The sheer volume of credit cards makes you wonder: which are the best credit cards in India? A credit card is a handy financial tool to have at your disposal. You get access to credit, pay off debts, and there’s a reward system of discounts and cashback.
But how do you choose the best credit cards? It is a stressful job, especially if you’ve never had a credit card before.
The good news is that there’s no such thing as a universally ideal credit card. The usefulness of a credit card depends entirely on the credit card user and their lifestyle. So how do you find out if the best credit cards in India are ideal for you? Here’s a breakdown:
How do you choose the best credit card for yourself?
Imagine this: you see your friend using a credit card and want one. But you have never used a credit card before. How do you go about searching for the ideal online credit card? You can start your research with three easy steps before looking for a credit card:
Evaluate your credit report and credit score
The credit report affects your eligibility for a credit card. Apply online to check your credit score before looking for credit cards. It helps you understand your options and credibility as a cardholder. You’re more likely to get credit card approval if your credit score exceeds 740.
Lenders also perform a background check to ensure you can afford a credit card. It includes your total income, payment history, and job position. However, a good credit score expedites the credit card approval process.
Identify which credit cards suit your financial situation
The best credit cards are those that suit your financial needs. Ideally, your credit card should help make your lifestyle easier. You don’t want to add more to your plate because you can’t afford a credit card.
For instance, if you can’t pay your bills within 30 days, consider alternate options like NBFCs. Some NBFCs like ApnaPaisa offer a 45-days interest-free period.
Analyze the best credit card offers
So you’ve searched for the type of credit card that suits you best. Now what? Your goal is to maximize the utility of your credit card. It means you will want to understand what different credit card companies offer. One way to do this is to perform a cost-benefit analysis. Does your ideal credit card justify the cost in the long run? Considering the pros and cons of each card also helps narrow down your choices.
It boils down to one question: how much are you willing to pay for your credit card?
Applying for credit cards online versus offline
You can apply for credit cards online and offline. The offline procedure is less convenient, as it makes a visit mandatory. You can apply for a credit card online in India from anywhere. For instance, you can apply for a credit card at ApnaPaisa with a smartphone and a good connection.
Does applying for a credit card online mean you get instant approval? No, the lender still has to check on your creditworthiness. However, you can get faster approvals for credit cards online.
What do I look for in a credit card?
Few terms that you must understand before you look for a credit card and apply online:
- Credit Limit – The maximum amount you can spend via a credit card. All credit cards have a predetermined credit limit approved by the lender.
- Cash withdrawal fees – Lenders charge a fee for withdrawing cash from ATMs with your credit card.
- Incentives – The rewards you get because of your credit card. It may include lounge access, discounts, cashback, and upgrades to business-class flights.
- Late-payment penalties – Penalties you pay if you miss your credit card payment deadline.
- Annual fees – Lastly, most credit card companies charge a fee annually. It covers the cost of assigning a credit card to the user.
Additionally, the credit card billing cycle also affects your financial plans. It also helps if you have an estimate of the costs and interest rates of your credit card.
What kind of lifestyle do you want to lead?
Lifestyle plays a pivotal role in your credit card application. Remember that a credit card also gives you access to unique rewards. Both your current and aspirational lifestyle must accommodate the credit card. So if you’re a frequent flyer, you may want a card that gives you free lounge access. Or, if you love new dining experiences, opt for a card with food discounts and cashback.
Applying for credit cards is stressful, but the rewards are worth it. Understanding the terms makes it easier to find your ideal credit card. You can also fast-track the process by signing up for a credit card online at ApnaPaisa