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HomeFinanceSmart Ways of Choosing a Credit Card that Suits your Needs

Smart Ways of Choosing a Credit Card that Suits your Needs

Consumerism in India has seen a steady rise since the advent of foreign direct investment. Not only has it brought numerous global companies to this country but it has also increased the needs of the citizens.

The appliance and consumer electronics is the largest sector among buyers. It is all set to double by 2020, growing at an average CAGR of 9% since 2017, as estimated by IBEF.   Government initiatives like Make in India have also contributed significantly to this sector.

The middle-class sector comprises a substantial portion of the buyers, the majority of who opt for external financing to make purchases conveniently. Lending companies, therefore, offer customised products to suit their needs and requirements aptly. Credit cards are one such financial product that makes purchases beneficial and affordable for users.

If you want to apply for a credit card, you first need to know how to choose the right one. Card issuing companies create these instruments based on specific financing requirements of individuals. Hence, going for the right card makes your regular expenses cheaper, brings you high reward points, and lowers your future expenditures.

Here are some of the ways to choose a credit card according to your needs:

  1. For your travel needs

Go for travel credit cards if you are a frequent traveller. These cards can either be co-branded or standalone.

  • Co-branded cards are usually backed by an airline company. Buying tickets of that specific airline enable you to enjoy discounts and travel miles. These travel miles are redeemable to avail discounts on future air ticket purchases. Also, you get the option to convert these miles into reward points.
  • Standalone travel cards allow you to earn miles or reward points when you make a transaction from a specified airline or travel & tourism website.

Not only air tickets but travel credit cards also provide rewards on hotel bookings and offer other features like complimentary airport lounge accesses.

The Bajaj Finserv RBL Bank SuperCard offers up to 8 such accesses. Two of the many advantages of the Credit Card are ATM cash withdrawal with 0% interest on repayment up to 50 days and emergency personal loan for up to 90 days with zero interest.

  • For your fuel needs

Financial institutions provide customised credit cards to help you lower your high fuel expenses. The fuel credit cards are usually co-branded as card issuers partner with fuel companies to offer such benefits.

Make sure you know how to choose the right credit card before you opt for any one of these.

You earn high reward points on using fuel credit cards at the partner pump stations. These points are redeemable to purchase fuel for free. Such credit cards also provide cashback which is shown as a discount on your monthly statement.

Other than the above, you also get a fuel surcharge waiver. Fuel credit cards either eliminate the need to pay this surcharge entirely or partially. The Bajaj Finserv RBL Bank SuperCard lets you save up to Rs. 200 per month on fuel surcharge.

Bajaj Finserv being a reputed NBFC also brings pre-approved offers to make the process more simplified and less time-taking. Pre-approved offers are available for credit cards, personal loans, home loans, business loans, and several other financial products and services. Check your pre-approved offer by providing only your name and phone number.

  • For credit score improvement

Credit score determines your creditworthiness. The higher your CIBIL score, the more eligible you are to avail a credit card or an unsecured loan. Here also, you have to know how to choose the right credit card if you want to increase your credit score.

With a higher credit score, you can avail the best features and benefits on an unsecured credit card. However, if the score is sufficiently low, you can go for a secured credit card against a fixed deposit and increase your CIBIL score. Its credit limit will usually be a discounted amount of your FD.

  • For entertainment

You can also avail credit cards if you are an avid movie buff. Entertainment credit cards help you make your movie ticket purchases cheaper. The advantages of the credit card are either free movie tickets every month or discounts on them, both from a specified online retailer.

  • For retail purchases

Your monthly purchases can also become affordable if you possess a retail credit card. These credit cards bring you attractive rewards when you shop from a particular retailer or departmental store. The rewards you receive may also be higher in case of online purchases.

Do ensure that you know how to choose the right credit card before you pick one. Also, check the joining fee, annual fee, rate of interest, and other charges before you apply.

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