In the 21st century, credit and debit cards have replaced cash. The sentence, “I do not have cash,” comes as no surprise to people in modern society. The cards are easier to carry than cash, and most importantly, they help users pay later for items they need now. For many people, credit cards are the most user-friendly option during a cash crunch, more so, when the economy is still struggling to come out of the Pandemic woes. Today, credit cards are your best option to regulate any cash flow issues that you might be facing.
It makes little sense to liquidate your investment and savings to meet short term requirements Most cards have at least a month’s deferral on your billing cycle making the payment easier.
Having said that, it’s important to select the best option for your needs as the financial market has a wide variety to select from.
Below is a list of 5 important things that you must consider:
- Annual Fees
Most of the credit cards have an annual fee associated with them, whereas others have zero annual fees component. You must check this factor upfront so that you are aware of what the card would cost you. RBL bank is offering lifetime free credit card to selected few savings account customers.
- Interest Rates
Certain preferred credit cards offer very competitive interest rates in case you need to withdraw cash or you wish to defer your bill payment. For instance –RBL Bank has a credit card that offers withdrawal of cash anywhere 24*7.
Many banks offer credit cards with extremely competitive interest rates in case of a deferral on your payment. Hence, it is advisable to check the interest rate, compare it to the market offers, and accordingly choose a credit card that offers the lowest interest rates
- Rewards and Offers
Financial Institutions such as banks have a wide variety of credit cards suited for every need. For example – RBL Bank offers 40+ credit card varieties ranging from rewards on movies, groceries, medicines, sports, apparel, lounge access, travel, fuel, etc.
Earning rewards also depends on the kind of spending that you do. Thus, you must understand what kind of expenditure you have, how much you could use your card, and the kind of rewards and benefits you wish to avail.
- Credit Limits
The credit limit is the amount of financial exposure that the credit card company is willing to take on you. This would depend on your annual income, financial worthiness, credit CIBIL score, and other factors.
Some financial institutions are more aggressive and customer-focused than others. For example, some government banks offer very low credit limits whereas private banks are more likely to offer better and higher credit limits.
This would essentially mean that you can even make bulk, large purchases on your card without it being declined.
- Customer Service
This is the most important and essential factor while choosing your credit card. A prompt and dedicated customer support team would greatly impact your experience.
A dependable, efficient, and effective client support team would mean that you can reach out to the bank or financial institution easily, without having to wait for eternity on the interactive voice response systems (IVRS).
In conclusion, you do not worry about running out of money when you need to pay for an essential or sudden expense. Banks offer a wide range of rewards to ensure your spending earns you discounts and offers. However, you must consider and evaluate a card to have a rewarding experience.