The concept of having convenient access to a large sum of funds can often terrify a person or even overwhelm them with self-indulgence. A credit card, for that matter, is the perfect tool that allows individuals to purchase products of large sums on borrowed funds from the bank or financial lender. However, at the same time, the user will also need to repay back the borrowed funds, albeit with an added interest after a particular period. However, with the right financial responsibility and the ideal credit card, you will be able to make financial expenditures that are financially viable to you. While the financial responsibility lies on your habits and decisions, choosing the right needs careful consideration, especially with all the factors offered by the lender. Here are some of the important factors you should take into consideration when choosing the best credit card in India:
Interest rate If not the most important, is the most imperative factor that needs to be taken into account when opting for a credit card. This interest rate, also known as the annual percentage rate in the terms, is the rate of interest charged to the credit card on an annual basis. This charge is calculated on a part or full portion of the unpaid balance. Before applying for a credit card, always check the interest rate offers along with the possibility of hidden costing. Credit card limit The credit card limit on a card determines the maximum amount the lender will let you borrow on a single card. This limit is decided based on your income, assets, and current credit score. When applying for this credit card, you must ensure that your limit isn’t too high, as exceeding the limit can incur a penalty for extra expenditures. Fees and penalties
A credit card comes with a variety of fees and penalties, which differ on the lender. Some of the fees that are included with a standard credit card include annual fees, joining fees and late payment amongst many others. You should also be aware of hidden fees, by diligently going through the terms before applying for it. Incentives and rewards Apart from other factors of a to consider, rewards and incentives are two factors you can look forward to. The best credit card in India do come with plenty of these programs, but it depends on the lender that is providing you with the credit card. The best way to make the most of these incentives and rewards is to opt for a that matches your lifestyle. You can even ask your lender for an upgrade after a certain period.