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How To Choose Credit Card? Research Team | Posted On Saturday, March 03,2018, 05:08 PM

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How To Choose Credit Card?



A credit card is a must for the youth of today. If you visit a Mall or a restaurant, you will find a number of youth, busy swiping credit cards to pay the bills.

Many youth shop online using credit cards. But, if you don't choose a credit card wisely, you could be in a lot of trouble. A credit card is, Buy Now and Pay Later. A credit card charges high interest and there are a lot of other charges too. You could fall in the debt trap.

So you better learn, how to choose a credit card wisely. Want to know more on credit cards? We at will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.

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How To Choose A Credit Card?

1. Understand how a credit card works

If you are a heavy spender, you better understand the workings of a credit card. The date by which you have to pay your dues to avoid late payment charges, is called the due date. The date on which your statement is generated is called the billing cycle date.

If you buy anything closer to the statement date, you enjoy a longer interest-free period. If your due date is May 5th and the billing cycle date is 18th April, then if you make a purchase on 19th April, the purchase will be included in the next billing cycle. You have time till 5th June to clear the dues.

SEE ALSO: 5 Reasons Why You Need To Use Credit Cards

2. Avoid Co-branded Credit Cards

A credit card offered by a credit card Company, which is jointly sponsored by the bank and the retail merchant, is called a co-branded credit card. The disadvantage of a co-branded credit card is these credit cards have an association, only with a particular brand. You will get reward points only if you make purchases at these co-branded retail centres.

You will be forced to make purchases only at these co-branded centres and the retail Company (co-brand) and the bank will gain, while you are the loser.

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3. Flexibility to change the billing date

The date you get your salary and your spending pattern helps arrive at a convenient billing date. You must choose a credit card from a bank, which is flexible in changing the billing date.

4. Opt for credit cards which offer higher reward points

A reward point is an incentive to use a credit card or an indirect discount on your purchase. It is quite easy to calculate the value of a reward point.

If you buy an electric trimmer from a reputed Company for Rs 1,800 and you need 4500 points to completely redeem the item, then the value of each reward point is 0.4 paisa. You can check the reward catalogue from the bank website.

5. Important Tips to use a credit card

  • Do not use a credit card to make an unnecessary purchase or a purchase you can't afford.
  • Pay this month's credit card purchases with this month's salary.
  • Get one credit card and use it only when needed. Do not opt for a credit card just for reward points.

Use a credit card intelligently to build a good credit score. Be Wise, Get Rich.

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