The volume of online transactions in India rose by 55.1 percent between 2015-16 and 2019-20. The value of total transactions also soared to Rs.1623.05 lakh crore during this period, the latest report by the Reserve Bank of India revealed. Such data clearly resulted from the initiatives undertaken by the Government of India to make the country cashless in the near future.
In tune with this trend, the demand for payment cards including credit cards is also witnessing an upward trend. However, while the options are diverse when it comes to choosing a credit card, individuals often get baffled on how to choose the best one and the procedure to make a credit card application.
Therefore, before applying for a credit card, individuals need to consider a few factors to avail the option best suited to their financial behavior.
Features of the best credit cards
A credit card can prove to be an immensely beneficial financial tool as it proffers several advantages that cardholders can reap. There are several kinds of cards available in the market like fuel cards, traveler cards, grocery credit cards, etc. to suit the variegated needs of users.
Following are some of the factors that you need to consider before making a credit card application to avail the option best suited to your requirements.
- Assess your requirements
Before applying for a credit card, individuals need to learn about how to use a credit card wisely. The primary step towards it is reviewing the needs of the applicants. For instance, while some use these cards mainly for online shopping, others may utilize them for business purposes. For such instances, they can choose online credit cards and business credit cards, respectively.
- Credit limit
This plays a crucial role in determining the utility of a credit card. There are several factors that influence the credit limit of a card, like monthly income. Nevertheless, adopting some healthy financial practices can help increase a user’s credit card limit. However, in most cases, it depends on the issuer’s discretion.
- Bill payment
Credit card bills can be tricky when it comes to paying them. A little delay in payment can cause a substantial financial setback for the cardholder in the form of interests. Therefore, before making an online credit card application, it is essential to check the bill payment facility, interest-free period, and bill cycle thoroughly.
- Reward program
Another fantastic credit card benefit includes its reward points. Irrespective of the credit card types, cardholders can earn massive benefits in the form of joining points, reward points for purchasing at issuer’s partner brands, and several other grounds. They can also redeem those reward points later.
- Penalty fees and other charges
While credit card makes one of the most dynamic payment tools, it comes with penalty fees and other applicable charges. Such charges are generally levied if one fails to pay the credit card bills within the due date.
Apart from that, credit cards also come with a specific annual fee that individuals need to pay.
- Pre-approved offer
Selected credit cards like Bajaj Finserv RBL Bank SuperCard by Bajaj Finserv come with pre-approved offers that make the credit card application process straightforward and less time-consuming. These offers are available on several financial products like business loans, personal loans,s, and others. You can check your pre-approved offer by submitting your name and contact number.
- Card security
Along with that, before making a credit card application, individuals also need to consider the security of their credit cards. Thereby, while choosing one, they should check if that credit card is equipped with robust security to bypass the threats of cybercrime.
Along with assessing the benefits of a credit card, you should also have a fair idea about the possible reasons why your credit card application can be rejected. One of the primary reasons for the same can be a low credit score.
Knowing the factors beforehand will allow you to qualify for the best suitable credit card for your needs.