Gone are the days when one carried along a huge bundle of cash when going out shopping. Imagine you wish to buy an item costing somewhere around Rs. 70,000. In such cases, you would probably have to carry an additional bag full of cash.
While some still prefer the cash-payment mode, most individuals these days have adapted to the modern times by using credit cards.
Before diving deep into understanding the benefits of using a credit card, let’s talk a bit about the difference between a credit and a debit card, as the distinction seems to be anonymous to many. credit card, in easy words, can be defined as a mode of transaction that requires the user to pay during the end of a specific period only after he/she has used the allotted amount. A debit card, on the other hand, can be used against the money you already have in your bank account. So, the amount transacted using a debit card is deducted from your bank account.
Now that we know the difference, let’s understand the features you need to look out for when choosing a credit card.
These cards are quite popular among shoppers, as they offer a cash-back of a specific value on every purchase that has been made.
Interest rates Usually, not all providers charge the same interest rates. Note that delayed payments might invite additional penalties.
Some providers offer a specific reward or a gift on your first ever transaction made using the credit card. The rewards are usually in the form of points, which you can later redeem for a gift.
In some cases you may be liable to pay additional charges such as international transaction fees, account-keeping fee, cash advance fees, etc. Find out if the credit card you plan to choose comes bundled with any of these charges. If yes, make sure the charges aren’t too heavy.
Although not known by many, credit cards hold several benefits in additional to its ability to let you spend the amount before you repay the same. For instance, numerous credit-card providers offer discounts on every purchase you make using the card. And of course, you don’t have to wander around with a massive stack of money in your pocket. Listed below are some additional benefits of using a credit card.
Most, if not all, credit cards can be used internationally. These cards allow almost all types of transactions, both online and offline.
As discussed earlier, some credit cards do offer a discount on purchases you make. If not a discount, you are most likely to receive bonus points or rewards on every transaction made. These points can later be redeemed for a gift or an item of your choice, based on the terms set by the provider.
Not many are aware of the fact that some credit cards also allow the users to withdraw cash, which is indeed a feasible option during emergency situations. However, before doing so, it is recommended that you read the terms of usage, as some cards may charge a considerably heavy interest rate on cash withdrawals.
The eligibility criteria
Although the set terms and conditions may vary depending on the provider you choose, the eligibility criteria remains the same across all carriers.
Should be at least 18 years of age
You must have an active source of income, based upon which you’ll be able to pay the credit card bills.
Should hold a good credit history
Must have your own savings account.
Documents to be submitted
Every financing scheme you opt for requires you to submit the necessary documents during the application process, and a credit card isn’t an exception. Below are the documents that are most likely to be requested by the credit-card provider you choose.
Proof of residence – Rent Agreement, Bank Statement, Ration Card, Electricity Bill, Telephone Bill, etc
Identify proof - PAN card, Voter ID card, Driver’s License, Aadhar card or Passport
Age proof – Birth certificate, Voter ID card, Passport, etc
Income proof – last 3 month’s salary slips
Comparison is important
Almost all the banks offer credit cards packed with the most enticing offers. If lucky, you may also win a holiday trip to your favourite destination. HDFC, ICICI, American Express and SBI, Citi bank are currently the most renowned banks when it comes to credit card schemes. Each of them have their own bunch of goodness to offer, and therefore it is highly essential to compare multiple credit cards before you fill up an application form.
However, it may not be humanly possible to walk up to every bank in person and acquire the necessary details. With an intention to make your life easy, CompareRaja now lets you compare credit cards offered by some of the top banks and financial institutions in India. All you need to do is simply, choose your desired provider and compare the offers in store. The process takes not more than a couple of minutes.
For years now, CompareRaja has been reigning as the top online price comparison portal in India. With highly accurate product-comparison engine, the website is able to suggest you the best deals on almost everything from phones to fashion accessories.
With innumerable credit card carriers claiming to be the best, CompareRaja rightly understands the hassle one has to go through while choosing a credit card. Therefore, the website now helps you make the most precise decision on credit card selection.
The latest credit card deals are constantly added up to the website, thereby further adding up to your existing options. So, if you are not currently content with the offer available, come back after a couple of days and you are most likely to find what you have been looking for.
Unlike a decade ago, when applying for a credit card was a hassle, the present times have witnessed the streamlining of the process involved. Thanks to the competitive nature of the credit-card providers who constantly thrive to offer the best service. But, if choosing the right credit-card is a matter of confusion, look around and you’ll surely find CompareRaja by your side.