Active Stocks
Fri Apr 12 2024 15:57:45
  1. Tata Steel share price
  2. 163.50 -1.00%
  1. NTPC share price
  2. 362.00 -0.32%
  1. ITC share price
  2. 430.10 -1.56%
  1. HDFC Bank share price
  2. 1,518.90 -1.10%
  1. State Bank Of India share price
  2. 766.75 -1.57%
Business News/ Brand Stories / Navigating Credit Cards: A Comprehensive Guide to Choosing the Right Card for You
BackBack
BRAND POST

Navigating Credit Cards: A Comprehensive Guide to Choosing the Right Card for You

Your credit score will be a good indicator in determining what kind of credit card you should apply for.

Navigating Credit Cards: A Comprehensive Guide to Choosing the Right Card for YouPremium
Navigating Credit Cards: A Comprehensive Guide to Choosing the Right Card for You

Credit cards are the perfect tool for individuals who want a little increased purchasing power. It provides a little extra cushion and flexibility while making purchases. Furthermore, credit cards also contain numerous rewards, such as cashback, travel miles, and points. Individuals also have UPI credit card services if they own a credit since adding details to a UPI app is extremely simple. It doesn’t end there, making reservations, paying bills, booking hotels, and other such transactions are extremely easy with a credit card.

Finally, individuals can boost their credit score and history by using their credit wisely. 

As you can see, there are many reasons to own a credit card. It can help manage your finances, boost purchasing power, and even allow UPI payments. However, how do you apply for credit card, which is best for you, given that so many options are available? Here are some things you can consider looking out for to ensure you choose the right one.

Your Credit Score 

Your credit score will be a good indicator in determining what kind of credit card you should apply for. If the score is average, applying for a card with a high score requirement might not be ideal. Not only is your application likely to be rejected, but it will also impact your credit score. So, you should pick the most suitable credit card for your current credit score. If you apply for a card in your score range, you can use it to improve your score. After you improve your score, you can apply for a new credit card that may be more to your liking.

Credit Score Ranges:    

  • Above 800: Exceptional 
  • 740-799: Very Good
  • 670-739: Good 
  • 580-669: Fair 
  • 579 and Lower: Poor

Type of Credit Card 

The best way to choose the right credit card type is to assess your biggest expenses. Once you know in which areas you are a big spender, you can opt for a reward card that is most rewarding in those categories. These rewards may be in the form of discounts, rewards, cash back, and more. So, keep an eye out for what suits you most. Here are some common types of credit cards:

  • Cash-back Cards: These cards provide cash-back incentives on regular purchases. Some cards provide returns on all purchases, while others only offer rewards for specific categories.
  • General travel rewards: These credit cards offer choice travels, rewards, handsome perks and bonuses, and flexibility to choose an airline.
  • Airline-branded credit cards: You earn rewards when transacting with a specific airline through your credit card. If you have a preferred airline, this can be a wise decision. These are only a few of the most popular ones available to individuals. Take some time to look at other categories.

Compare Credit Cards 

Once you have decided on the type of credit card that suits you best, it is time to compare different competitors. Many lenders offer a variety of benefits to individuals who choose to join them. Here are some of the top things to look out for when comparing different credit card offers:

  • Is there a welcome bonus or offer? 
  • What is the purchase APR? 
  • How much is the annual fee? 
  • Is there an additional fee for foreign transactions? 
  • How much is the balance transfer fee? 

Remember that life is unpredictable, and you always want to be prepared for a financial or medical emergency. Choosing the right credit card type can help you manage these events better. If you want to be prepared for any expected expenses that may come up, choose the credit card with the lowest APR. A card with a low APR may allow you to float your balance for a few months if you don’t want to make immediate credit card payments.

CONCLUSION

Opting for a credit card is wise in this day and age. It offers UPI transaction limit on credit card services, rewards, and cashback, increases purchasing power, helps with emergencies, and more. Follow the tips in this article and do thorough research to ensure you make the right choice before you apply credit card.

Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same. The article does not constitute financial advice.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 27 Feb 2024, 05:58 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App