Credit cards have emerged as a very popular financial tool in the current lifestyle as the trend of online shopping has gained momentum. This is to say that credit cards are used extensively for online and offline store payments. And through this, the person is also able to take advantage of various 0% financial schemes. So if you are thinking of getting a credit card for yourself, then here we are mentioning some things that any person must know before applying for a credit card. Before taking a credit card, a person must pay attention to the things mentioned in this article so that he does not leave his hard-earned money for lack of knowledge. taking a credit card.
Credit cards also known as plastic money have become quite popular over the years. The reason for their popularity has been online shopping and various offers offered by vendors on credit card payments. Apart from this, the government has also been trying to promote cashless transactions in the country. Since a credit card is a tool through which a person can make purchases without having money at the time of shopping in the account. And when its bill comes, the bank can pay it, in addition to every purchase a person also gets a reward. This is the reason that currently everyone thinks of getting a credit card. If you are thinking of getting a credit card too, then keep in mind the following points.
1. Why do you need a credit card?
The first thing a person has to keep in mind before taking a credit card is that the person must ask themselves a question as to why they need a credit card? Because different credit cards are also designed by banks for different usage. Like if a person travels frequently and needs to book a flight ticket again and again. So he can ask for some such credit cards from the bank, which have more offers and rewards on travel. It is intended to say that a person should know first when he may need to use a credit card. Does he want to do all his transactions through credit cards?
So that he does not need to keep the cash. Or he will use a credit card only when an offer comes in an online or offline retail store. Or is the person trying to get a credit card for an emergency? That is a situation where the person has no money in his account and can buy any necessary goods. It is meant to say that the first thing a person has to take care of is why he needs a credit card? Because only then will he be able to choose the appropriate credit card.
2. Know the interest rate on credit card:
The other thing to note before taking a credit card is the interest rate charged on the card. However, such people who are committed to the timely payment of arrears, it does not matter what the interest rate is. People who plan to repay the outstanding balance before the payment date should not be worried about credit card interest rates. But if you are planning to pay the minimum amount every month, then you must know about the interest rate charged on it.
3. Learn about various fees and penalties:
However, depending on its usage on credit cards, many types of charges and penalties can be levied. But the most important charge is the annual fee on the credit card. Therefore, a person must know about its annual fee before taking a credit card from any bank. Although many banks offer cards even without an annual fee, most banks give this fee concession for the first 1 year or two years. So take a credit card from a bank that is not charging an annual fee for the first one or two years. Apart from this, a person must also know about the balance transfer fee, foreign transaction fee, late payment fee, etc.
4. Know a credit card credit limit:
Keep in mind that if you are taking a credit card so that you can make all your possible purchases through a credit card, then you will need a credit card that has a higher credit limit. Apart from this, if you are thinking of using it on occasional occasions, then your work will continue even if there is a low limit. These are some things that a person should think about before taking a credit card. Although it is also true that the credit limit is fixed keeping in mind the credit profile, earnings, etc. of the person. Credit: A person who has good earning and credit profile will also have a higher credit limit of his card. And in the opposite situation, even if you want, the person will be unable to increase his credit limit.
5. Learn about the Reward Program:
If the sole purpose of a person to get a credit card from the bank is to take advantage of various discounts and offers, then the person has to ensure that the card he/she is choosing is perfectly fit for him/her. For example: Suppose the person receiving the credit card is fond of watching the film and never travels by flight. And he gets such a card from the bank which has many offers for flight travel but not for watching movies. So in that case, that card is of no importance to that person. So before taking a credit card one must also think about the rewards program.
6. Will you be able to pay on time:
Generally, the rate of interest charged on a credit card is very high, so before taking a credit card, please ask yourself a question, will you be able to pay its bill on time? If you are able to do this then it is okay otherwise you should abandon the idea of taking a credit card. Because delayed payment or non-payment has a direct effect on the credit profile of the person. And due to its negative effect, any bank or financial person can refuse to give loan to that particular person.
Keep in mind that credit card is not a means of earning free or shopping for free. Rather it is a facility provided by the bank through which a person can pay the seller even if there is no money in his own account. But if a person does not use it properly then it can become a reason for the bank to earn from the person. So be careful while using it and paying bills.
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