Satyaprakash Sharma has started a good job in the big company 6 months ago. As soon as he started his job, many big banks started calling him for a Credit card. The attraction of free credits with cashless transactions pulls to borrow a credit card. Satyaprakash was also offered a free credit card, they were told that there would be no charge as well. Satyaprakash, trapped in the wake of these calls, said yes to making a credit card. After getting the credit card, his first month’s bill came so that the truth was shocked.

Now Satyaprakash is stuck in many financial difficulties. We are giving you this information today that before choosing a credit card, do not fall into any tempting offer, but if you first look at these five things then you can avoid the difficulties in the future.

View Interest Rate, Charges, and Penalties:

Some cards offer zero adrenal rentals, but their interest rate may be higher. Which card will be right for you, it will depend on your usage. If you are not in a position to repay the outstanding Balance every month, choose a card with a lower interest rate. IndusInd bank credit card service provides the best credit card service if you are looking to invest in credit card with a low-Interest rate. However, if you can repay the balance of IndusInd bank credit card, then the interest rate of the card will not be of much importance to you.

Simultaneously, you can also change the details of the charge on a late payment, if you spend more than a penalty or credit limit. If you miss a single payment, your interest rate can increase from 16-20% to 36%.

Consider Credit card Limit

Before taking a card, it is important to see the credit limit. If you are using Axis bank credit card and its usage is low, choose a lower limit card. Also check out Grace Period too. This is the period in which you can pay the balance without a fee. Generally, the grace period is up to 15-20 days after the end of the billing cycle. With a long grace period, travelling you get more time to repay your outstanding amount. If you do not pay the full balance or pay a minimum amount then the grace period does not apply.

A Reward should be according to spending habits:

If you are choosing a card with reward benefits, then the rewards should be according to your spending habits and lifestyle. If you go to dinner often in a restaurant chain, choose a card that gives you a reward point or cash back for it. Some cards are often presented travelingby air travel. If you are able to get free air miles every time you travel in the air, then you can save a lot. On the other hand, if you drive too much then pick a card that offers a discount in reward points or fuel surcharge on buying petrol. If you want to use a credit card to pay utility bills, you can get a reward card for it.

Calculate Balance Calculation:

Before taking your first card it is important to know how the charges are calculated. Generally, the daily average balance method is adopted for this. By adding daily balance to it, it is divided into the billing cycle with the number of days. In some cards, balance calculation is done using two billing cycles depending on the two-cycle billing method. Their cost is high. The best way is the adjusted balance method, in which when the payment is made during the billing cycle, the balance is reduced. New purchases made during cycling are not added and charges are low.

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