Credit card spending in India touched an all-time high in July due to a significant rise in transactions on e-commerce websites. As per the latest Reserve Bank of India data, credit card spending rose by nearly 25 per cent (year-on-year), climbing to nearly Rs 1.5 lakh crore in July this year. Similarly, month-on-month spending also rose by 5 per cent compared to June. At a time when e-commerce transactions are on the rise, causing credit card spending to increase across the country, it has become important to make the right choice while opting for a credit card.
Making the right choice while applying for a credit card will help in saving more. You should also look for a credit card that offers cashback and discounts on spendings.
Scroll down to check some tips that will help you choose the right credit card.
Tips for selecting the right credit card
Research properly: Before finalising a credit card, it is important to find the card issuer that offers favourable terms and conditions along with affordable interest rates, benefits, late payment charges and annual fees. Thus, you should find the right place and then also check all the details.
Begin with a low-limit card: Someone who will be opting for his or her first credit card should always pick a card with a low credit limit. This will help to control your expenses and also build your credit history accordingly.
Check credit score: Before selecting your credit card, it is important to check your credit score and the credit report to determine the range of scores that you fall in. Once you know the range, use the details to fine-tune your search and choose the right card for your needs. A higher credit score will help you get approval for a credit card that offers more benefits.
Decide which type suits your needs: It is very important to decide the type of credit card that will suit your needs. From different offers to credit limits, cardholders may have different requirements. In accordance with this, make the right choice as per your requirements.
Understand your expenses: Another major step in choosing the right credit card is to understand your expenses. In order to make the most of it, one must opt for a card that will suit your spending pattern, lifestyle, and requirements. In this regard, banks offer different cards that are tailored for different needs of various groups of customers.