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What Should one Check for in a Credit Card?

Decided to go in for a credit card? But do not know how to select? The explosion of cards in the market would simply confusion in the procedure of choosing. You can, of course, choose to move with whatever comes your way, or whatever your friend recommends, but if you at least want a sense of some of the tips and tricks that you could check to get a better card. Go Ahead

a) Go through the joining fee and annual fee

normally, a card with a higher annual fee enjoys more benefits like higher credit limit, higher accident insurance cover, accessibility to airport lounges, travel discounts etc. Or at least this used to be the case. With cut-throat competition between the card issuing banks, players are ready to waive joining fees and also one-year membership fees for anyone. Grab these offers, or negotiate this for yourself.

b) Move on the Add-on card fee:

If you are interested in buying add-on cards for your children, spouse or friend, ask for the add-on card fee. Remember that you will be settling the bills on the add-on card that you so movingly gift to someone dear to you - the statement will come to you, and the responsibility for payment is yours (as far as the credit card company is concerned.

c) Interest rate:

Remember, while the upfront one off fees are bread and butter for the credit card company, this is the jam! If you're the kind who forgets to pay on time, or likes to live it up and live off credit, the interest rate would be of supreme importance. Most credit card companies charge anywhere between 2% to 3 % per month.

It is always worthwhile to pay off the entire amount on outstanding date, or, if you have a large bank balance, look for card companies that provide the transfer balance facility. The balance transfer rate is lower for a certain period and then the normal rates apply.

d) Is it a Global card or what?

Nowadays this could be useful to you if you are an overseas traveler. A Global card can be used for paying expenses in foreign currency as you use a credit card to pay in rupees. Nowadays, a Global card is being issued at the same cost as for a like domestic one. It is better to have a global card, especially if there is no premium attached.

e) Lost card liability :

More Card issuers mention in the brochures that lost card liability is Rs 1000.you should careful in this, that is actually AFTER it is report to the Bank. The liability is in reality is unlimited before reporting (in cases like this, you would actually thank the credit limit because though the liability is unlimited - the ceiling should logically be your credit limit, and the outlets accepting your stolen card should actually check that you (or the person who stole your card) haven’t exceeded your credit limit).Avoid banks that makes you liable for card misuse for a single minute after reporting it.

f) Is immediate cash withdrawal possible :

Check out if the Bank has any ATMs near your house or workplace? This surely helps in times of emergency.

g) We can be in the free credit period :

The days of credit one gets depends on the statement date and the date of transaction. On an usual, you could assume you'd get around 20 days of free credit. though, if you buy just after the statement date, you could end up getting up to 50 days of credit. Look for cards which you are using which give you the highest free credit period.

h) You have a Helpline :

A 24-hour Helpline service from the Card Company helps the cardholders throughout the non-banking hours. Reporting of theft, checking of available credit limit and some other enquiries can be made by the cardholder. In the end, like everything else in life, the card you want is really matters to you - what matters the most to you - credit, reach, the freebees, international reach or a combination of parameters. Use our card category on the left bar to simply list out the names of the cards, or choose by bank name and see the cards they offer.

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