The procedure in selecting the right credit card for yourself in itself is tiresome. You have to analyze every factor that can help you in deciding the best credit card. There is a wide range of best credit cards in India and choosing one that suits best your profile can be very strenuous. In this article, we have jotted down 7 things that you must consider while applying for a credit card. Apart from them, you need to understand that using a credit card sensibly will help you in enjoying the endless benefits of a credit card.

7 things to consider while selecting a credit card:

  1. Analyzing your needs: You need to make a list of your needs and spending habit before selecting a credit card. Then you need to ask questions like do you need a credit card? are your needs met by a credit card? How much will it cost you to get a credit card? and so on. This will help you to focus on credit cards that complement your needs and spending habits.
  2. Type of credit card: After analyzing your needs you need to move next on to choosing the type of credit card. There are reward points, credit cards, cashback credit cards, lifetime free credit cards, secured credit cards, travel credit cards, and so on. You need to see which type of credit card suits your profile best. On choosing the type you need to move ahead for selecting the best credit card for yourself. 
  3. Eligibility requirement: Now you need to check the eligibility requirement, every credit card issuer has provided different requirements. Some have fixed the minimum age requirement at 18 years and others at 21 years. Minimum monthly income requirement is also asked by the credit card issuers. After checking the eligibility requirements select those credit cards in which you fulfill all the requirements so that the chances of your credit card application approval increases. 
  4. Joining and renewal fees: This is the next step that you must consider before applying for a credit card. Select the credit cards which fit perfectly with your income. Do not select those credit cards which will cost you a fortune. Check the joining and renewal fees as you will need to pay them to keep enjoying the benefits of a credit card. A pocket-friendly credit card is considered to be the optimum credit card. 
  5. Narrow down your choices: You can now start comparing credit cards on the basis of welcome benefits, spend-based waiver, milestone benefits, reward rate, interest rates, other hidden fees, and charges, etc. so that you can narrow down your choices to 2-3 credit cards that have the highest value for you. The ones which are pocket-friendly and provide you the highest benefits in terms of rewards. 
  6. Selecting the right credit card: Now the most difficult step comes, you have to select one credit card from the selected 2-3 credit cards in the previous step. You need to see which one will be the optimum choice and which compliments your financial health and needs the most. 
  7. How to apply?: On selecting the credit card now you need to select the method to apply for a credit card. There are two methods to apply one is an online method and the other one is the offline method. You can select the method that is convenient for you. For the online method, you need to visit the credit card issuer’s site and select the credit card you wish to apply for and click on apply. Whereas, for the offline method, you need to visit the nearest credit card issuer’s branch and fill the application form and submit it with the required documents.

Bottom Line:

To summarise, maximizing the benefits of a credit card starts at the initial stage of selecting the credit card. If you have selected the right credit card as per your profile then half work is already done for you. The other half comes into play when you start using it. You need to make wise decisions while using a credit card. You can not overspend, you have to clear all the dues on time, maintain a low Credit utilization ratio, and so on. Applying for a credit card and using it is not the same thing. You have to be very cautious with your credit card usage.

Share your tips as to how one can select the best credit card and your experience with the credit card selection procedure in the comment section.