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Are you sick of getting calls from credit card companies offering you a number of benefits and rewards? Most people are. Yet, when you actually want to get yourself a credit card, it’s a tough decision to pick the right one for yourself. Choosing a credit card can be quite confusing. It’s a long process from choosing one to waiting for your credit card application status. There is an endless number of credit cards available from different companies and in various categories. They all come with varying offers, rewards, cashback, credit limits, payment options, services, terms, and conditions. This is part of the reason why it’s difficult to select the right credit card for oneself. In this article, we will discuss how to choose the right credit card according to your daily expenses.
We suggest you begin your search by asking a few questions that will narrow down your choices to how to apply for a credit card. Let’s find out what they are.
What’s my credit score?
The first step while deciding what credit card to get is to find out your credit score. The higher your credit score, the higher is your chance of being approved for a card with better perks. There are several ways to do so. You can check your CIBIL score on the Bajaj Finserv website for free. Based on this score, you can further decide what kind of credit card you should get.
If your credit score is lower than what you expected, you can check your credit report to find the problem. You can then figure out how to improve your CIBIL score.
Now that you know your credit score, you can proceed to choose the type of credit card that you would need. For this, you need to define certain things as below.
Building your credit score
Firstly, you need to define your purpose of getting a credit card. If you want to improve your credit score, then you need a credit card for bad credit. These are generally secured credit cards, for which you have to pay a deposit to the credit card company. These are also good for college students who are new to credit. These are easier to qualify for than other types of credit cards.
Interest rate
Secondly, you should ascertain how you would like to make your credit card payments. Would you like to pay off your balance, or would you carry over a balance from month to month? This can help you determine the interest rate you want on your card. If your answer is the former option, you can go for a high-interest rate card with perks. If you choose the latter, you should go with a low interest or 0% interest card. Some credit cards come with great perks and privileges, but they carry a high-interest charge. However, if you pay off your balance regularly, the interest rate shouldn’t matter to you.
Spending pattern
The next step is to consider your monthly expenses. How do you spend money? What do you spend it on? Credit cards are not only a mode of payment but also a lifestyle accessory. So, you should choose the card that suits your lifestyle and spending patterns to make the most of it. There are several credit cards that are designed for varying lifestyle needs.
- If you’re a person who travels frequently, you should opt for a travel credit card such as the Bajaj Finserv Travel Easy Super Card. Such cards are tailored to help avid travelers in ways more than one. You get discounts on flights and hotels, benefits like free lounge access in airports, rewards like air travel miles, travel upgrades, vacations, and more.
- If you love shopping, then you should go for cards meant for shopping that are heavy on cashback and rewards such as the Bajaj Finserv Platinum Shop Daily Super Card.
- If you want a card that offers benefits across all categories, you should go for a premium card such as the Bajaj Finserv Platinum Plus Super Card. These give you unmatched privileges like exclusive access to airport lounges, offers on movie tickets, fuel surcharge waivers,s and much more.
- Similarly, there are various credit card categories designed for people with different spending patterns. Some of these are lifestyle cards, fuel cards, medical cards, business credit cards, and many more.
Compare your options
After you’ve narrowed down to the type of credit card that’s right for you, it’s time to compare your options. With all your requirements intact, you should compare the additional benefits and services that you’re getting with each of your options. You can do so by asking a few questions, such as how much does it cost to open an account? What’s the annual fee? Can I upgrade to a better card in the future? How quickly will I earn the rewards? What’s the expiration date on rewards? Based on these features, you can choose the right credit card for yourself.
After you’ve made your choice, go ahead and apply for a credit card. Now, you can have the perfect credit card for yourself