee for their services. This fee is usually charged as a percentage of the amount you borrow with your card. Fees can range from ₹0 to ₹5000. If you decide to go for a card with an annual fee, make sure you factor this fee into your decision.
Consider a Rewards Card
Another credit card option worth considering is a rewards card. These cards offer consumers perks for every Rupee they spend on the card. Some card issuers even offer cardholders cash back, shopping vouchers, and other perks when they use the card. Depending on your spending habits and how often you use a rewards card, you could end up saving a lot of money using this type of credit card. Several factors should influence your decision to go for a rewards card over a regular cash-back credit card. For example, do you mainly use public transport such as trains, buses and ferries? If so, you could save more using a train or bus card than a cash-back credit card.
Conclusion
Credit cards are a valuable financial asset that can help you establish a positive credit history. However, knowing the best ways to use them and which cards to select are important. If you keep these tips in mind when choosing your first credit card, you’ll be able to make the best financial decision for your needs.