It can be intimidating to apply for your first credit card. After all, there are hundreds of credit cards on the market, as well as several horrifying stories about how they’ve been misused. Credit cards, on the other hand, are powerful financial tools that may help you not only create a great credit history, but also benefit you in a variety of ways if utilised wisely. You may be mistaken if you believe a credit card is merely another form of payment. If you keep clearing your dues in full on time to avoid interest charges and if you don’t have to pay a membership fee for the card, smart and disciplined credit card usage could help you save more on your spends and enrich your living experiences for free.

To maximise the value of your card expenditures, choose a credit card with advantages that relate to your individual spending patterns and budget. So, if you’re thinking about getting a credit card, here are a few things to consider while you weigh your options. Credit card debt can be destructive debt that can devastate your financial situation. So it is wise to know these five things before applying for a credit card:

Credit cards come in handy when it comes to dealing with last-minute finances. However, it’s never a good idea to spend recklessly with your credit card because it’s one of the quickest ways to get into debt. If not used judiciously, they can lead to amassing debts. While credit cards can be useful, they frequently come with a slew of fees that can quickly build up if you skip a payment, go over your credit limit, or do anything other than make regular purchases.

When you apply for a credit card, you must agree to a number of terms and conditions, and if your application is granted, you will receive a lengthy cardholder agreement in the mail. These documents detail all of the costs that may be incurred as a result of using your credit card.

It’s critical to be informed of the various fees that may apply so that you can limit or avoid them entirely. Here are a few tips to keep in mind when your apply credit card online,

Annual/Maintenance charges of the credit card

Most credit card have a nominal yearly or annual fee of ₹500 to ₹2000. Depending on your credit limit and the type of credit card. While some cards offer to waive off the annual charges for the first year. It can helpful to read the fine print while credit card application. However, missing out on payment of your credit card can lead to unnecessary penalty charges that can easily be avoided with timely payment of credit card.

Read Also – How You Can Avoid Credit Card Fees

The credit card limit

The credit limit is the maximum amount of money that can be borrowed. If your credit card’s credit limit is ₹30,000. You can only use it to pay bills or buy things up to that amount. You can utilise it even in minor breakups or when your credit card company isn’t involved. As a result, when you receive a new credit card, this becomes a key consideration for determining your credit limit. It is always advised to avoid using a credit card with a large credit limit. However, one should always set their credit limit based on their needs.

Know your perks

Each credit card comes with its set of perks. Credit card issuers are launching new rewards programmes to entice more people to use their cards. The reward points on offer are quite appealing and solely benefit users. Reward points are awarded based on the number of times the card is used and the amount of money spent. The reward point you earn can be redeemed on your next loan, lowering your initial borrowing costs. Various credit card issuers give reward points for various purposes; some offer them for shopping, while others offer them for travel and dining. So, while choosing a credit card, think about your needs first, and then about the rewards points available.

One of the popular picks is the Bajaj Finserv RBL credit card. Hosting many benefits such as emergency cash withdrawal at no interest for up to 50 days, instant loan on credit limit. Reward points on shopping, easy cashless transactions. Quick application and management with the Bajaj Finserv app.

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