5 Factors to Tick Off Before Picking a Credit Card


Carrying bundles of cash when you are going shopping is inconvenient and unsafe. Instead, you can carry a credit card, which can be used for all kinds of transactions. If you need cash for certain payments, you can simply withdraw from an ATM using your credit card. It is particularly useful to have this plastic money handy in case of emergencies, since most places from malls to hospitals accept it as a mode of payment.

Before applying for a credit card, it is a good idea to check all its features and charges. There may be several benefits that you may not know, like zero fees on requesting a duplicate credit card statement. So, here are 5 things to check before making a choice.

#1 – Low Interest Charges

If you are unable to pay back the amount you had spent using the card in the previous month, a certain rate of interest is charged to you. So, choose a card with a low interest rate. Even then, it is good to pay back the amount before the due date. Here are some tips to do that: 

  • Try to keep the credit card bill within your monthly budget, so that you’re sure to have the money on the due date. Also, planning your monthly expenses is a good habit to inculcate. 
  • Be aware of the due date and market a day or two before that date on your calendar. You can set up a reminder on your online calendar or phone. This way, you will make the payment within the interest-free grace period and never incur interest charges.
  • Sometimes, you may not be able to repay before the due date. Ensure to pay the minimum amount and then plan when you can repay the balance. If you have chosen an issuer with a low interest rate, it will become easier to repay the complete amount.

#2 – Super Credit Card Rewards 

Pick a credit card that offers reward points. So, every time you use the card to buy something, you earn rewards. These may include amazing gift vouchers or discounts and offers at various partner merchants. 

Some credit cards offer the following extra features for the best experience of earning rewards:

  • The reward points do not have a maximum limit.
  • You’re offered up to 10X reward points.
  • The credit points do not expire. So, you don’t need to use them immediately. 
  • Limited period offers or discounts. 
  • No redemption fees are charged for using the rewards. 
  • More reward points are offered on online payments than offline transactions. So, consider shifting your purchases to online shopping to stay safe at home and earn more rewards! 

#3 – No Cash Advance Fee

When a credit card is used to withdraw cash, a cash advance fee is usually charged as a percentage of the withdrawn amount. You can avoid this by choosing a credit card that offers interest-free cash withdrawals. 

#4 – Zero Annual Maintenance Charges

Annual maintenance fees are often charged to keep the card account open. You can avoid these charges by picking a card with zero annual fees. Even better, get a lifetime free credit card.

#5 – Zero Over-the-Limit Charges

Over-the-limit fees are charged on card-based transactions beyond the assigned credit limit. You can choose a credit card with zero over-the-limit fees to avoid such charges. 

Read the terms and conditions of your credit card document carefully when applying for it and enjoy all its benefits!