As per research, the credit card market is expected to grow at a CAGR of 25% between 2020 and 2025.
Financial institutions and credit card companies are contributing to this growth by offering more features and encouraging individuals to apply for a credit card. Even though these features are highly lucrative, it becomes challenging for customers to pick the right product.
Hence, they should consider a few pointers to choosing the correct credit card –
Regular expenses
Individuals should first check their regular expenses. Credit cards are usually designed to suit specific expenses of a cardholder.
There are cards for online shopping. These offer benefits when cardholder shops from all or specific e-commerce platforms.
Similarly, there are also credit cards for grocery shopping. These cards deliver rewards and benefits when customers shop from particular departmental stores.
Also Read: Factors that can ensure credit card approval
Reward points
Reward points are usually offered on all transactions. However, cardholders may earn high points for certain transactions (like online shopping and grocery), which can be two or three times compared to other spending.
Individuals will also be able to earn reward points when opting for a credit card or when crossing a spending milestone.
Joining fee and annual fee
While the joining fee is a one-time charge, customers also have to pay an annual fee. Credit cards with more benefits have higher charges. However, there are cards that come with zero joining and annual fees, but require applicants to have a high income to be eligible.
Other benefits
Individuals should also consider other benefits like fuel surcharge waiver, offers on movie tickets, complimentary airport lounge accesses, etc. Some credit cards like the Bajaj Finserv RBL Bank SuperCard also provide industry-first features.
Individuals should compare all of the pointers mentioned above before applying for a credit card. They also need to use the same responsibly to improve their credit score.
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