In this article we will go through What question you should ask yourself before choosing first credit card. You’ve probably seen your parents, family, and friends use them. Every wallet nowadays has a credit card, which can be used for both ordinary transactions and online purchases.
What are your feelings on joining the club? What question you should ask yourself before choosing first credit card
- How do I select the appropriate card?
Do you want to know what the greatest credit card is for a first-time user? Here are some starter questions for you! Is there anything you would not hesitate to spend money on on a monthly basis? Is it possible that it’s fuel? Your employment may demand you to travel within the city. A half-month trip takes you from local to foreign destinations. You like to go shopping and indulge yourself.
Whatever lifestyle you lead, there is a credit card that will reward you for spending money. Air miles, reward points, and free fuel are all examples of rewards. Choose the category that offers the most rewards and privileges according on your spending habits.
- Is there a joining or annual charge for the card?
All credit cards do not require a joining or yearly fee. If there is a price, make sure there is enough incentive in the form of air miles, free fuel, reward points, and so on. Banks are likely to levy membership fees in the first year, followed by annual costs. “Is it truly worth it?” is the big question. Before making your decision, carefully compare the charge against the benefits and privileges.
- What is the credit card limit on your card?
Your bank determines the maximum amount you can borrow based on your credit score. In truth, it differs from one person to the next. Banks may raise your credit limit if you have a high spending habit and pay on time. Make sure you don’t go over your credit limit because you’ll be charged if you do.
- Do you have a cash advance limit?
In an emergency, you can use this capability to withdraw cash from an ATM using your credit card. Furthermore, the bank limits your withdrawals; often, the bank’s restriction is less than your credit limit. This should only be utilised as a last resort because the fees and interest rates on cash advances can be exorbitant.
- What happens if you merely pay the bare minimum?
To prevent interest charges, pay off the entire balance on your card before the due date. Paying merely the minimum amount, on the other hand, will result in interest being owed on your whole credit line. As a result, it is preferable to pay off your outstanding balance during the interest-free period.
- A decent CIBIL/credit score is required.
Your credit score, according to Credit Information Bureau Limited, can range between 300 and 900, indicating how creditworthy you are. When you use a credit instrument (such as a credit card, personal loan, or house loan), your credit score is determined. Your credit card and loan payment records are used to generate your CIBIL score. A higher score means you are more creditworthy.
Banks extensively consider your CIBIL score when making a personal loan or a property loan. A person’s credit score can even influence the interest rate that is offered to him or her. You should definitely keep an eye on your credit score!
A lot of individuals use credit cards because they are secure. They buy both online and offline and enjoy the ease!” How about you?
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