Last Updated on March 15, 2024 by Nasir Hanif
You must learn how to pick the best credit card when applying for one for the first time in India because it has the power to both establish and damage your credit history. So before applying for a credit card, it’s crucial to understand everything there is to know about them. When choosing a credit card for the first time, there are many different factors to consider, such as promotions, discounts, rewards, fees, charges, payment methods, services, terms and conditions, and the credit limit.
Try AmpliFi, the co-branded credit card from Fi.Money and Federal Bank, if you’re looking for a credit card that offers you the best value for your money. This could be exactly what you need. You are guaranteed a 2% value back through rewards while using this card. Additionally, you will receive 5x on your top three brands, 2x on all partner brands, and 1x on all other purchases, such as rent and petrol. Fi.Money is distinctive in that points are earned in the form of Fi-Coins, our very own reward currency.
Several credit cards are available, each one of which satisfies a different set of requirements. Future credit card users need clarification about which card would be best for them. This basic guidance can help you choose the best credit card for your requirements.
- How does a Credit Card function?
Credit cards involve many steps, some of which are as follows:
- Billing system
Any time you make a purchase with a credit card, the bank is required to get paid. But when should we return the cash we borrowed to the bank? Everything is based on the billing cycle. Your bank will take all the transactional amounts at the end of each billing period. The billing cycle can start on any day of the month and normally lasts between 25 and 31 days, though it may be longer or shorter depending on the card or supplier.
Everyone believes that understanding the card’s characteristics and advantages is sufficient justification for applying, but you should first evaluate your needs and usage goals. There are several purposes for utilizing the best credit card in India, so you must first consider why you are applying for the card.
- Earning Discounts, Rewards, and Cashback
The majority of credit cards offer discounts and cashback for shopping, booking hotel or flight tickets, among other things. Therefore, if you want to get discounts in addition to collecting reward points, you must look for such a credit card.
- Increasing the CIBIL Score
Some people decide to fix their bad credit histories by only using credit cards. People with high CIBIL scores can simply use the card to increase them. In order to be able to borrow various types of money in the future.
- Making EMI transactions
If you want to buy anything expensive using a credit card, you should look for one with no additional interest-charge EMI choices. So, before selecting a credit card in India, you must first assess your demands.
- Making large transactions
If you want to make a large purchase but are unable to save up the money, a credit card may be able to help. So pick a credit card with a higher credit limit.
Look over the following details, including the annual fee and other fees, before selecting a credit card:
When choosing a credit card for the first time in India, you must take into account the annual and renewal fees. In order to avoid paying the yearly and renewal fees, you must also fulfil certain requirements. Your spending patterns will determine whether you meet the requirements for waiving off. Therefore, it would be a good idea to assess your expenses before choosing a credit card.
On the other hand, take a look at the following order fees:-
- Late payment penalties
- Payday loan fees
- The GST rate of interest on the outstanding balance
- Foreign exchange premium fees
- Fees for cash withdrawal
- Cellular Alert Fees
- Charges for Balance Inquiry
- Additional Statement Fees
- Credit Limit
The credit limit for each credit card is unique, and it is determined by the cardholder’s income. Consequently, before using a credit card for the first time, ask the bank representative what your maximum credit limit is based on your income when you speak with them.
- The entire list of offers
You need to carefully consider each offer that is currently available on a credit card. There are several credit card types for shopping, so if you love to travel, pick a travel credit card. Prior to looking at the offers, you must first view the credit card’s numerous categories.
The several categories and deals that the credit card has to offer are:
- Category
- Credit Cards for Your Lifestyle
- Travel and fuel Credit Cards
- Rewards Credit Cards Shopping Credit Cards
- Professional Credit Card Offers
- Business Credit Cards
- Bonus points
- Discounts
- Cashback
- Conclusion
Having knowledge of the options, you can now select your first credit card in India. You should first think about your own requirements for a credit card before looking at the card’s features.
For travelers, the benefits are even better because you can exchange your Fi-Coins for money or airline miles. But that’s only the beginning; you’ll also get access to airport lounges, 1% foreign exchange, the freedom to select your own billing cycle, and tailored reminders. You can effortlessly keep track of your spending and make wise financial decisions using aggregated spending data.
View the card’s specifications to learn more about the fees, charges, payment options, and any current offers. After evaluating all the retail information, you will certainly choose the best credit for yourself.
