Credit card companies are introducing new technologies to enhance the experience of its users. With such enhancements, the total number of credit cards in operation was calculated to be 46.1 million in February 2019 with an addition of 0.89 million payment cards. The total production of a credit card between February 2018 and February 2019 was estimated to be 9.13 million.
, the total number of credit cards in operation was calculated to be 46.1 million in February 2019 with an addition of 0.89 million payment cards. The total production of a credit card between February 2018 and February 2019 was estimated to be 9.13 million.
Choosing the best credit card in India can be a difficult task owing to its variety and features. Before you apply for a credit card, there are certain points that you should keep in mind, some of which are given below.
- Grace period
The credit card bill consists of two dates – the grace period and payment due date. The total time within which you are required to pay your bill is 30 days with an additional 20 days. Let us understand the billing period and grace period with an example.
- Suppose your bill generation date is 11th September.
- Your payment due date will be 20 days- 1st October.
- As per your billing cycle, the next bill generation date will be 11th October.
This implies that for transactions after 11th September you can enjoy 30 days till your next bill generation date that is 11th October along with an additional 20 days (31st October) as a grace period.
In simpler words, the payment for transactions made using your credit card after 11th of September should be made within 31st October (you get to enjoy 50 days within which you will have to make your payment.)
- Interest rate
The best credit card in India offers you with minimal interest rates. Your credit card issuer will charge interest on your purchases in case you have carried forward a balance from the previous month. Thus, it is important for you to pay your credit card bills each month. Hence it is crucial that you know how to read your credit card statements correctly and look out for these charges on your statement.
- Reward points
Against specific transactions, you can earn a bonus in the form of reward points. You can redeem these reward points at the time of making new purchases to reduce your credit card bill.
Credit cards like the Bajaj credit card also provide first time users with a welcome bonus along with cashback and other rewards to reduce the burden on your pocket.
- Credit utilisation
Using the credit card within 60% of the credit card limit helps you increase your CIBIL score. Your credit utilisation ratio is the amount of credit used by you divided by the amount that you can use. Also, another way you can use a credit card to improve your credit score is by refraining from closing your credit card account if you have multiple cards. Closing the account will increase the utilisation ratio and affect your credit score.
While you choose the perfect credit card for you, look out for the below-mentioned features, such as –
- Balance transfer facility
You can use this facility to transfer your outstanding balance from one credit card to another with lower interest rates. Various financial institutions and NBFCs offer online balance transfer facility using which you can reduce your debt.
- ATM withdrawal
Credit cards like the Bajaj credit card offer you with ATM facility at 0% interest for up to 50 days. You can withdraw cash to meet emergencies and cash crunches.
- Emergency loan
Various financial institutions and NBFCs offer emergency loan facilities at an attractive interest rate. The Bajaj Finserv RBL Bank SuperCard is one such credit card with which you can avail interest-free advances for up to 90 days. They also provide ATM withdrawal, online account access, balance transfer, etc.
This NBFC also brings you pre-approved offers which help you reduce the hassle of the application process. These offers are available on multiple financial products including credit cards, home loans, business loans, personal loans, etc. You can check your pre-approved offer on your credit card by sharing minimal details like your name and phone number.
Apart from the above, while you choose the best credit card in India lookout for other facilities like EMI conversions, the easy application process, relaxed eligibility criteria, minimal documentation process, etc. Also look out for their security system to avoid cyber crimes and threats.