Credit Card Comparison: How to Choose the Best One for Your Needs

Credit cards are a popular mode of transaction owing to the convenience it offers. In addition, they also get access to multiple offers regarding online and offline shopping. Many banks and NBFCs are providing credit cards nowadays. They all come with different perks.  However, the real conundrum starts when you plan to get one. If you too are struggling to find out the best card, this blog is going to help you. Here, you will have Top 7 tips for finding the best credit card.

  1. Reviewing the Additional Charges

If you are applying for a credit card, then you must know about charges on it. They include – 

  • Joining fees: The provider imposes these charges when you apply for a new card.
  • Annual/renewal fees: Annual or renewal fees are the charges that you need to bear every year to continue the services.
  • Late fees: This charge is only applicable if you miss the payment. Usually, after the payment due date, when you complete the payment, this fee will be added to your debt, and then you need to pay the whole amount.
  • Cash advance fees: A cash advance fee is the charge you need to pay when you withdraw cash from ATMs using this payment card.

Apart from these, there are other charges applicable to a credit card comparison  that you need to keep in mind before applying for a credit card. It will help you to avoid paying extra.

  1. Check the reward point system

Once you have reviewed the additional charges, then move to check the reward point system. Here, you need to evaluate all the details, like how many reward points you can get on each transaction, what segments offer better points, etc. Moreover, you need to see if purchasing any particular product or service gets you accelerated reward points and whether that aligns with your requirements or not.

Besides that, you need to see the expiry date of these points and how and where you can redeem them to maximise your benefits.

  1. Available facilities and offers on the credit card 

Before choosing your preferred credit card, thoroughly examine all the facilities and offers that can be availed on the credit card. For instance, if you are a frequent traveller, then does your credit card provide additional benefits for air and train ticket booking, hotel booking, etc.? There are specific credit cards that extend a hoard of additional benefits that work in your favour.

Along with this, credit card details issuers often have co-branded credit cards. It means they have tie-ups with various brands, and shopping from them will enable them to get better deals.

  1. Check out the credit limit 

Besides all the offers, you need to check the credit limit of a particular card before applying. Now, a point to note here is that this limit varies depending on several factors.

But when you are applying for the first time, contact the representative or visit the website to know about the limit. 

  1. Check the billing cycle and payment due date

The next point to review here is the billing cycle and payment due date. In terms of the usage of a credit card, knowing these two terms are significant. The billing cycle refers to the period between two billing dates, and now, this date will vary from one credit card company to another.

Another point to check here is the payment due date.

This date refers to the last date of the 30 to 45-day cycle, where you don’t need to pay any interest on the outstanding amount. Similar to the billing cycle, this date will also alter as per the choice of the credit card provider.

  1. Note the eligibility parameters and documentation

Probably one of the most vital points to review in this process is the eligibility parameters and the documentation. Since your credit card application will depend on whether you meet these criteria and submit the papers on time, you need to be extra careful in this regard.

Having said that, the particulars of the eligibility criteria and documentation are also specific to credit card issuers. So, head over to the official portal of each credit card provider and review these pointers before applying.

  1. Review the fine print of the credit card

Reading the fine print of the credit card is also necessary while looking for the ideal one. You will easily find the terms and conditions on the website of the provider. 

Summing it up

Applying for a credit card is not a hassle anymore, especially with the availability of the online application process. However, that does not mean you should apply for the one you get immediately. Instead, you can keep the mentioned above in mind and compare the credit cards in the market for what they offer and then decide.

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