Credit cards are an essential financial tool that enables the holders to make purchases and have the luxury of paying back the amount later. A credit card comes with a bank-approved credit limit, and the holder must pay back the amount due on the due date, which is mutually decided by the bank and the holder.
Credit scores above 650 are generally deemed as good for credit card approvals. Scores below 650 are usually considered poor, and approval may be subject to providing security (collateral such as fixed deposits).
Which is the Best Credit Card for You?
- Your spending pattern: Your monthly spending pattern is a significant factor in choosing the right credit card.
- The reward type: Credit cards offer rewards in terms of cashback, rewards points & air miles.
- Fees and charges: Compare the interest rate on different cards and the fees and charges that apply.
- Offers on the card: Some cards have great offers and discounts when you use them to shop on a particular website or when you use it in a specific store.
- Welcome bonus or gift: Some banks offer welcome gifts and joining bonuses on applying for a credit card. Gifts could be the latest gadget or bonus points and miles.
- Payment options: Most cards will allow you to make payments via multiple channels.
