Tips On Selecting A Credit Card In India

Credit cards are different from debit cards in that they are not a part of money which is already ours. It is usually draw against future probable income. The average family has many needs in today’s times hence credit cards have become a tool of immense utility in order to satisfy various essential as well as non essential needs.

A few tips for making the right choice the very first time or rectifying an erroneous choice of credit card maybe as follows:

i.) Credit Card – Cash Back:
   
These type of cards are still at a budding stage in India. For instance in the Kotak Trump Gold credit card while 5% cash back is available, there is a minimum spending eligibility requirement of  Rs. 1000/- per transaction. The cash back on the card is available only up to Rs. 600/- per billing cycle for movies and dining.

ii.) Credit Rating:
     
One should refrain from using cash or debit cards too often as that will have a direct impact on savings.
     
The ceiling or credit card limit in India for the credit card spending is there, however it must be in accordance with money which will be available next month when the payment due date arrives. Thus higher credit card usage would also translate in to a better credit rating.

iii.) Co Branded credit cards - Beware:

It could be the Jet Airways ICICI bank card, SBI Railway card or HSBC Make my trip credit card – cards which have brand partners are not as beneficial since reward points are primarily available for the associate brand purchases. This is more an attempt to garner brand loyalty for the associate brand than give any significant returns to the customers.

iv.) Timely Payment:

One must be careful to make the payment in full in a timely fashion, else the amount saved via cash backs or reward points get overwhelmed by the excessive interest charges.

v.) Sundries:

One should also carefully compare which cards offer better sign up bonuses. The limits on the frequent flier miles when flights are booked through the cards also vary; hence the same should be carefully compared as well. There are also various cards which offer travel insurance and emergency assistance. Credit card online payments often accompany rewards as well.

However, one needs to be very careful when deciding how to choose a credit card because of the old adage of how appearances can prove deceitful.

Hence, the choice of the right credit cards in India is quite essential even when choosing one from the very best credit card company in India as one may prove according to your needs; else it will simply result in erosion of existing savings.

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